, the world cheapest cars which cost Rs 1 lakh, has opened a new segment of consumers. Nano has become the entry level car; its buyers will include two-wheeler users who want to switch themselves to cars at same expense and those who are looking for cheaper cars. With the global scarcity of fuel and hike in price, US car majors are also forced to look for cheaper options. Smaller cars being the first choice at the present situation of oil crisis, Nano is expected to get huge market.
Many car manufacturers are following the trend initiated by Tata motors. Bajaj Auto along with Renault and Nissan are planning to launch small car. Currently under development, the car is likely to hit the Indian market by 2011. It will be first launched for the Indian market and will be taken to other countries later. Toyota and General Motors are also working on ultra-low cost cars to sell in India. General Motors has joined the race and has announced that it is planning to bring in a $3500 small car
with high fuel efficiency. The car is currently being developed at different research centres in the world. GM first plans to launch it in India and later in the global markets. Toyota has also announced its foray in to the small car segment. Korea’s Hyundai Motors
is also developing a $4000 car lower than Maruti’s $5000 car M800.