14 mn families can now afford to buy a car

As the Nano made its commercial debut, automotive industry experts opined that the Rs 1 lakh wonder from the Tata stable can give an additional 14 million Indian families access to an affordable car, thus creating a niche segment.

"It definitely is a major milestone in the mobility paradigm for India and perhaps the world," Society of Indian Automobile Manufacturers (SIAM) Director General Dilip Chenoy told PTI, adding it has the potential to create a new segment of customers in the existing market.

According to market research firm Crisil, Nano's price reduces the cost of ownership of an entry-level car by 30 per cent and to below three times the cost of owning a motorcycle.

"This will make the car affordable to an additional 14 million families, including a section of 58 million two-wheeler owners," Crisil said.

General Motors India Vice-President P Balendran said: "While the Nano will not affect the other compact cars in the market, it will create a new segment of buyers, mainly those who want to upgrade from two-wheelers to four wheeler."