tata nano is in a totally different segment of the market. it's sad that it did not do as expected. i have driven it and i liked it a lot. though the value for money aspect is now questionable. hyundai eon is probably the most serious threat to alto because it looks and feels like a modern car. and seems to have been priced right. it the base model priced at Rs. 2.5 lakhs has an AC, it would become a solid alternative to Alto. power steering in the base model looks like a toughie though. from what i have read, hyundai would have six different variants.
is that really a problem these days? i thought it was an issue with cars running on a carburettor. cars today have much better and efficient engines and the AC units are also not that heavy on the engine.