Nano may become market leader in small car segment

Tata Nano may become the largest selling small car in Indian market. There are two reasons which support the Tata Nano. The first reason is that Tata Nano is priced very low in the segment. The effect of cheap price has already shown in the booking of the car. Second one is- the present leader in the segment, Maruti Suzuki, has announced to phase out its Maruti 800 and Omni. This will make Tata Nano the single cheap car available in the market. It may be noted that from January 2010, new emission norms would be activated and it will be no longer be sold in 11 big cities of the country.  The important question is whether Tata Motors would be able to manufacture enough units of Nano that would meet the demand.” said Kapil Arora, Partner (Automobile), Ernst & Young.
 Although Nano could become the highest selling car
 in its segment, it would take some time to contribute to Tata Motors’ sagging bottomline. The company is also planning to launch the diesel version of the Nano. There has been speculation that the diesel Nano could cost around Rs 2 lakh, making it the cheapest car in the category.

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