Mahindra Renault Yeni - Competition to Tata Nano

There are some unconfirmed reports that Mahindra will launch a small car under Rs. 2 lakh soon for combating the Tata Nano phenomenon. The car will be produced in association with Renault-Nissan and will be called Mahindra Renault Yeni.

Two wheeler maker Bajaj Auto, is also working on a small car as an alternative to Tata Nano named Bajaj Lite and is expected to launch it before 2011.