LEAD: Global carmakers head to India show, Tata Nano rival revealed

Jan 3, 2012, 14:49 GMT

New Delhi - More than 1,500 carmakers from 24 countries are to participate in India's bi-annual auto show, due to open this week with a focus on fuel-efficient technologies, organizers said Tuesday.

Meanwhile, Indian manufacturer Bajaj Auto unveiled a low-cost car which is expected to compete with the Tata Nano, the world's cheapest car.

The week-long Auto Expo 2012 in New Delhi, to kick off Thursday, is to see the launches of 10 new models of cars, two-wheelers and trucks as manufacturers vie for a share of the Indian market, where over 15 million vehicles are sold each year.

Companies from Germany, China, France, Japan, Italy and Britain have confirmed their participation, expo chairman Rajive Kaul said.

The country's main auto show expects to attract half a million visitors and boasts a display area of 115,000 square metres, he said.

Despite a slowing of economic growth to 7 per cent this year, the Indian auto market has grown by 13 per cent.

International attention was also focusing on the Indian market because developed markets were stagnant or declining, said S Sandilya, president of the Society of Indian Automobile Manufacturers.

'India is one of the few markets in the world which is growing and also has a vast growth potential in the years to come. Therefore, the world is looking at India to drive future global growth in the auto sector.'

'The show will position India as a champion of green mobility, with a focus on alternative fuels, electric and hybrid mobility, that is a national as well as a global imperative today,' Sandilya said.

Meanwhile, Bajaj said its 200 cc RE60 would deliver an 'amazing' mileage of 35 kilometres per litre of fuel and emit just 60 grams of carbon dioxide per kilometre, according to the company.

'In the RE60, we believe we have an excellent solution for the mobility challenges arising from the rapid urbanization of India,' managing director Rajiv Bajaj said.

The car's price was not revealed but auto experts said the car could be competition for the Tata Nano, currently the cheapest car in the world at 140,000 rupees (2,630 dollars).

The Nano, launched in 2009, with a 624 cc engine, gives a fuel efficiency of 25 kilometres per litre. But Nano's sales have failed to pick up with analysts blaming poor marketing, technical problems including some engine fires.

The RE60 has a top speed of 70 kilometres per hour and will be produced at Bajaj's plant in Aurangabad in western India.

The car will be launched this year and media reports said the company was aiming to launch it in India's southern neighbour Sri Lanka first.