You may have already heard about the Nano, a new car unveiled in India last week. Manufactured by Tata Motors, the subcompact will sell for about $2500 USD.

So far the Nano is only available in India, but according to a statement from Tata Motors, plans are currently in development to export the vehicle to other nations.

When I first heard about the Nano, I immediately jumped to the conclusion that it would fall below Canadian standards in emissions or safety or both. But Ratan Tata, Chairman of Tata Motors insists this isn't so, and the Nano meets, and in some cases exceeds, those standards, both in India and abroad. If this is true, then there are really very few barriers to exporting this car.

If this vehicle is coming to Canada, then I think we need to consider how this will affect the number of write-offs. Is an insurer going to authorize a $2700 USD repair on a $2500 USD vehicle? Not likely!

However, it's entirely possible that the Nano will sell for significantly more in North America than in India. India's Gross Domestic Product (GDP) is $3,800 USD per capita. Canada's per capita GDP, however, is around $35,700 USD, and prices here are correspondingly higher. This may raise the price of the Nano significantly, which would make repairs to them a more attractive option.

We're not quite out of the woods yet, though. Many major automakers are jumping on the bandwagon, and have plans on the drawing board for budget subcompacts of their own. I think this is a definitely an issue that bears watching.