With Tata unable to produce enough Nanos to keep up with demand, more automakers are gunning for its entry-level segment. Renault-Nissan is teaming up with its Indian-market partner Bajaj to produce a car that’s even cheaper to produce than the Nano. “I can tell you the cost of this car would be lower than any car today made in India,” Renault-Nissan CEO Carlos Ghosn tells Gasgoo, adding that a lower production cost wouldn’t guarantee that the new car would be priced lower than Nano. The Renault ULC, as the low-cost car is being called during development, will be available in India in 2012, by which time GM and Toyota could have competing models on the market. Ford’s recently-announced Indian market low-cost car, based on the discontinued previous-generation European Fiesta, will be positioned above the Nano. And that strategy also appeals to Honda. The Motor Company tells the WSJ that rather than competing directly with the lowest-cost segment, a sub-Fit (Jazz, as it’s known globally) hatchback will be introduced around 2012 to compete with Ford’s model. The Jazz/Fit currently sells for about $15,000 in India, leaving a huge window between there and the Nano’s approximately $3,000 price price tag.

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The Economic Times of India reports that Tata is considering offering knock-down kits of its Nano microcar and allowing franchisees to offer the world’s cheapest car as a private-label brand. The move is being considered as Tata’s dedicated Nano plant is still ramping up to its 350k unit annual production level, and the company is still having a hard time filling demand. Can’t you just see twelve-packs of Nanos at Costco?

I’m thinking about opening a car factory. A really small one. Tata would sell me their Nano in kit form. I’d have it assembled (using cheap Chinese labor, of course) and sell it as the Bertel car. Entirely possible. Tata may allow small car assemblers to put together its Nano and sell it under their own brand, India’s Business Standard reports via Reuters.

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Well, the “what makes an American car American” debate just got a little more interesting (and a lot more interesting than the “who ‘won’ the CTS-V Challenge” rigmarole). Automotive News [sub] reports that Ford’s Oakville, Ontario plant and GM’s Delta Township plant have ceased production of Flex, Edge, MKX, MKT, Acadia, Traverse and Enclave as supplier Rico Automotive is unable to supply key transmission components. The reason for the parts stoppage: labor violence… in India. Turmoil at Rico’s plant in Gurgaron (30 miles from New Delhi) came to a head on the 18th, when clashes between temporary workers and factory staff left an employee dead. Now GM stands to lose 7,200 units of production, while Ford admits “several thousand” units won’t be built over the next week. This striking illustration of how globalized the auto industry is, is causing some analysts to question the wisdom of using Indian suppliers. They argue that labor unrest like this is common in the subcontinent, compounding already-challenging logistical and shipping-cost issues. But GM and Ford aren’t exactly about to stop investing in Indian firms and production capacity either, since that market shows more growth potential than the US. One thing is for sure: there’s no such thing as an “American car,” let alone an “American car company” anymore. Government ownership notwithstanding.

An overview of what happened in other parts of the world while you were in bed. TTAC provides round-the-clock coverage of everything that has wheels. Or has its wheels coming off. WAS is being filed from Tokyo this week.

India‘s car sales up: Just like neighbor China, India reports rising cars sales for January. Most car companies registered positive sales despite the withdrawal of price rebate schemes, India’s Economic Times reports. Tata Motors continued its negative run, with its passenger vehicle sales declining by 9 percent.

Toyota losses spreading: Toyota’s parts arm Denso and four other Toyota Motor Corp. affiliates are expected to suffer group net losses for the year ending March 31 as the automaker’s drastic output reductions battered businesses along the supply chain, the Nikkei [sub] writes.

Hitachi lowers volume of auto biz: Hitachi considers cutting in half the number of 85 marketing and production sites handling automobile-related equipment, the Nikkei [sub] says. Hitachi group company Clarion has already decided to close a factory in Hitachinaka around the end of 2010 and keep just one domestic factory open. In the US, where Hitachi operates Hitachi Automotive Products (USA) Inc. in the state of Kentucky and three other production bases, two locations may be closed.

Mazda sees red: Mazda expects its first loss in eight years for this fiscal year due to damage sustained from a strong yen and a sharp downturn in consumer sentiment, the Nikkei [sub] reports. The Hiroshima-based company now expects a net loss of ¥13 billion for the current fiscal year through March, compared with its previous forecast for a ¥50 billion profit.

Ford moving to China: Ford Motor Company’s Asia Pacific and Africa region headquarters, will be moving from Bangkok to China, Gasgoo reports. Bangkok will continue to serve as Ford’s ASEAN regional headquarters. In 2004, Volkswagen AG and General Motors relocated their Asia Pacific regional headquarters to China.

Small getting bigger and bigger: Underscoring China’s move from big to small, SAIC-GM-Wuling, a Chinese venture of GM and leading manufacturer of mini-trucks and mini-vans in China, reported all-time high sales of 75,168 units in January, Gasgoo writes. The record sales were largely on the strength of Wuling Sunshine, which remained the best-selling model and saw its sales volume hit 1.4 million units by the end of January 2008.

Not a good start for Deutschland: Germans bought 14.2 percent fewer cars in January 09  than in January 08.  Saab (-60.7 percent), Chrysler (-53 percent), Land Rover (-51.9 percent), Nissan (-51.1 percent), Jaguar (-31 percent), Skoda (-30.7 percent), Mercedes (-30 percent), Porsche (-24.7 percent) and Opel (-22.7 percent) were the big January losers in Germany’s car market, Automobilwoche [sub] reports.  Ford sold 25.9 percent more. Smaller importers such as Hyundai (+50.8 percent), Mazda (+27.2 percent) and Lancia (+13.7 percent) gained. The trend goes from big to small.

Out with a Bangle: After 17 years with BMW, U.S.-born Christopher Bangle resigns as chief designer of the BMW Group. The Bavarians go Dutch with Adrian van Hooydon. According to Reuters, Chris Bangle is “one of the most well-known and controversial people in the auto industry.” Bangle was the object of multiple online petitions calling for his sacking. After his 2002 redesign of the 7 Series sedan, the vehicle was voted one of the 50 worst cars of all times by Time magazine, along with such other infamous models as the 2001 Pontiac Aztek and the 1998 Fiat Multipla.

India’s Tata has gone from darling to dumpling in just a year. The high profile Nano People’s Car project still hasn’t gone into production, and the $2.3b purchase of Jaguar and Land Rover now seems spectacularly ill-timed. Business Week recently covered the story with these great opening notes: “What a difference a year makes.”  India is in the throes of its own economic crisis; thanks to high inflation, high interest rates, tight credit markets, excessive corporate debt and a suddenly spending averse middle class. Pretty much like most places in the world, but a little different.

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