You can very well imagine which way the Indian small car market is heading. Bajaj Auto, India's second largest bike maker took everyone by surprise by unveiling its small car “Bajaj Lite” on Tuesday (January 8,2008).  The unveiling of Bajaj’s small car has taken the industry observers by surprise as all the eyes were set on the much awaited Tata Motor’s small car (touted as People’s car), set to be unveiled on January 10, the opening day of the Auto Expo 2008. 

Bajaj officials said that they plan to develop the small car in collaboration with Renault and Nissan, which is currently partnering Mahindra and Mahindra for their mid-segment Logan. Bajaj Auto says it will start the production of the small car in the next 2-4 years. The price of the Bajaj small car has not been disclosed but it is certain that the car will not be for Rs 1 lakh (Rs 100,000). Rajiv Bajaj, Bajaj Auto managing director, told reporters in New Delhi that they (Bajaj-Renault) plan to have the car ready in two-four years. Though the company declined to give any specific price of the small car, Carlos Ghosn (President and CEO of Renault and Nissan) had earlier stated that Renault was looking for a $3,000 small car in India.