Tata Motors’ diminutive Nano is getting closer to Job 1. if all goes as planned (and when doesn’t that happen in the auto industry?) production of the Nano should kick off early this fall. As that date approaches, a number of questions arise. As an extremely fast growing economy, India faces one of the common problems of such scenarios: high inflation. With inflation running at 10 percent right now, will Tata still be able to meet its $2,500 price target? Regardless of price the Nano utlimately sells for, what comes next? Tata is reportedly working on cleaner and greener versions of the Nano to help deal with the issues of pollution and rising fuel prices. Tata has previously licensed the compressed air car technology developed by MDI and an air car based on the Nano seems like a good possibility. Battery powered and micro-hybrid (auto start-stop) are also likely.

Popularity: 1% [?]

It was rumored that Nissan/Renault was serious about fielding a low-priced competitor to the $2,500 USD Tata Nano, and the automaker made it official today by announcing a plan to produce an equally inexpensive car called the ULC in conjunction with Indian automaker Bajaj Auto. The two companies are forming a joint-venture to produce the ULC, which will be built at an all-new facility in Chakan, India at an initial rate of 400,000 units per year. The Tata Nano has no need for concern just yet, as the ULC isn’t scheduled to go on sale until early 2011 in India and then even later in export countries. We’re doubtful that the U.S. is among those export considerations, but parts of Europe will likely see the ULC not long after the Nano arrives in their market.

Popularity: 2% [?]

Toyota has been working on an affordable small car that will be cost-competitive in emerging markets, and Autocar is reporting that India is being considered as a destination for production. India makes sense due to its low-cost labor, and with competitors like the Tata Nano going for as little as $2,500, the world’s biggest automaker will need to cut cost everywhere it can. There is no word as to exactly what vehicle would be produced in India, but one option is Toyota’s production iQ from Geneva, which is scheduled to begin production later in 2008. Toyota is looking for initial sales of the iQ to crest 100,000 units.

Popularity: 1% [?]