We see a future for small cars in developed markets
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17/06/2008
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Times Of India (New Delhi)
It is a coming of age for the small car. Just as India and the world focus on ultra-cheap cars, the original small car seems to be acquiring a big status globally as more and more people choose to drive small. Importantly, the trend is catching up in Europe and the US. Uwe Achterholt, global head of automotive practice for consultancy major KPMG, speaks with Pankaj Doval: Is the small car phenomenon restricted only to emerging markets like India or is it spreading to the developed markets? Probably yes, though the definition of small may be different in different markets. In the US, it is happening more due to concerns on fuel price, but it is environment and sustainability issues in markets in Europe, China and India that is fuelling small car growth. What is the reason for this trend in developed markets? The next generation is not so emotional about cars like, maybe, we were. Things like brand, luxuries were important for us but the new generation thinks different. They do not think much about them and see the car more of a commodity to take you from point A to point B comfortably. Therefore, we see a future for small cars in developed markets as well. For example, in Germany people above 40, like me, are brand oriented. But it is more of those in their twenties and thirties who are thinking otherwise