Hyundai is planning to launch a Rs 1.4 Lakh ($3500) car in India by 2010 or 2011. Top officials denied claims that the proposed car was being launched to compete with the Tata Nano, currently the world’s cheapest car.

President and Chief Executive of Hyundai Motors India said that the South Korean unit was studying possibilities of developing a car priced at $3500 and launching it over the next two-three years. He said that “This is not a rival car for the Nano, as it plans to get buyers from the two wheeler segment. The low cost Hyundai car will compete against cars positioned in the same price bracket as the Bajaj Lite. The proposed vehicle will be marketed mostly in India and will be introduced to the Chinese and South East Asian Market at a later date.”

After the Tata Nano was unveiled at the Delhi Auto Expo, it has opened a completely new bracket of consumers across the world. Renault-Nissan has announced that they will also come out with an ultra low-cost car to compete against the Nano.