Big investments and huge markets are pushing India to become a global production base hub for small cars.

India can boast of world class capabilities in the production of small cars owing to its strong domestic market. Of the 800,000 cars sold in the country in the last one year, 600,000 were small cars of engine capacity up to 1,300 cc. And the market could just explode if Tata Motors succeeds in bringing out its Rs 1-lakh car.

Business Standard reports on the recent big ticket investment by Maruti.