Italian automaker Piaggio, the maker of Vespa scooters, is planning to launch an eco-friendly mini-car in India that will rival the Tata Nano.
The prototype was revealed at the Milan bike show, with the finished product scheduled to be launched within the next three years.
The NT3 car is expected to be powered by a 300-500cc engine and could seat three passengers. It is thought that manufacturing will take place at Piaggio’s Baramati plant near Pune, currently home to Piaggio's cargo and passenger three-wheelers, as well as its four-wheeler mini pickup range.
The company is also due to move production of its Vespa scooters to the Baramati facility by 2012.
The NT3 will also be exported to Europe and South America.
The news follows the recent launch of Piaggio’s Ape mini pickup a few weeks ago, of which there are already plans to make a passenger version.
Car penetration levels in India are still less than 10 per 1,000 people, making the affordable mini-car an attractive space for automakers. In addition, public transport systems are still not sufficient to meet the needs of people in smaller towns and villages.
The bestselling mini-car in India is currently the Maruti Alto, which averages 23,000 units a month.
There has not yet been a decision made regarding pricing of the NT3.
