Now competition for Tata Nano?

It's official now. Bajaj Auto & Renault-Nissan JV to produce yet another small car from India in the US$ 2,500 price bracket.

The Indian mainline newspapers were awash yesterday with the news of yet another small car from India. Bajaj Auto who had released the prototype two days before the commencement of Delhi AutoExpo 2008 in January has finally declared that they will be launching the small car, codenamed ULC (ultra-low-cost) in 2011 in a joint venture with Renault-Nissan. Except that the engine of this small car will be positioned in the front of the vehicle like other cars and unlike Nano which has the engine placed at the back of the car, time will tell what all similarities or dis-similarities it will have with the Tata Nano and whether it will succeed in creating the hype and market presence that Nano has succeeded in doing till now.

Though consumers will get another choice in the small car segment, the ever-increasing fuel prices will require them to rethink for upgradation from two-wheelers to this four-wheel small. Time only will tell what the ingredients will be for the success of these vehicles in the market place?