Nissan May Develop Tata Nano Competitor for India

When it comes to affordable microcars in the Indian market, Tata’s Nano — complete with a $2500 price tag — seems to be tops. Nissan, however, wants to overthrow the Nano, and may be developing its own low-cost car for India.

CEO Carlos Ghosn has acknowledged that his company is still on track to build such a vehicle, likely in partnership with the Indian firm Bajaj Auto. Bajaj has a long reputation of building motorcycles and three-wheeled “tuk-tuk” utility vehicles, but this would mark its first stab at building an actual motorcar.

Few details of the design are known — speculation suggests it will seat four passengers — but like the Nano, Nissan/Bajaj’s vehicle will have to carry an astonishingly low price tag. Ghosn has said that the car will likely cost no more than $3000, allowing it to remain competitive in the segment.

That price point raises some concern with investors, who wonder if the project is ever likely to see a profit. According to Buisnessweek, Bajaj is having difficulty in cutting costs at its various suppliers.

Nissan anticipates building approximately 400,000 vehicles annually in a new Bajaj facility just outside of Mumbai.

Source: Businessweek