The launching of the world's cheapest car, the Nano by Tata Motors in March (See: Ratan Tata launches Tata Nano) has prompted other car manufacturers to rush into making low cost cars for emerging markets with South Korean carmaker Hyundai Motors planning to bring out a 800cc low-cost car for the Indian and other emerging markets.
The Japanese business daily Nikkei reported today that the world's fourth largest automaker in terms of units sold, Hyundai Motor plans to manufacture an 800cc new model car in India through its Indian subsidiary Hyundai Motor India Ltd.
In an interview the Japanese newspaper, Lheem Heung-soo, chief executive of Hyundai Motor India Ltd, said that the new car would be manufactured at its Chennai factory.
He added that although the car's roll out was still years away, abd the retail price would be in the region of $5,000-$6,000 (Rs2,42 lakh – Rs3 lakh), twice that of the Nano.
But, in March, the Korean car maker had announced that it plans to come out with a small car for India and China priced at around $3,500 (Rs1.77 lakh). (See: How will rivals react to the Nano?)
Although the base model of Nano cost Rs125, 151 and the luxury model Rs185,498, it shows how difficult it will be for Tata Motors rivals to compete as far as pricing of low cost cars are concerned.