Hyundai India's managing director H.S. Lheem told reporters that his company has no immediate plans to fight directly with the Nano, while dropping hints that the small car would be launched in other countries also.
Hyundai plans to begin mass-production in the "early part of next year", but no other details are currently available.
The Korean company is currently the 2nd largest car manufacturer in India, coming in behind Maruti Suzuki India. Hyundai India last year exported just above 100,000 cars and expects to hit 200,000 this year.
Hyundai Motors will also build luxury buses in India with technical assistance from UK-based Caparo group.