"It (Nano) increases the market size but it will not cut into the market of people who are buying cars that are in the Rs two-lakh price category. A person who buys a car for Rs two lakh, I believe that there will be very few people who will buy this (Nano) car. It is a new segment," Maruti Suzuki India Chairman R C Bhargava told a TV channel.
He said people who could not buy Maruti 800 would buy Nano as the price difference was huge.
Bhargava said more than the existing entry level cars, Nano will affect the two wheelers.
"So many people who would have remained with motorcycles will but the Nano. Those who could not buy M800 will but Nano. But a person who buys a Maruti 800 or an Alto, I think there will not be a high percentage that will but Nano instead," he said.
Casting doubts over maintaining the Rs one lakh tag in the wake of rising steel prices and other input costs, Bhargava said, "The one lakh price will be difficult to maintain."
Asked if MSI planned to come out with a competitor to Nano, he said, "Let me make it clear that there is no plan to develop a one-lakh car at Maruti."
Commenting on the changes in MSI after government exited the company with Suzuki becoming the majority shareholder, Bhargava said, "It has does affect the style of the management".
