Fiat to launch cheapest car in India! But cheaper than the Nano?

This is interesting news. Fiat today announced that they plan to launch the world’s cheapest car in India by 2010.

The world’s cheapest car crown, by popular acknowledgement, currently rests with the Tata Nano, whose production is possibly delayed due to the agitation in Tata Motors’ Singur plant in West Bengal.

Fiat Palio: Now followed by the world's cheapest car

The Tata Nano is expected to cost approx Rs 1.25 lakhs on-road in India. How will Fiat be able to beat that price?

Well, perhaps there are a few lessons to learn from the development of the Tata Nano which Fiat has picked up and will use in their’ world’s cheapest car’.

Fiat’s CEO Sergia Marchionne, speaking to the Indian media at  Society of Indian Automobile Manufacturers meet in New Delhi, did not give any further details on the actual product but said that the proposed Fiat cheap car would see a worldwide launch.

Would Fiat be able to pull it off? While the company surely has the technical and strategic werewithal to pull it off, their actual execution of strategies on the ground in India has so far left much to be desired. The failure of the Palio despite being a solid car, the various Sienna models…

As Fiat proceeds towards their cheapest car target, one thing is certain – they would not have th face the constant doubts that Tata Motors faced all along their way to the Nano. Also certain is the expected criticism from environmental activists wondering about the impact of so many cheap cars in India.

We are surely in for some interesting times!