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India: The next Detroit?

Automakers worldwide ramp up production on the subcontinent.

But she chose to be swayed by price and chose the Nano, India’s homegrown small car produced by Mumbai’s Tata Motors. The Nano, a $2,500 air conditioned, gasoline-powered cheap wonder, hit Indian roads in March.

Dr. Kanth now bumps along the rutted roads of her town in her sporty Nano. She says she is thrilled with the design and fuel efficiency of her new acquisition.

Ford is only the latest in a long lineup of carmakers scrambling to build, sell and export small cars out of India. And it's not only small, combustine engine models that are drawing attention.

Last week, General Motors’ Indian subsidiary announced that it had tied up with Bangalore’s Reva Electric Car Company to jointly develop and produce electric vehicles for the Indian market.