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General Motors can claim about three percent of the car market in India, and it wants more. Tata's $2,500 Nano will still be the lowest priced new car in the world, but GM wants to offer something less expensive than its $7,350 Spark for Indian buyers. Group Vice President David Reilly points out that while a sub-Spark would be inexpensive, competing directly with the Nano is not something GM intends to do. If a bargain basement GM were developed, it could be leveraged in other markets besides India – it seems feasible that it'd be easily ported to the also-emergent Chinese market.

Three quarters of cars sold in India are small vehicles, and if the General can ratchet up its market share with a new model, the gains in other new markets with explosive growth could help further offset the sluggish performance of sales in the United States. To help achieve that goal, another manufacturing plant is currently underway in Pune, and should be fully up and running by the end of this year. There are also plans for an engine plant in India, though no details are forthcoming yet.

[Source: Automotive News - sub. req'd]

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    • 1 Second Ago
      • 7 Years Ago
      The Nano is causing quite a lot of ripples world wide it would seem. I think Ratan Tata could not have announced the Rs 1 lac car at a better time, what with fuel prices at an all time high supping concerns about running costs. Good for everyone that vehicles like these are being developed, with lower running costs and which also take up less room on the road.
      - http://www.zapworld.com
      • 7 Years Ago
      Umm, how about a viable 1st small car for the U.S? Pretty please? And don't say 'Cobalt.' Yech.
        • 7 Years Ago
        ...Aveo. Not much better than Cobalt, but still....

        Also... whose bright idea was the name Spark? I can see the recall letters now.....
      • 7 Years Ago
      Yawn. Matiz stinks. Glad I don't live there.
      • 7 Years Ago
      They need to first fix their dealer network there
      • 7 Years Ago
      Oh, it can be good also for fleet to rent: in future, we need small cars for fleet. http://www.fleetblog.it/
      • 7 Years Ago
      The way the U.S. economy is going, GM might want to think about bringing a $7500 car over here.