So Tata is trying to put every car maker into shame by releasing the Nano. “The People’s Car” that would only cost a mere fraction of what you’d pay for any other brand new car with the price pegged at $2,500. It is considered to have much potential to sell really huge in India and if it decides to export to neighboring developing nations.

But will Toyota (which claims to be numero uno, and latest figures show that they are) have none of that? Bet your ass they won’t.

With the battle between GM and Toyota on who’s really the top dog of auto manufacturing based on sales, both are finding ways to dominate each and every market around the globe. The challenge posed by Tata is for them to create and release a car that’s cheaper than any of the cars they have rolling out of the line. GM, in a Chinese tie-up, will be creating a mini car that will be priced at $3,500.

Toyota is now doubling its investments in India and will be entering the market for small cars. The Yaris (pictured) is Toyota’s smallest in the line-up right now and it doesn’t come cheap with an MSRP starting at $11,000. One primary concern for them in this heating battle is how to maintain quality and be cheap at the same time.

Source: World Car Fans