The Nano, which was launched with great fanfare last July, costs as little as Rs100,000 ($2,150) and is pitched at India’s aspiring middle classes, many of whom currently travel on two-wheelers. India and its 1.2-billion-strong population is a huge draw for carmakers across the world because of its low car ownership and a rapidly expanding number of affluent consumers. Just 13 per 1,000 people own a car in India, compared with 550 per 1,000 in Germany and 495 in France. The new plant in Sanand, Gujarat, has the capacity to manufacture 250,000 units annually, and aims to increase production to 500,000. The Nano has sparked a race to create other low-cost cars for the Indian and other emerging markets.

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