Analysis of the microcar market in the United States and India : impact of macroeconomic forces and cultural values

The boom of the microcar market in India has lead to domestic and international firms taking advantage of this growth. Many places including India are experiencing this trend, but due to differences in cultures, preferences and values, the United States is not. Companies that want to venture into the microcar market in both countries will need to read the market for the desire and feasibility for these small cars, generally based on designs contra to what has been used by the masses. With thorough, in-depth market research of both American and Indian car magazines, online forum posts and market research databases, this thesis explains the successes and failures of microcars in the two markets over the past two decades and draws conclusions of the future of the design. Results indicate that the microcar boom in India is just beginning; many companies have seen great success within the past 10 years accompanied with India’s overall economic growth. The American market is slowly accepting the idea of smaller cars over previous preferences for larger vehicles, but more time is needed before a microcar can come to the U.S. and be successful on a large scale. As the international demand for oil increases, accompanied with uncertain future supply and global competition for other raw materials that comprise automobiles rise, the necessity of microcars for basic transportation will increase in both India and the U.S. Also, new technologies in safety will drive the demand through assuring customers, specifically in the U.S. market, that microcars are overall a better alternative to other internal-combustion transports