Carmakers enjoy a jolly ride despite cost worries

Surging sales forced major carmakers to raise capacity. Suzuki's planned to set up a new Rs 6,000 crore plant in India.

Low interest rates and higher income shrugged off rise in input costs, helping carmakers to sell a record one million cars while Maruti engaged itself in a war of words over arch-rival Tata Motors' plan to develop a Rs 1 lakh people's car.

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Surging sales forced almost all major carmakers to augment capacity and the Indian automobile industry had the distinction of attracting a whopping Rs 6,000 crore investment by Suzuki Motor Corp Of Japan to set up a new car manufacturing plant for its Indian arm Maruti Udyog Ltd.

Circa 2004 will remain deeply entrenched in the memory of Hyundai Motor India Ltd, India's second-biggest carmaker, as its compact car 'Santro' became the largest selling model at the fag end of the year, displacing Maruti's bread-and-butter model 'Maruti800' from its numero uno position.

The advent of the year revived hopes of re-launch of Daewoo Motors India's compact car 'Matiz' in a new avatar as the Indian arm of the world's biggest carmaker General Motors India began the due-diligence process to acquire the car assembly unit of the failed South Korean automaker.