India enters the world competition producing automobiles as Tata Motors launched its new car, the Nano, in New Delhi, India.

      The Nano, is known as the “People’s Car’   It is a new lightweight, low-cost car.   Where have we heard that name before?   Could it have been the German Volkswagen Beetle?

      According to its Automotive Mission Plan, India’s government expects sales of Indian cars to grow 16 percent each year throughout the next 10 years…from $36 billion to $145 billion within the next 10 years.  

      The Nano sells for approximately $2,500.   It has no power steering, no power windows, radio or air conditioning.   The focus is on cutting corners in every possible way to make a car cheap enough for the average low-income family in India who now relys primarily on buses and scooters for transportation.   Tata Motors does not plan to market the Nano for export for another three years.  

      When India’s government focuses on a low-cost car strategy, Tata could be looking toward sales in Southeast Asia, Central Asia and Africa butting heads with Korean and Japanese automakers. Suzuki’s Maruti will be one of the Nano’s main rivals as well as Western manufactures such as Ford and Volkswagen who are increasing their research to develop cheaper cars.