As Tata Motors gears up to roll out Nano by Durga Puja, country’s largest car maker Maruti Suzuki is confident that the Rs 1 lakh wonder will be of no competition to it.
Maruti Suzuki India Chairman R C Bhargava said, “It (Nano) increases the market size but it will not cut into the market of people who are buying cars that are in the Rs two-lakh price category. A person who buys a car for Rs two lakh, I believe that there will be very few people who will buy this (Nano) car. It is a new segment.”
He said people who could not buy Maruti 800 would buy Nano as the price difference was huge. Bhargava said more than the existing entry level cars, Nano will affect the two wheelers.
Casting doubts over maintaining the Rs one lakh tag in the wake of rising steel prices and other input costs, Bhargava said: “The one lakh price will be difficult to maintain.”
Asked if MSI planned to come out with a competitor to Nano, he said: “Let me make it clear that there is no plan to develop a one-lakh car at Maruti.”