Delhi Vs. Detroit?

http://www.newsweek.com/id/192145

By Daniel Pepper | Newsweek Web Exclusive
Apr 2, 2009
Will Delhi surpass Detroit? Probably not. But while GM and Chryslerscramble to stay afloat, India's automakers are kicking into high gear. Last week, Mumbai's Tata Motors began taking orders for its much-anticipated—and much-hyped—Nano. At $2,000, the five-seat, air-conditioned, gasoline-powered vehicle gets about 67mpg and is being billed as the world cheapest car. With its low price and high mileage, analysts expect the car to be a global bestseller. And while Detroit retools to create electric vehicles and hybrids, India already produces the world's bestselling electric vehicle, the Reva.

The Reva has garnered far less publicity than the Nano, but the Bangalore company of the same name says that the 3,000 vehicles it's sold since 2001 have racked up more than 34 million miles in developing nations across Asia and South America. The odd-looking, eight-foot-long, two-door hatchbacks are also gaining ground in Europe, where they're a favorite ride among green-minded celebs like Kristin Scott Thomas and Jade Jagger. The base model Reva sells in India for about $6,000 after tax breaks and subsidies, but a newer version (the Reva L-ion) is due out by June that will be equipped with more efficient lithium-ion batteries and a solar panel affixed to the roof. The price: $14,500. With taxes, delivery surcharges and other costs likely to boost that price outside of India, the Reva will still be far more affordable than the $40,000 base price of Detroit's new contender, the Chevrolet Volt, which is expected to go on sale at the end of next year.