Unlike other emerging markets, such as China, the Indian passenger car market and industry has followed a pronounced small car path. The latest expression of this development is the introduction of the low cost car Nano by TATA. While India’s small car path initially only involved the production and sale of foreign designed small cars in the domestic market, India is developing towards a global production and R&D hub for small cars. It is this development this paper seeks to understand. Specifically, the paper explores the emergence, consolidation and challenges to India’s small car path in the passenger car industry
