Hyundai looks set to be latest challenger in the ultra low cost car ranks in India with their announcement of a new model targeted for that market. Tata Motors kicked things off with the introduction of the Nano earlier this year with its starting base price of only $2,500 U.S. It doesn't look like Hyundai plans to go quite that low, instead coming in a little higher at $3,500. Development of the new model is only now beginning with a target launch date of 2012. According to Hyundai's Indian boss H.S. Lim, the new car is not meant to be a direct competitor to the Nano (a thousand dollars might not be a big deal on a $50,000 SUV, but since that amount is almost half the cost of the Nano, people will notice), even though better-equipped versions of the Nano can exceed the Hyundai's price point. In the meantime, Hyundai is launching natural gas and propane versions of several models, including the Accent and Santro this year.