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How cheap is too cheap? If you ask the head of Suzuki, the answer is simple; any vehicle that is cheaper than Suzuki's current offerings in India would no longer be a car worthy of the nameplate.

The comments from chief executive Osamu Suzuki surfaced when recently discussing the company's decision to abandon any attempts to build a vehicle capable of selling at the price point of the Tata Nano. Suzuki has considered the threat that the Nano could place on their existing model lineup in India but declined to build one for several reasons.

Decisions to abandon a Nano rival center on standards set by Suzuki and expected by its customer base. The company is concerned that safety, features, and expected comforts can not be provided at a price that is any lower than its current models.

India is one of Suzuki's premier markets with more than 50 percent of the market controlled by the company. Losing ground to Tata could be a significant blow, but apparently a too-cheap Suzuki would be worse.

[Source: Autocar]

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