Hyundai has set its eyes on the micro car segment; it is planning to launch a competitor to the Tata Nano by 2011 with an estimated price tag of $3,500.
However, Hyundai has said that it has no intention to go head-to-head with the Tata Nano, which is believed to change the Indian car market forever. Hyundai’s managing director in India, Heung Soo Iheem said: “We do not have immediate plans to fight with the Nano. It is planned keeping in mind the Indian market conditions and the interest of the general public.”
The economy car is currently under development at Hyundai’s research and development center in South Korea, it would also be exported beyond India.
The competition in the segment is getting tougher as Indian company Bajaj has teamed up with Renault to create a similar low-priced car by the end of 2011. Time will tell which budget car will emerge as the lower-middle class’ favorite.