The Race To Build Really Cheap Cars

 - Apr 25, 2007   Updated: Jun 10 2011
References: businessweek & treehugger
Let the price wars for sub-compact cars begin! Car companies seem to be racing to build really cheap cars. Renault-Nissan announced at a plant-opening on April 4th that it was planning on building a car for under $3000, which is 40 percent less than the least expensive sub-compact car available today. In addition to that announcement, Tata Motors, an Indian carmaker, claims that they plan to launch a $2500 car next year.

Implications - Consumers are definitely not complaining about the rise of cheaper cars. People who were not able to afford a car in the past, may have a chance now. Roland Berger Strategy Consultants have stated that by 2012 "the market for vehicles priced under $10,000 is likely to reach 18 million cars."