India is witnessing emergence of a new market segment – a segment of Ultra Cheap and Ultra Small car. Till date the scooter has been the most convenient mode of transportation that was cheap too. Tata Nano has changed the equations in modern India. Now, a small family of four perceives owning a car as an affordable option.
Auto industry in India is experiencing an exponential growth in spite of rising cost of inputs or escalating interest rates. The gap between two-wheeler ownership and four-wheeler ownership has been bridged largely by Tata Nano. Other auto makers in India already have their projects in pipeline to introduce similar or nearly similar cars in India and its neighbouring countries.
Bajaj-Renault-Nissan partnership has already announced formally that it shall be launching is Nano competitor in the market soon. This means that India shall have two variants of One lakh rupee car.
Hyundai shall introduce its $3500 or ultra-cheap car in India by 2012. According to Hyundai India Motor, it shall take nearly four years to completely develop such a car. However, it says tht it shall not be competing Nano in the same segment. Research and development on such a car is already underway in Korea. Hyundai has already shifted its manufacturing operations to India and has made India as its manufacturing and exports hub for small cars.
