US car maker General Motors is preparing to take on the Tatas, the manufacturer of the yet to be launched ultra cheap car– the Nano, on the Indian turf.

The GM which has a world wide presence is set to expand its Indian operations by its launch of small car in two years. The company plans to keep the price of its new car lower than its present cheapest model.

The GM announcement comes at the time when car manufacturers both in India and abroad are discussing the implications of Tata’s Nano to the priced at Rs 1 lakh. Though GM says its small car would not directly compete with the Nano in price, it has still kept the price of its new car a secret.

The GM which introduced the Chevrolet Spark a few months ago has seen a fair success. Though the car is priced around Rs 4 lakh, the GM is selling about 2,800 units of the model every month.

Apart from Chevrolet Spark, GM has model line up of U-VA, Aveo, SRV, Tavera, Optra and Captiva for the Indian market. The sales of GM cars in Asia Pacific region constitutes only 7 percent of its global operations and  company is looking forward to increase its operations in the region by expanding its manufacturing facility in India apart from other countries.