It may have entered bankruptcy protection in the US, but General Motors still has ambitious plans for India. The auto major is planning to develop a small car which will be its cheapest globally, at a possible price tag of under Rs 2 lakh.

Nick Reilly, GM Group VP, told reporters that the company was looking at developing a car from India that would be positioned below the ‘Spark’ mini car.”I would say we are studying that… and (we) do think there is an opportunity for something below the current mini car offering Spark,” Reilly said in a conference call from Shanghai.However, it would “not be a Tata Nano equivalent”, he added.

While there is no independent confirmation, it is believed that the company is targeting a price tag below Rs 2 lakh for this car and apart from India, it could well be positioned in similar foreign markets like Latin America, Eastern Europe, Africa and even possibly China.