Car companies such as GM which had simply pooh-poohed Ratan Tatas claim of making a sub 2500$ car have now woken up to the new light. Not wanting to be caught on the wrong footing, as they were during the oil crisis which led to the Japanese gaining a foot hold in the global markets, GM has decided to move a step closer in making such a car. As to what that means , your guess is probably as good as mine since those are the words of the president of GM Asia Pacific.

GM is looking to China to produce a low cast car than now available in its lineup. GM currently has the Chevrolet Spark as its smallest car which also retails in India for a price of about $5,650. However given the large price difference with the Nano, GM is working on a cheap small car for developing markets. This according to suppliers, could be the Detroit automakers answer to the Tata Nano.

The Nano has already had announced competitors from Bajaj, another Indian automobile company.

Source