It's Japan vs Japan on Indian roads

NEW DELHI: It's the second coming for the Japanese auto brigade in the Indian market. Japanese companies have been instrumental in the development and maturing of the Indian car and bike market. And with the industry booming, a new set of majors from the land of the rising sun are set to challenge the ones established in India. Fighting for a bigger slice of the fast-growing Indian pie, Toyota, Honda and Nissan have become aggressive and are looking to cash in on the Indian love for Japanese products.

Suzuki and Honda bet on India early, which gave them a distinct advantage and strong branding. While Suzuki decided to partner the Indian government to form Maruti Suzuki, a company that went on to revolutionize the car market, Honda partnered the Munjals of the Hero Group to form Hero Honda, which literally put the Indian middle-class on wheels with its low-cost fuelefficient bikes.

Both the companies benefited from the mix of Japanese technology and Indian entrepreneurial spirit, a combination that helped them make rapid inroads and quickly occupy a place in the mind of buyers. While both joint ventures are now dissolved—the government sold its stake in Maruti Suzuki to Suzuki and the Munjals have bought out Honda in Hero Honda—the companies continue to command the lion's share of the market, accounting for nearly half of car and bike sales.

The two giants are now facing steep competition, especially from fellow Japanese brands. While Maruti Suzuki is under increasing threat from a variety of companies, including US and European carmakers, it is the threat from the Japanese firms that seems to be worrisome.

Toyota, Honda and Nissan are launching new models and getting aggressive on pricing, which has been the strength of Maruti Suzuki for a long time. Toyota recently displayed how it can manage costs when it drove in the Etios sedan at a very aggressive sub-Rs 5 lakh pricing, surprising Maruti Suzuki. The Etios, which takes on Maruti's big-seller the Dzire headon, has already notched up sales for the next six months even though its deliveries will start in the New Year.

Toyota is also believed to be preparing for an equally-aggressive entry into the hatchback market when it launches the compact version of the Etios in March next year. Honda is also taking a same stance.