Big Boom Coming Soon in India’s Small Car Segment
Thursday, June 21, 2007
Even as competition has built up to unprecedented levels in the car market, one segment has remained untouched – that of entry-level small cars. But that’s all set to change from next year, with a slew of cars priced around Rs 1 lakh revving to get off the blocks.
Urban planners might be appalled at what this could mean for traffic congestion and parking, but companies – and consumers – are raring to go. The first launch will be that of Tata Motors’ much-talked-about Rs 1 lakh car. But in just a couple of years, you might have half-a-dozen such vehicles to choose from. Nissan Renault on Thursday joined the bandwagon, unveiling plans for a $3,000 (around Rs 1.25 lakh) car for Indian roads.
Nissan Renault is expected to team up with Indian manufacturer Mahindra & Mahindra to enter the sub-Rs 1.5 lakh segment in which the likes of Hero Group, Bajaj Auto and Maruti Suzuki, the original aam admi car manufacturer, have already evinced interest. Even Xenetis, a low-cost PC maker, intends to be in this segment.
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