Opportunites & Challanges faced by Low cost cars.

Nice article deepti, and further good review sort given by malikireddy...thanks for the elaborate view from your side. i guess low cost cars are the next big thing..in India for sure these are the ones which are still ruling the roads, and now to go with the Nano, i guess we will be fighting for parking space next.......

Hi everybody ! Here seems to be the whistles blowing again!! Interesting!! 

@ Ms.Deepthi 
Thank you for the topic , here we should really magnify things to clarity, Macroscopic this picture is right as you said. Microscopically things in my eyes are different. 

Question 1: 
What, exactly, is a low-cost car? 
The Dacia Logan, Fiat Palio, Tata Nano, Maruti 800, Lada Zhiguli? Or even a five-year-old VW Golf?

Well to drive the point i need to mention that we all understand difference between similarity and equality. Once we agree upon that , Pin pointed to be : TATA Nano does not fall under low cost cars , but under ULCC. That means well below the available Low cost cars division. And coming to Bosch's claim , the PSA( Peugeot) and RSA(Renault) are already coming out with 7000 around Euro based car with OEM guaranteed ESP and ABS, and shortly with Double clutch transmissions( new technology of gearboxes priorly used in race cars and F1 with foettinger clutches, now also available with Dry clutch). Here again we see the difference , more functionalities more price , and the suppliers like Bosch are not definitely people who maintain Modularity ( you name the functionality ,they integrate and relate the functionality to one other using the dependency map , well well, thats their technique they have their technical ability and capability and tons of millions in research already pumped (Dont ask me from where?) so more functionality more cost. 

One more thing: 
As the developed world stagnates in terms of car sales, emerging markets are driving growth. Producing cars that suit the needs of consumers in these markets becomes imperative for the car industry.

Well , i have some more points to add here, its right market shifts do happen towards emerging markets. But believe me developed countries in place have different choices too. In Germany, France, Netherlands no one likes big and bulky Hummers , reason for failure of GM in bulk models and Landrover's failure. So its in my opinion Low cost cars production will also be high here in Europe especialyl to supply to countries like Poland, Russia , Ukraine, Romanien, Hungary and also to Netherlands ( where you not even find a single Automotive OEM) -> So sorry again , Developed world is not getting to stagnated but changing its lanes , in Germany already there is a approved amount of 2500 Euro for giving up a old car which is above 10 yrs and getting a new one , where by better technology and standards and less tax people need to pay. So the high quality vehicles with life greater than 10 or 15 yaears are also endangered. But this is still going on in the name of immediate measures to promote auto industry out of recession. Can we here say , consumers requirement will be long lasting and durable wishes or requirements ? or short term based requirements , like new town , new position , new car?
Finally , i didnot get the equation of low price for consumer driving down the costs for the manufacturer which can maiximise the profits. 

Then what about TATA Nano case ? -> The competition for this car will be it colleagues termed as ULCC.