The industry today welcomed the commercial launch of world's cheapest car, Nano, by Tata Motors and said it will boost domestic automobile industry and redefine entry point price for the entire global passenger car industry.
"Nano has shown what India can achieve in terms of innovation as also our capability in frugal engineering and design," industry body Ficci said.
It would also set precedent for other companies and service providers to take advantage of the huge potential that the "bottom of the pyramid" segment offers, Ficci President Harsh Pati Singhania said.
Assocham Secretary General D S Rawat said, "It will force other car manufacturers in the smallest segment to introduce such products at lower price ranges, which will be a good sign of growing competition."
However, he said the people's car would put Indian roads under severe pressure to accommodate automobiles' growth.
"India's national highways and roadways are still not adequately geared up to accommodate four-wheeler growth... The roads will have to be widened...," Rawat said.
CII said the long-awaited world's cheapest car would boost optimism in the market as demand is expected to skyrocket.
