2nd UPDATE: World's Top Auto Makers Rush To Unveil Sedans, SUVs In India

NEW DELHI (Dow Jones)--The world's top auto makers converged at the auto expo in New Delhi to unveil new vehicles as they attempt to reverse slowing demand in one of the world's potential growth markets for automobiles and as markets in the West remain sluggish.

In a marked departure from the previous edition of this biennial show that was dominated mainly by the unveiling of small cars, this year's show will witness Hyundai Motor Co. (005380.SE), Suzuki Motor Corp. (7269.TO), Toyota Motor Corp. (TM), General Motors Co. (GM), Jaguar Land Rover and others introduce 50 new vehicles, many of which are sedans and utility vehicles.

Hyundai Thursday introduced the Sonata sedan and also made the global premiere of its multi-purpose vehicle concept Hexa Space, while Suzuki unveiled the XA Alpha, a four-meter long concept for a compact sport-utility vehicle. On Friday, Suzuki will unveil the Ertiga, a multi-purpose vehicle.

Nissan Motor Co. (7201.TO) introduced its multi-utility vehicle, Evalia, at the show, while GM displayed new versions of its Chevrolet Captiva and Tavera utility vehicles that will be sold later this year.

Mahindra & Mahindra Ltd. (500520.BY) plans to start selling the Rexton and Korando C SUVs of its South Korea unit, Ssangyong Motor Co., later this year and in 2013, respectively.

Germany's Audi AG (NSU.XE) will introduce the Q3 SUV to add to models such as the Q5 and the Q7. Its native peer Daimler AG (DAI.XE) introduced the new M-Class SUV while BMW AG (BMW.XE) introduced the high-performance M5 sedan and also plans to start selling in India from March the hatchback, convertible and Countryman models from its Mini brand.

Ford unveiled its EcoSport SUV, which has a 1.0-liter gasoline engine, and will be produced in the country from later this year. French car maker PSA Peugeot Citroen (UG.FR) said it may start selling its cars in India ahead of its original target of 2014 by importing the 508 sedan and the RCZ sports car. Its native peer Renault SA (RNO.FR) will introduce its Duster SUV at the show.

Toyota introduced new versions of its Fortuner SUV as well as the Innova multi-purpose vehicle.

The new offerings come as auto makers worldwide turn to emerging markets such as China, India, Russia and Brazil--seen as key growth markets compared with Europe and the U.S.

They also reflect the confidence that local and foreign companies still have in India's auto market, which until last year was one of the fastest-growing in the world, but has recently been affected by a series of interest rate hikes and fuel price increases.

Car sales in India grew for the first time in five months in November, but the recovery is unlikely to salvage the industry, which expects to miss its modest forecast of 2%-4% growth in sales in the financial year through March.

"Our sales in this fiscal year will definitely be lower than last year. It's difficult to predict by how much as we still have three months to go," Maruti Suzuki Chief Executive Shinzo Nakanishi told reporters.

Auto makers and analysts hope that growth will rebound in an economy that's expected to swell 7%-7.5% this financial year.

"The past year has seen several constraints in high fuel prices and high interest rates. But we are still optimistic on the long-term potential of India and expect the slowdown to be temporary," Nakanishi said.

Kumar Kandaswami, senior director at Deloitte Touche Tohmatsu India Pvt. Ltd., said "the current slowdown is not here to stay as the fundamentals of car sales growth, namely urbanisation and car density, are still very attractive."

He said India has a higher chance than Brazil, China and Russia to witness strong growth in car sales if inflation is controlled and disposable incomes grow faster.

-By Nikhil Gulati and Santanu Choudhury, Dow Jones Newswires; +91-11-4356-3305; santanu.choudhury@dowjones.com

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