The Nano will be priced at Rs 1 Lakh (ex-showroom), which is Rs 96,000 cheaper compared to the ex-showroom price of the base variant of the Maruti 800 – the cheapest car in the world before the Nano. Prices in the 1.3-million used car market crashed by almost 15 to 30 percent. Before the official announcement of the Nano, the price of a 2002 or 2004 used car Maruti 800 model was Rs 1.1 Lakh, but after Nano’s entry, the prices of the very same second-hand Maruti 800 cars have come down by about 30 percent and cost Rs 75000 to 50000 in the used car market.

Not only the Maruti 800, but many other small cars have the same story to tell. A 2003 second-hand Hyundai Santro that was available for Rs 2 to 2.2 Lakh can now be bought by shelling out only Rs 1.5 to 1.65 Lakh. The prices of a 2003 used WagonR model has come down to Rs 1.42 Lakh from Rs 1.8 Lakh. Even the price of a three-year-old Alto has come down to Rs 1.10 Lakh from Rs 1.35 Lakh.

This may be bad luck for the used car market, but it is definitely good news for the common man. Car enthusiasts who were looking to buy small cars like the Maruti 800 are now turning their eye on the Alto or even better small car models for a price that can only go further down in the future.