India is definitely a small car market and that holds true even when it comes to premium small cars. Fiat introduced its Fiat 500 in the Indian market and has sold about 65 models in the country so far. Looking at Fiat’s performance, there was definitely scepticism in the market about takers of super-premium small car models in the country. However, the scepticism did not make Volkswagen defer its plans to launch VW Beetle in India. It introduced Beetle at Rs. 20.5 lakh and received an over-whelming response. Volkswagen has so far sold more than 240 Beetles in the Indian market.

Volkswagen launched its small car hatchback model Polo earlier this year and the car. The model received a warm welcome from the Indian customers but Volkswagen has been finding it tough to meet the demand from the Indian market. However, that does not keep the company from innovating each day. Volkswagen has already started working on a brand new Polo model in German which will have changed exteriors and re-furbished interiors as well. The model will be powered by the same engine as the current model but the design will be sleeker and less angular.

Fiat India is planning to introduce the CNG variant of its small car model Punto in India. The company is expected to bring the model to the Indian market in the Active Variant only It has not specified the timeline of the launch or its final details. The model was displayed earlier at the Delhi Auto Expo 2010 in January this year.

Toyota Motors Corp and Tesla Motors from US formed a partnership last week and now a joint press release from both the companies states that both the companies have agreed to work together on a new electric RAV4 that will be powered by Tesla technology. The models will be available in the US market in 2012 but Tesla will deliver the prototypes for consideration before the end of this year.

Fiat India is systematically strengthening its foothold in India. It sells its models through Tata Motors dealerships to reach out to a large base of customers pan-India. It is also phasing out older models and introducing new models and their different variants. The company has now decided to phase out its compact hatchback model Palio from the Indian domestic market. The model has been consistently showing declining sales since more than past one year.

Tata Motors announced on Friday that the new Nano model will be costlier by up tp Rs. 6,000 though the price for the first one lakh customers will remain unchanged. The base variant of the Nano had been launched at Rs 1.23 lakh at showrooms in New Delhi while the top-end cost Rs 1.72 lakh. The quantum of increase will vary on different Nano variants resulting in price increase between Rs. 3,400 to Rs. 6,000. Tata Motors stated that the prices have been increased owing to the rise in the input costs.

Fiat India is ready to re-launch Fiat 500 in the Indian market. It intends to re-introduce the model to compete strongly with Volkswagen Beetle that has been quite a successful small car in the premium segment. Presently, Volkswagen Beetle still has an upper hand for all those wanting to experience super-luxury and yet want the convenience of driving a small car in the Indian urban driving conditions.

Toyota Motor Corp is planning to expand in the Indian market. It is ready to introduce its small car model Etios by the end of this year. The company is already in the process of completing the second phase of its investments in India and its expansion plans begins with its small car launch first.

Karantaka government has proposed to purchase 10,000 Tata Nano to replace the autorickshaws in the city. According to the government, the cost of both the vehicles comes to be nearly same and there are constant complaints about auto drivers. “There is not much difference in the cost between an autorickshaw and a Nano. “We continue to receive complaints about auto drivers. Moreover, their number in the city is insufficient compared to the population,’ said Transport minister R Ashoka.

Tata Motors and its recently acquired luxury brand Jaguar and Land Rover are slated to share their technologies to jointly develop engine and vehicles for the global markets. “Initiatives have been taken on joint development programmes for engines, vehicles and platforms, which would leverage skills of the company (Tata Motors) and Jaguar Land Rover, resulting in a synergy in operations of the company and its subsidiary,” Tata Motors said. According to the officials, it will lead to high savings for both the companies in operations as well as production.