There are variety of cars that are available in the market as per consumer buying patterns. Compact cars are small cars that offer a different set of features such as larger space relative to economy cars at the expense of fuel efficiency expected to register notable growth in terms of sales volume. The growth in demand of compact cars will be largely fueled by favorable policy. The success in the compact car segment for the manufacturers will be mainly decided by innovative design and attractive prices to attract the consumer base within the segment. The compact car segment is strategically important for the players as it holds one of the leading share in the automobile industry.