Cheapest Car Ever From Tata (An Indian Company)

[Muhsin]

Tata Unveils The Nano, Its $2,500 Car
Ruth David, 01.10.08, 5:08 AM ET
Google News

NEW DELHI - Tata Motors Thursday unveiled what will be the cheapest car to hit the road anywhere in the world, amid much fanfare as thousands thronged for a peek at the vehicle that Tata hopes will coax habitual customers for two-wheeled vehicles to move upmarket.

At the Auto Expo in New Delhi, Ratan Tata drove the Nano, which the company calls the People's Car, onto the stage and said it would still have the price tag of 100,000 (approximately $2,500) rupees promised four years ago, though commodity prices have since risen. "That's because a promise is a promise."

But the vehicle will make a profit for the company, he emphasized. Tata Motors' shares were up 1.7% on the Bombay Stock Exchange, at 783.50 rupees.

The four-door vehicle, which can comfortably seat four people, has a 33 brake horsepower, 624 cubic centimeter engine in the rear. The basic model has no air conditioning, power steering, antilock brakes or electric windows, though a couple of deluxe models will offer air conditioning. It also has a single windshield wiper and no rear seat belts. The car will be ready for the market later this year.

As auto companies roll out smaller, cheaper vehicles to lure more customers--Volkswagen (other-otc: VLKAY - news - people ), Hyundai (other-otc: HYMLF - news - people ) and Bajaj Auto (other-otc: BJAUF - news - people ) also showcased small car concepts at the New Delhi auto show--there is concern over how the crowded city roads will handle the influx, not to mention an increase in pollution levels, with thousands more such vehicles hitting the roads.

Tata brushed aside pollution concerns, saying the Nano was designed to meet all safety standards and emissions laws. The company also plans to launch a diesel variant. The car is expected to give a mileage of about 20 kilometers (50 miles) to the gallon.

At Tata Motors' Auto Expo exhibition space, business executives from companies ranging from BMW to Volkswagen to Suzuki (other-otc: SZKMF - news - people ) and Hyundai were spotted craning to get a better view of a vehicle that is priced at half the amount of the cheapest car on Indian roads currently.

A Japanese automobile executive who declined to be named conceded that the price would be "difficult to match." The nearest competition is from Maruti Suzuki, whose automobiles now account for half the sales in India. Maruti, which also released new models at the exposition, said it would not cut prices or launch smaller cars to take on the Nano.

As Indians become wealthier, with the economy registering growth rates of around 9% for the third consecutive year now, Tata Motors (nyse: TTM - news - people ) is hoping its ambitious new launch will tap into the rising ranks of consumers looking to own a car. Automobile sales are expected to double to 2 million annually by 2010. Motorcycle and motorbike sales, by contrast, are experiencing decelerating growth.

At the Auto Expo's Tata booth, housewife Simmi Sahani said the vehicle looked attractive at first glimpse. Sahani, whose hotelier husband already owns two cars, said she wouldn't mind buying the Nano for her daughter. "She's 16 now and learning driving. I'd like her to drive to school and later college." But she wouldn't want to take the vehicle out for long drives. "We'll use the Nano for trips to the market or other places nearby, instead of a scooter."

[arubuta]

they have done a nice job
but lets see it durability, how easily it can be maintained.
u know how indian medicines are, their products are somewhat of low quality

and we have not heard about its carbon-di-oxide emissions, you know how these emissions are being reduced, to counter global warming, as they say.


well....we know about the relation between prices and quality, and from india

I'd say great job for tata

[Dan-Borno]

Arubuta, forget about all these technicalities of emision or whatever,
the problem will now be on our marketers, they will bring the car here
and before you know it, the price will sky rocket and beyond the ordinary
man's ability to purchase.

Irin motocin cotonou da muke hawannan ya ishe mu if we can get an
alternative.

[Muhsin]

You see the point am afraid of DB. When we were discussing about it (that car) with friends at home, what firstly came up was; would the price be as its originally priced ($2,500) in here in Nigerian markets?. We calculated it as 300,000N plus but here...sai dai yadda suka ce, period.

[arubuta]

Arubuta, forget about all these technicalities of emision or whatever

definitely u don't know about this "technicalites"
it seems you don't know about the issue much. if you've been to kano nowadays you'll know about how this ACHABAs or OKADAs are amazingly changing the colour of our atmosphere, to a hazy one. What i fear the most are illnesses due to this, lungs and skin cancer. (ALLAH YA KIYAYE), another unchecked car can increase it even if its minute, talk less of the other environment issues.

Amma fa this gives me a topic to post, about the achabas. Any way i'm not an environmentalist.

but DB i too agreed with u about this Cotonou cars, we are turning Nigeria into a junk yard.

Muhsin, don't bother, if that car comes to nigeria, you should definitely know that its price is going to double. who would sell you a brand new at 500,000  Naira. not a nigerian business man and i am sure not an indian. i just hope the price remains reasonable, a price that a common civil servant can buy without Takura.

[Muhsin]

Muhsin, don't bother, if that car comes to nigeria, you should definitely know that its price is going to double. who would sell you a brand new at 500,000  Naira. not a nigerian business man and i am sure not an indian. i just hope the price remains reasonable, a price that a common civil servant can buy without Takura.

Ka gama addu'a. Any way, why should I bother myself? I don't give a damn how so ever the price toll since am not not gonna buy one. Lol ;D

[gogannaka]

Muhsin ba ka son wa kanka ci gaba ne?

The car as much as it's cheap, is ugly.
Looks like a shoe (canvass) with its small small tires.


God forbid you crash with it!

But still for 500k many many ppl will buy it.

[arubuta]

hmm if u see the car, it can explain alot.
i tot dat was a toy!! 8)
anyway GGNK raised the issue of safety. well the tires too, imagine them on Nigeria's bad roads, just like fillin stations we'll need tire repair stations.

[Muhsin]

Muhsin ba ka son wa kanka ci gaba ne?

Am just joking Goga. Amma ina fatan zan hau car wadda ta fita, insha Allah.

Ni kuma ta dan birgeni fa.

[gogannaka]

Wai yaushe motar za ta iso ne?
Ko dai ruba aka mana ne kawai?

[Muhsin]

Kai, hakane fa, GGNK. Har yanzu shiru kamar an shuka dusa. Ba alamar wannan motar on roads.