Autoblog

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]

click above to view more images of the Tata Nano

The unveiling today of the Tata Nano in India has caused quite a stir. The $2,500 micro car will officially become the world's cheapest production car when it goes on sale later this year, and we've actually been getting emails all day from people the world over asking how they can buy one.

We've got video of the Nano's live reveal at the 9th Auto Expo in New Delhi, and it was quite an event. Consider that the unveiling's soundtrack was the theme music from 2001: A Space Odyssey, a.k.a. "Also sprach Zarathustra" by Richard Strauss. That's a pretty heavy score for such a small vehicle.

We've also added more pics to our gallery that show the Standard Nano and Luxury Nano from more angles, including our first view of the interior. We'll save you the suspense, it's spartan, very spartan. Don't expect XM and a navigation system to be offered in the Nano. As a matter of fact, it wouldn't be that hard to find an optional nav system on some luxury cars that cost more than the Nano itself.

Follow the jump to view video of Tato Nano being unveiled.

[Source: Tata Motors]

We told you last year about India's Tata Motors' plan to begin selling a four-door, rear-engined, VW Rabbit-sized vehicle for less than 100,000 Rupees, or about $2,400.

Right now, .8% of Indians can afford to own cars compared to 70% of Americans. Even so, India's urban roads are already over-crowded, and urban planners as well as environmentalists worry that even a small increase in car ownership could be disastrous for the country.

Or it could be just the thing needed to spur the country's economy. Optimists see the as-yet-unnamed super-cheap Tata spurring the construction of larger, more modern highways, as well as fueling stations, driving schools and car parts stores.

Either way, Tata will need to sell a whole helluva lot of 'em since they will carry less than a 3% profit margin.

(A Tata Indigo Marina is pictured)

[Source: Sunday Herald]