But the real threat from the Nano, they say, will begin only when it launches its diesel version, which might be more expensive but is expected to draw in large volumes.
Tata Motors is expected to produce around 100,000 cars in the first year and will ramp up capacity once its plant in Gujarat goes on stream by October this year.
Image: Ratan Tata with Gujarat's Chief Minister Narendra Modi after Tata Motors moved the production facility of the Nano from West Bengal to Gujarat. | Photograph: Amit Dave/Reuters
Also read: Nano plant at Singur: Chronology of events