Tata Nano cutting down India car market

Tato nano is yet to hit the Indian car market but the effect of Nano price can be seen in the market.
Tata nano will cost somewhere around 1 lack + on the road and that’s why many giant Indian car companies are sloshing down the price of there mid range cars.
The  most affected market is used car market, where 4-5 years old cars are being sold as a cost of 1.5 lack.
Though the drop in the price is good for a normal user but from the company perspective its bad for them.
Nano strategy is one of it’s kind but used car business might give a stiff competition . This is as simple as this if it the same price of Nano you will get a second hand Fiat sienna, Ford Icon or such mid range car, what will be your choice?