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Tata Nano has got a huge publicity from Indian as well as foreign media, but will the same continue for next two years… Or even if it does, would the same work to Nano’s advantage? Such questions get valid answers after Nano gets its competitor in the market.
There are other competitors of Nano in the making in next couple of years. The French carmaker Renault SA and its Japanese affiliate Nissan may come with one. Bajaj Auto have already unveiled the concept for its small car at the start of the Auto Expo in Delhi, of worth 1, 35,000. Hyundai that drove away many car awards this year is also planning small car offerings for Indian roads. Ajanta- the clock makers are also in the race of making ultra-cheap/ electric car that will be cheaper than Nano.
The Renault-Nissan Carlos Ghosn has already pointed that at the World Economic Forum (WEF) in Switzerland that Renault and Nissan would launch a new car at the same price of the Nano in India. Though, Renault SA and Nissan were earlier planning a car of Rs.1, 35,000 cars, they now want to roll-out the same for Rs.1, 20,000.
The upper trims of Tata’s Nano would cost more than Renault-Nissan’s upcoming car. Car lovers then may prefer to get a French car than an India. For Renault SA to bring down the price of their low-cost car by $450 is almost compulsory since the future potential in small cars. Ghosh also announced a tentative date of the launch, thus be expected to be around early 2010.
French car makers are really impressed with the low-cost manufacturing methods employed in India. So much so that they have already impressed the French carmaker enough to sign deals with Mahindra and Mahindra Ltd, Ashok Leyland Ltd and Bajaj Auto for making small trucks and smaller cars.
Report from rating agency CRISIL says, Nano's launch would end up expanding the Indian car market by 65 percent as it will rapid other car makers desire to enter the small car market over the next few years to lure two-wheeler owners to upgrade to cars.
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