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A car is an expensive purchase and you can find in every country of the world cheap and expensive models. However; if you are searching for the cheapest models; you will find the best deals in Asian. The reason is quite simple: the costs are much lower. Emerging markets, and probably is India the number one in these markets, offer cheaper engineering and manufacturing and also materials.

The 5 cheapest cars in the world are made in Asian. The Tato Nano, a model produced by Tato Motors in India is still the cheapest one with a price of only $.2.500 for the basic version.
Of course this is not a model which you can compare with the expensive models of some other brands because this model has only the necessary features for driving on the road.

However the prize of this car is very low; the Tato Nano is a real car with four doors, a 33 horse-power engine and can reach a speed of 80 mph or 110kph. Of course this car doesn't have all the features which are standard for the usual cars but the reason that such cheap cars are manufactured now can be found that many people in these countries otherwise can't afford to buy a car. The loans are very low compared with the western countries and these cheap cars make it possible of buying a car.

The five cheapest cars of this moment are all made in India and China but the Tato Nano is the only one which can be bought with only $2.500. Other models like QQ3 of Chery Automobiles in China, M800 of Suzuki-Marati, Merrie Star in India and S-RV mini Suvi of Geely Automobiles in China can be bought between $5.000 and $6.000 which is more than double of the Tato Nano in India and much money for people in these countries.

However, there are not many cheap models at the moment; the car industry will change very soon. There is a high demand for such cars in the whole world. The only problem is finding out how to reduce costs and this can probably only with cooperation with emerging markets like India, China, Korea and many other Asian countries.
A disadvantage of producing cheap cars is that there will be a high increase of the quantity of cars and this will lead to higher fuel prices which can have a negative effect on the growth of the economy in Europe and America.

Of course there are also expensive models in Asian but these can't be bought by many people in this continent. Nissan, Toyota, Honda, Mitsubishi and many other car brands have cars in different price ranges. These brands are made in Japan and this is one of the counties in Asian with a high living cost. However, many things are expensive there; the car prices are cheap compared with western countries. It is possible to buy a car for one million yen which is at the moment around 6.000 or $9.000. The greatest problems for people living in Japan are the high expenses for taxes, car insurance and maintain of your car.

In general, we can say that prices of cars in Asian are lower than the western countries but if you compare the living expenses and the money they earn; it is even harder for them to buy a car than people living in other continents.

Learn more about this author, Erik Van Tongerloo.
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