Small car would target emerging markets
18 August 2009

General Motors is planning a rival to the Tata Nano, the world’s cheapest car.

Following a slump in domestic sales car makers like GM are keen to get a foothold in emerging markets.

GM’s Nano rival would not be quite as cheap but would be a low-cost small car with basic specification.

"When Tata Motors in India came out with their $2,500 Nano vehicle, it put a lot of auto makers on the spot," said Nick Reilly, GM's new executive vice president of international operations.

"We are not going to make cars that cheap because that is really a specific car for a very specific market that has different emissions standards and specifications than markets like the U.S. and Brazil.” Reilly was speaking at a media briefing in Brazil, one of GM’s largest markets outside America.

"So we are looking at lower cost vehicles, but do not know yet where it will be made or where will it be sold, though most likely in Asia."

Around two thirds of GM’s sales were outside North America in the first half of the year and this is set to increase.

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