Is two a crowd in the market for small and cheap cars?

Tata Motors may be in for a shock. Under a tough new emissions regime to be introduced by the European Union, Land Rover and Jaguar are likely to face emission fines of up to

Pressure is growing on Tata Motors' ability to hold the price tag of Rs 1 lakh for the Nano with leading auto-component suppliers saying they have approached the company for a price increase. With steel prices soaring, the company recently set up a special team to look at ways and means to control the car's manufacturing costs. Now Delhi-based Sona Koyo, which is supplying steering systems for the Nano, and Minda Group, which supplies electrical switches, have confirmed that they and other component suppliers have suggested a price rise to Tata Motors.

It Indicates India's Manufacturing Prowess

Japanese carmaker Honda on Tuesday cautioned that high interest rates and inflation would impact car sales in India this financial year, though said premium segment would manage a double digit growth. The company, that rolled out its next-generation Accord sedan after the model was discontinued a few months back, said market conditions appear to be tough for the first two quarters of 2007-08.

A day after announcing a low-cost $2500 car in partnership with Bajaj, Nissan has chalked out plans to also go solo and introduce an entrylevel car in India by early 2010. The car, with 90% localisation, will be priced aggressively in the volume segment. "Nissan will compete in the entrycar with a dedicated platform that will be used for at least three models built in five leading competitive countries (LCCs), the first of which will be produced in Thailand and India in early 2010,' Carlos Ghosn, president and CEO of Nissan, said.

The Supreme Court on Tuesday refused to stay the operation of a Calcutta High Court judgment upholding the acquisition of about 1,000 acres of land in Singur by the West Bengal government for the Tata Motors

Cartoons

DETROIT: Nissan Motor plans to sell an electric car in the United States and Japan by 2010, raising the stakes in the race to develop environmentally friendly vehicles. The commitment is the first by a major automaker to bring a zero-emission vehicle to the U.S. market. Nissan also expects to sell a lineup of electric vehicles globally by 2012.

German carmaker Volkswagen and Japan's Sanyo Electric Co will jointly develop a lithium-ion bat tery to be used in hybrid and electric cars, the Nikkei Financial Daily reported on Sunday. Volkswagen will aim to start importing and using the battery in its hybrid and electric cars by 2012, the Nikkei said. Sanyo makes nickel-hydrogen batteries that can be recharged repeatedly and Volkswagen and subsidiary Audi AG in the Volkswagen Group's first hybrid model to be rolled out as early as next year will use the batteries.