Tata Nano may soon fail to remain the cheapest car in the world

October 21st, 2010 - 9:55 pm ICT by Aishwarya Bhatt  

New Delhi, Oct 21 (THAINDIAN NEWS) Toyota Motor Corp. seeks to pose a new challenge in the cheapest car arena.

The automaker is noted for its quality, so cutting down on the cost and not compromising on the quality of the vehicle is the challenge to the company.

The company has launched it’s Etios compact which will cost half of the price of its cheapest competitor in India.

India’s cheapest competing model for the Etios compact is Suzuki India’s Maruti which is sold for Rs. 405,300 or $9,200. The Etios compact will be offered for a similar cost.

The managing director of Toyota in India knew very well that the challenges that his company faces in balancing quality with the pricing in India.

He said, “It has been a challenge to build quality at a lower price. The Indian car market is one of the toughest markets in the world. Customers and car owners are very cost-conscious”.

The world’s cheapest car is the Nano which is priced at Rs. 131,331 or just less than $3,000. Nano is set to be challenged as the world’s cheapest car when Nissan releases its planned $3,000 car in 2012. The struggle for the tag of the world’s cheapest car continues.

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