'Cheap Cars In India - Not So Cheap'

Cheap Cars In India - Not So Cheap

By Car Agent at 03/22/08 10:05

Indian manufactured cars seem to be cheap. They are actually really cheap, for the first world nations especially in Europe and US and some part of Asia. But cheap cars in India do not really rhyme with what it really means in the country.

An average per capital income of each Indian is only $500. The big population of India, one of the biggest in the world, mainly use scooters and motorcycles. That is the reason why they were once called the land of two wheels.

Nissan plans to make cars for India with a relatively cheaper price than those of the other car manufacturers in the country. They would like to introduce a car that is only worth $2,500, almost half of the price of what Suzuki called cheap with their $4,500 car.

However, for the past few years, the world has seen how important India's role in the car manufacturing world. Cars made in India can be of two types, it can be a custom made car for the Indian car market or it can be a niche car of which buyers from around the world are craving for.

India also plays a big role for Asian car giants. They built large plats for mass production of cars that are distributed all over Asia including Hyundai, Toyota, Nissan, Suzuki and local brands such as Tata, Skoda and Mahindra. These cars are 'cheap' for many people but for the more number or Indian citizen, its way off their budget. Recently, General Motors, Ford and Chevrolet joined the concoction of brands in the country. And I doubt if they will lower their price ro meet the 'cheap' price for most Indians.

It very Ironic how a big country with many billionaires and big population, of which some are ranked as world's richest persons, suffer this low per capital income. And its really no surprise why most of their locals chose to ride scooters and motorcycles rather than owning a car.

SHAH ALAM, Malaysia (AP) - A Dutch-based company announced plans Tuesday to produce affordable electric cars by the end of 2009, promising they will be much more powerful than existing models and have zero emissions.

Detroit Electric is in negotiations with Malaysia's national auto maker, Proton, to produce the car in this Southeast Asian nation and is also talking to a German and a U.S. carmaker, said the company's chief executive, Albert Lam. He declined to name the companies.

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Tanyaa

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