General Motors declared that they have no intentions in competing against Tata’s $2500 Nano. General Motors Asia Pacific president David N Reilly stated that they cannot compromise with the Chevrolet brand by making a competitor but are looking at making another small-car below the Chevrolet Spark’s price point.
The Chevrolet Spark is at present, the entry-level model of GM priced at US $7564 (ex-showroom price, Delhi). But nothing about the cost aspect was revealed for this new car which is planned to enter the Indian market sometime in the next two years. GM will develop this car with other similar International markets in mind and will use it to attain its target of 10 per cent market share in India by 2010.
At present, three-fourths of the cars sold in India are small cars which has evolved into a major small-car hub. Toyota , Renault, Ford, Hyundai and Fiat are all developing their own Nano versions cheaper than anything else in their product range.
Rising crude oil prices is the reason why people not only in India, but all over the world prefer small, economical cars which are easy on the environment too. But crude oil prices are not ascending alone. The cost of raw materials which includes steel and aluminium, which are used to make vital components in a car, are also increasing.
The big question remains to be safety. At such rock-bottom prices, will the safety factor be given adequate importance by car makers?