Geely Looks to Undercut Tata With Worlds’ Most Inexpensive Car

A number of automakers have been working to trump Tata Motors’ Nano in terms of price, but another contender — hailing from China — has just joined the fold.

According to Indian news outlets, Geely International — the newfound owner of Volvo Cars — is working on launching a low-cost automobile in the Indian market. Although the Nano already retails for an affordable $2465, reports suggest the Geely offering could undercut Tata’s price point by more than $200 when it goes sale in 2012.

The car itself may closely resemble the Gleagle IG concept Geely first showcased at the 2009 Shanghai Motor Show. Unlike the Nano, the show car seats only three, with the driver placed in front of both passenger positions. Although the car is still billed as a concept, a production version would likely resemble the show car, albeit we wouldn’t be surprised if the finished product eschews the fanciful gullwing doors.

Although Geely believes there is money to be made in the segment, it has its work cut out. Nissan is already working at a sub-$3000 offering for India, while Suzuki is hard at work — possibly with new partner Volkswagen — to develop a small-car offering that succeeds the company’s Maruti 800.