Gone are the days when a passenger car was a hit as soon as it hits the Indian market. Notably, the average volume of a product for a company has come down from the levels where they were around three years from now.

Automakers are now being forced to spend more out of their pockets on the R&D activities to keep the consumer interest ongoing in its brand which is denting the margins as the expenses are coupled with the marketing and sales expanses that the company already incurs.

Moreover, several auto majors are adopting methods of offering value-added and premium features such as power windows, power steering and other electronic devices in small cars to the consumer with an aim to keep the momentum going on.

In fact, it may be noted here that products like Volkswagen Polo, Ford Figo Fiat Punto and Tata Indica Vista could not match the level of volumes products like Swift or Accent have enjoyed in the Indian market simply because of the fact that the average sales on a model have come down with the time.