According to rumours, GM is currently working on a low budget Chevrolet Spark, set to compete with the future Nano, which would cost £1,400 and would be built in China.
If the rumour is true, GM would be the third carmaker after Tata, Hyundai and Renault to jump into the very low budget market segment. However, the path seems to be fraught with pitfalls. The Chevrolet Spark is currently sold at around £2,900 in China and GM has asked its engineers to divide the price tag by two. Cutting production cost would be the major way of achieving the target.
Ten years ago, carmaker had rushed into the new Chinese and Indian markets, but first sales results were rather disappointing due to lower income than expected. Ten days later, both countries are richer and carmakers made progress in developing low cost cars. The question is not when will they drive, but what will they drive?
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