A large number of new car models including compact cars, sedans and sport utility vehicles are likely to hit Indian roads in the coming year providing more options to the car buyers to own vehicle of their choice. Various auto companies introduced as many as 72 new car models leaving one behind the other.

Soft interest rate regime and hike in salaries due to implementation of sixth pay commission raised the purchase power of buyers especially of service class during the year that pushed sales 27 per cent in 2010. Honda and Toyota, two big players of auto segment will introduce two new small cars in 2011 in the price range of Rs 500,000.

Analysts hope that car demand is expected to pick up in the coming year given to low penetration of cars in India especially in the rural segment.

Jagdish Khattar, industry veteran and chairman and managing director Carnation Auto said, "Introduction of new models gives customers a wider choice apart from expanding the market. The fact that automakers are now focusing on the entry-level sedan segment is a very good development for the industry as it helps attract 65-70 per cent customers in the country who already own a small car and have to upgrade to a bigger car."