With Tata’s runaway success with Nano and increasing demand for affordable small cars for middle-class Indians, General Motors India, the Indian subsidiary of world’s second largest car maker GM, has started the process of research and development (R&D) to make its mark in the small car segment of the country.

The company will work in partnership with its Chinese partner SAIC to come-out with the best possible route to make a low-cost fuel-efficient car for the Indian market. To reduce costs the company will do a major chunk of manufacturing input in India.  Tata Nano, the current ruler in the low-cost car segment will face stiff competition from this car.

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