The small car has suddenly turned big. The Indian auto industry has redefined what a small car means, or to be precise it has refined small car to a length of 4 meters from 3.8 meters.

This move is expected to benefit Hyundai, General Motors, and Honda Siel. The industry has submitted the redefinition proposal to the Ministry of Finance and is likely to get clearance as it is believed that the two are of the same stance in this regard.

The report however added that there is still lack of consensus between the industry and the finance ministry over the issue of engine specifications. It had earlier been reported that the Society of Indian Automobile Manufacturers (SIAM) wants that the clause on engine specification to be removed. The finance ministry had effected a cut in excise duties on small cars from 24 to 16 per cent.

The ministry, in the meantime, had announced a new definition for small cars at 4 metre length while adding a new clause of maximum 1.2 litre engine specification for petrol and 1.5 litre for diesel. SIAM is of the opinion that the definition of 4 metres for a small car is agreeable, but the curb on engine specification is not easily acceptable.

According to auto major Ford, the confusion over small car definition has added a new variable that has to be taken into account while designing a car. The car maker is looking at sub-Rs 4 lakh category. Honda Siel, added that its small car will have a engine which gets the benefit of lower excise but in case the policy is rationalised then it might look at having multiple engine options just like in the case of Honda City. Honda is expected to unveil its small car in year 2009.

Auto news for auto freaks! iDrive.in
DWS community! / Cricket blog
DWS F1 News