Cheap cars allow Indians to jump off motorcycles

MUMBAI, June 24, 2007 (AFP) - Trading a motorcycle for a car in India has long been too expensive for many, but manufacturers plan to offer models at 3,000 dollars or less to attract new buyers, analysts say.
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The push by Nissan Renault, Tata Motors and Global Automobiles -- a subsidiary of the Kolkata-based Xenitis group and China's Guangzhou Motors -- comes as car sales in India fell in April and May to a combined 1.52 million from 1.6 million a year earlier.

It was the first back-to-back monthly decline in three years, a period of annual double-digit growth.

But a new sales strategy is about to be unleashed.

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"Tata's small car is likely to be the first one to roll out," said Ashutosh Goel, an auto analyst with brokerage Edelweiss Capital.

"They have a firmed up model design and on-going plant construction.
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The much-awaited model could be priced between 100,000 to 125,000 rupees (2,457 to 3,017 dollars) and arrive by 2008 from its Singur plant in the communist-run state of West Bengal.

"The management has indicated that a prototype of the small car is ready.

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It could be a four-seater with an engine capacity of 630cc," added Ajay Shethia, an analyst with brokerage firm Enam Sec
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