India's Best Selling Car 2011 - Tata Nano

Tata Nano, the small car from the Tatas, is projected to become India's second best selling car
next year, according to market research firm JD Power. According to a report by JD Power, Nano has been projected to become India's second best selling car next year.

By 2017, the top three models will be the Alto, Nano and Maruti Suzuki Wagon R, according to the report. Currently Alto is the highest selling car brand in the country, selling on an average of 25,000 units every month.

As per the report, the combined sales of mini and sub- compact vehicles would be 9,97,000 units in 2010, increasing to 3.14 million units by 2017. The size of the Indian domestic passenger car market stood at over 15 lakh units in 2009-10 and it is growing at a rate of about 30 % every month in this fiscal.

Tata Motors had launched the Nano, touted as the world's cheapest car, in 2009 and is currently delivering the first lot of one lakh cars to the customers. It produces the car from Sanand in Gujarat and the facility has an installed capacity to produce 2.5 lakh units annually.

JD Power also adds that the challenge for producers of low-cost cars in India will always be to keep production costs low, while meeting rising consumer aspirations. The government offers tax incentives to the small car buyers to promote fuel efficient mode of transportation. Cars that do not exceed four meters in length and are powered by 1200cc petrol or 1500cc diesel engines are levied 10 % excise duty compared to 22 % for other vehicles.