Shanghai, Korean auto giant Hyundai Motor is planning to launch a small car in China and India by 2011 with a price tag of $3,500, which the company said is to meet the demands for small cars in the two fast-growing large markets and other areas.
"We do not have immediate plans to fight with Nano, but are planning a new small car keeping in mind consumers' demands in India as well as China. Pricing is crucial for us as we want to deliver an affordable product to our customers," Hyundai Motor India Managing Director and CEO H. S. Lheem said on Friday. The project is now in the development stage in Korea. He said there was demand for a smaller model than its Santro being produced in India. The new small car will be first made in India, both for the local market and for export.

Earlier in January, Tata Motors had launched world's cheapest car 'Nano,' priced at $2,500. India's second largest two-wheeler maker Bajaj Auto also joined hands with Renault-Nissan to launch a small car in India by 2011 that would be priced at the same level of 'Nano.' Chinese carmaker Chery's QQ hatchback model is priced at $4,800, making it the second-cheapest car in the world, after Indian firm Tata's $2,500 Nano model, and it has been well received in domestic and global markets.

Hyundai is currently exporting i10, Santro, Getz and Accent small-cars in 95 countries worldwide. The Korean automaker has plans to introduce a $5,000-less economy sedan into China in 2010. However, Beijing Hyundai, Hyundai's joint venture with Beijing Auto, does not plan to bring the smaller hatchback Santro. It remains to be seen whether Hyundai will produce its $3,500 small car in China as well by 2011.

China and India, two largest emerging markets, have over one third of the world's population, which represents huge potentials for global automakers.