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Chinese Automaker Geely Takes On Tata Nano From the New York Times, May 25, 2010; By Jonathan Schultz

Geely introduced the Gleagle IG at the Beijing auto show last month. Since its launch in India in 2008 at the headline-friendly price of around $2,200, the Tata Nano microcar has provoked violent manufacturer uprisings, disquieting safety reports, withering scorn from environmental groups and back orders through 2011. Major automakers were caught flat-footed,and are only now remapping the bottom of their product lines to accommodate a super-low-price People’s Car. The latest is Chinese automaker Geely, which recently made some noise buying Volvo and produced its version of the famous London cab. At the Beijing motor show last month, Geely introduced the Gleagle IG concept, a subcompact that featured styling as distinctive as the Scion iQ, two-plus-two seating and an expected price of $2,250, according to The Economic Times.

That price would undercut the Nano’s current range of $2,700 to $3,800. The IG presages a Nano fighter that Geely will bring to Asian markets in 2012. Details are few, but Car Trade India reports that the IG variant will come with a 1-liter gasoline engine with an output at 70 horsepower, doubling the Nano’s 35. Gas mileage should consequently be lower than the Nano’s, reports the China Car Times, also owing to the car’s steel body versus the Nano’s extensive use of plastic. A coming mini from Hyundai as well as a collaboration between Indian manufacturer Bajaj and Renault-Nissan are planned to enter the market at the same time as the IG. For the Beijing show, Geely also provisioned an IG with a photovoltaic-paneled hood, hinting at the builder’s ambitions for a battery-powered model. Tata has not committed to an electric Nano, but a diesel is expected by year’s end.