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.

TATA NANO -World's Cheapest Car

The hype surrounding the price and prospects of the Nano has created such an aura of excitement about this minicar that it could put a Ferrari’s crowd pulling capability in the shade.

The roominess of the Nano is what hits you as soon as you get in and though the interior is very Spartan, the centrally-positioned instrument panel and relatively modern dashboard layout makes for a good first impression.

Crank the engine and another surprise awaits. Unlike the widely rumoured, possibly expected, genset or autorickshaw sounding engine, what the Nano sounded like is actually a proper gasoline engine. Sure, there is a mild burble as you start accelerating, but there is very little difference one can discern even in the non-air-conditioned standard/base variant.

The four-speed gearbox is cable operated, yet shift quality is very good. Frankly, the Nano’s gearbox slotting is precise and even better than the sticky, mushy shift feel in the Indica.

The Nano’s focus on fuel efficiency from a seemingly puny engine does not show very much on its acceleration abilities.

On long, straight stretches of tarmac, the Nano accelerates impressively and reached a top speed of 105 kmph.

Compared to its very impressive, modern design on the exterior, the Nano’s score would be a notch lower when one considers the interiors’ overall finish quality.