Why are the cars in the US cheaper than in India?

Where are the cheap new cars in the US? (Ala Tata Motors $2000 car in india)?

• I just heard something about an indian(?) car company, TATA motors, coming out with a $2000 new car. Where are the new cars in the 2-10k range that are available for purchase in the US? Where is this low end market, or why isn't it there?

• Answer:

  ...2007 Chevrolet Aveo5 Base Invoice Price: $9,445 - $11,208 * Base List Price: $9,995 - $11,860 * "Chevy's hot-selling subcompact returns for 2007 with a redesigned sedan model and a carryover hatchback model. The Aveo sedan, available in LS and LT trims, receives both interior and exterior restyling for this year. Not only is the sedan larger, but it also features an expanded list of standard equipment, including an iPod jack in the dashboard, cruise control, and power front seats. Available upgrades include a six-disc CD changer, a power sunroof, heated outside mirrors, and steering wheel-mounted controls. The Aveo hatchback, available in LS and SVM trims, has no major changes for this year. Both models are powered by a 103-hp 1.6L engine that is said to offer a 35 mpg rating on the highway." Note that this car has all sorts of extras that Americans consider to be standard options. It also includes things such as air bags and an automatic transmission. The Tata Nano, on the other hand, comes with just the basics: "The standard version comes with the vital features: brakes, a four-gear manual transmission, seatbelts, locking, wind-down windows and a steering wheel. A small boot could store a duffel bag. It lacks a passenger-side mirror and has one windscreen wiper. The deluxe version will have air-conditioning while extras such as a radio and an airbag could be added. There is no power steering." For the same price in Auto Trader you could have a: — 1993 Land Rover Discovery TDI S, 174,000 miles, 7 seats, towbar, alloy wheels, sunroof. Short MoT and tax — 1983 Porsche 944 Lux 2.7 FH, 2dr Coupe, 116,000 miles, 10 months’ MoT, 5 months’ tax, MP3 CD player — 1962 Triumph Herald 1200 Coupe, 70,000 miles, 2 doors, manual 4 speed, 3 owners, not much rust — 1996 3-door Vauxhall Calibra 2.0i 16v (trade) with 159,359 miles and equipped with ABS, adjustable seats, alloy wheels, central locking and driver airbag — 1998 Ford Mondeo 1.8i GLX, 5-door, 99,000 miles, two previous owners, ABS, adjustable seats, air conditioning, CD player and central locking Most Americans really don't want that basic a car, so the market really doesn't exist in the U.S. for a truly inexpensive new car when for a similar cost you can get a used car with all the features you could want. It is possible that Tata may be able to start selling the Nano in the US if their bid to buy Jaguar and Land Rover from Ford Motor Co. comes through. However, safety refgulations would mean an additional cost for US models, so it will no longer cost $2500. On the other hand, in India many folks load an entire family on a single motorscooter, so the Nano is a definite improvement over there. The Nano has been nicknamed the “People’s Car,” and in many ways is much like that other "People's Car," the original 1940's and 1950's Volkswagen Beetle. Ford India, Volkswagen, Toyota Motor Corp, Honda Motor Co and Fiat have also said they are looking to build small cars that will increase their sales volumes in India. Again, they are trying to tap into a market that heretofore has not owned cars at all.