General Motors Not Building Nano Competitor

Published: Tuesday, July 5, 2011, 16:25 [IST]

The Tata Nano seems to be on its own in the inexpensive small car segment. While Renault has said a low cost car to compete against the Nano was not its immediate priority another possible competitor General Motors has also ruled itself out of the race. The US based carmaker said it had shelved plans to launch a low cost small car in India.

GM India president and MD Karl Slym said: “It (small car) was under discussion when the Rs 1 lakh car (Nano) came in. We have reached a decision point that it is not right for us. We did have a plan (to launch a smaller car than Spark), but no longer now. We have shelved the plans to get into that segment."

The planned small car from GM India was to be positioned below the Chevrolet Spark. Following the shelving of the small car project all new cars from GM India will be positioned above the Chevrolet Spark. Mr Sly said GM had considered a small car priced around Rs. 1 lakh following the launch of the Tata Nano. However the idea was struck down considering the price of the Nano had also gone up.

GM India will now focus on the new diesel Beat that will hit the markets soon. MR Slym said: “ This is going to be one of the most fuel efficient cars. As per ARAI standards, the car will give a mileage of 24 km for every litre."

With no visible competition in the near future, Tata motors can be rest assured that the Tata Nano will continue to be the world's cheapest car.