The car manufacturers in India are competing not only to make their vehicles more fuel efficient, but also to create low priced cars. Hyundai is planning to create a new mini car, the price of which will be starting at about $3,500. Right now their cheapest car in India is Santro Xing, which starts at $6,150.

At 2008 Geneva Auto Show the president of the Hyundai Indian division, H.S. Lheem, explained the company is creating a new low-cost vehicle for India and China, but it will take about 4 years to complete the plan they have.

Several weeks earlier the other automakers announced about their plans. Renault and Nissan plan to join their efforts and together with the Indian company, Bajaj Auto, will create a miniature car by 2011, the price of which will start at only $2,500 to the wholesale customers. The retail price won’t be much higher. The new car will cost about $3,000 at the dealerships.