NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Sunday, August 1, 2004

“Price is the key. Motorbikes and scooters in India retail for a relatively affordable $600 to $1,500. But most cars go for at least $4,500 — one reason so few are sold. Local automakers are racing to create cars that would retail for 100,000 rupees — roughly $2,200, or just half as much as the lowest-priced models sold today. At that magic price point, the reasoning goes, sales could double from last year’s total of 900,000 vehicles.” Read full article here.