In India, two-wheeled scooters and motorcycles are a very popular way to get around. Cars are out of the price range for many buyers, and until the Tata Nano comes out, will remain that way. Other factors are putting a crimp on the spending of many Indian households, including a huge inflation increase and the surging price of fuel. All of these things are likely to have a negative impact on the automotive sector. Some, though, believe that the two-wheeled market is set to pick up some of the slack. In fact, Hero Honda, the largest manufacturer of motorcycles in India, believes that there is a chance it could gain market share in these turbulent times. Some families that would otherwise purchase a second car may choose a smaller motorcycle or scooter instead in an effort to spend less money on the initial vehicle purchase and when keeping it filled with fuel. Similarly, scooter sales have risen dramatically in the United States as buyers find it more difficult to find sufficient credit to purchase an expensive new car and gas prices remain over $3.00 a gallon.

[Source: Business Standard]

Motorcycle, scooter and moped manufacturers in India are worried. Since Tata announced their ultra-cheap Nano, the two-wheeled industry is abuzz with worry that the populace will quickly abandon their old single-track vehicles for the safety and convenience of a four-wheeler if the price points get too close. This is a rational concern, and it is exactly why Tata's created the Nano in the first place.

In an effort to persuade buyers to stick with their bikes, the major manufacturers in India, including Bajaj, Honda and Kinetic, are all working on natural gas options for their various offerings. According to this article, each of these companies has contacted Energtek, a leader in absorbed natural gas (ANG) technology for help in implementing the conversion process. The advantages to using the ANG lie primarily with price, however there are also eco-benefits to be had, as natural gas burns cleaner than other fossil-fuels. We have to wonder, though, what would stop companies like Tata from using similar technology in their low-priced automobiles.

Related:

• VIDEO: Live reveal of the $2,500 Tata Nano
• Here's the $2,500 Tata Nano, the Indian peoples car

[Source: Red Orbit]