Honda City, the most popular mid-size sedan, which has made wonders over the years in the Indian car market, is ready to launch in a new avatar by mid-September. The third generation Honda city will be available in 3 to 4 variants carrying different price tags and specifications and will be costlier than the current version.

Following the launch of next generation Indica, the Tata Motors is planning to promote the new variant of Indigo. The car manufacturer is also working on to introduce a crossover model of the Sumo and Safari.

All car buyers who were waiting for the launch of Fiat Linea and Fiat Grand Punto will have to wait more. Fiat's midsize sedan Linea was scheduled for launch in September 2008, but now, it is likely to roll out somewhere in October 2008.

Toyota Motor Corporation has finally launched the 10th generation Corolla- Altis in India. This exclusive car is available in three variants will carry a price tag between Rs. 10.83 lakh and Rs. 12.86 lakh (ex-showroom, Delhi).

The launch of Tata Motors compressed air car may get delayed. There were speculations that the car would make its debut by the end of this year. The company is still working on the compressed air engine technology and the development is in embryonic stage.

The BMW is trying to strengthen it presence amidst tough competition in the Indian automobile industry. It has again hit the Indian roads with its all new BMW 530d.

Skoda India plans to introduce eight new models within next five years to further strengthen its brands’ position in India. Skoda had made its entry in the Indian car market with the popular model Octavia from D segment. And for the first time in India has introduced the Pump-Duse technology in Skoda Fabia, the premium hatchback has also created rave in Indian auto industry giving tough competition to other cars in the same class.

The Indian auto industry is expanding in a big way. Every car manufacturer is on the verge of rolling out new car models in the Indian market. Tata Motors, the Indian auto leader is also maintaining a list of models waiting for launch. Top of the list is the ultra-cheap car, Nano, scheduled to launch in October 2008. Recently, Tata has launched the new generation Indica Vista.

Volkswagen, the German auto manufacturer is planning to set up a research centre in India. This Research & Development centre will be similar to the existing research centre in china that was inaugurated three years ago. The main purpose behind building this research centre is to study accident sites which will help the company to upgrade its cars with safety features accordingly.

Maruti Suzuki, the country’s biggest car manufacturer, has reported an overall decline of 9.19% in car sales. During the month of August, the company had successfully sold 59,908 units but the figures are comparatively less than those sold in the same month last year. In August 2007, the company had sold off 65,968 units.

Renowned luxury car maker Mercedes-Benz is working on the possibility of introducing the A-Class from the small car segment in India. According to Rainer Schmuckle, Mercedes Benz COO ‘the luxury car brand is studying the Indian auto market with regard price positioning and overall perception of the company as far as the A-Class range is concerned, however the decision whether and when to introduce the A-Class car in India is not yet taken’.

Indian passenger cars are likely to go through re-labeling as many car manufacturers are demanding a change in car categorization. Currently, the cars are classified based on their length only by the Society of Indian Automobile Manufacturers (SIAM).

Luxury car manufacturer, Mercedes-Benz is planning to increase its investment in the country to give a good competition to its competitors like the BMW in the luxury car segment.

Luxury car maker Audi has designed a top down approach to launch itself in the Indian car market. Audi India stable already comprises of luxury models like Audi TT, A6, A8, Q7, A4 and the super car Audi R8 is all set for the launch and now is establishing as a luxury brand in the country with the launch of premium and luxury models.

Despite a competitive market and a negative slope in the car sales, car manufacturers are not kicking off their old car models while launching new cars.

Tata Motors has faced many hurdles since the company has started the small car project. Now, as the protests are increasing, the company appears to have a temporary shift for the Nano project. Until the issue is resolved, Tata have started some of the Nano production work in its already established plant in Uttarakhand, a state that has supported Tata in many of its operations. The state also offers lucrative tax breaks and has many of Tata’s key vendors.

Continuing the small car race, the General Motors also wants to participate in the race. However, it has no plans to compete with Tata’s ultra-cheap car, the Nano, but definitely desires to roll out a small cars with improved engine technology and stylish features. The company also states that the car will be designed keeping in mind all the emerging car markets. The designed inputs will be taken from India and the engines are being produced at the Bangalore facility.

The eco-friendly cars are catching consumer’s attention amidst increasing global warming and fuel prices. So, many car manufacturers are working on to launch green cars to meet the demand. Now the Tata Motors has announced its plan to launch the electric version of Nano, the E-Nano, after seven month past the launch of the ultra-cheap car.

Mahindra Renault has launched its passenger car `Logan’ in Nepal. The current distributor for Mahindra vehicles in Nepal, Agni Incorporated Pvt. Ltd. will be the distributor for Logan in the country.

Maini Reva, the sole electric car in India already has a list of rivals waiting for launch. And now one more name is added to the list with the news of Mahindra & Mahindra working on to produce an electric car. The car claims to be bigger than the Reva. Currently, the Reva carries a price tag of Rs 3.5 lakh for the base model in Bangalore and Rs 2.9 lakh onwards in New Delhi.

Honda Civic Hybrid, the first hybrid car of India has witnessed unexpected sales. Till now the company has sold around 50 hybrid cars, mainly to the Honda car dealers and a small percentage to high networth individuals.

Indian car industry is already facing hurdles in the market. Now, it is going to experience further obstacles with the increase of interest rate for auto loans. The RBI has tightened its monetary policy to combat the current inflation.