Thread: Tata Motors launches $2,000 Nano

Tata Motors is launching its snub-nosed, $2,000 (U.S.) Nano on Monday — a vehicle meant to put car ownership within reach of millions of the world's poor.

But whether the Nano will revolutionize the global auto industry — or turn around its manufacturer's fortunes — has yet to be seen. Other automakers will be watching closely to see how consumers respond to the car.

The Nano, starting at about 100,000 rupees ($1,980), is a stripped-down car for stripped-down times: It is 10.2 feet (3.1 meters) long, has one windshield wiper, a 623 cc rear engine, and a diminutive trunk, according to the company's Web site.

So far, the car will only be sold in India, although Tata Motors unveiled the Nano Europa, a slightly more robust version of the Indian model, at the Geneva Motor Show this month, with a planned launch of 2011. The company has no plans to bring the Nano to the United States any time soon.

It does not have air bags or antilock brakes — neither of which is required in India — and if you want AC or a radio, or power steering, you'll have to pay extra. The Nano will be officially launched at a ceremony in Mumbai later Monday, with models arriving in showrooms in April.

Production of the car has been scaled back from initial targets — and the rollout has been delayed six months — because Tata had to move its Nano factory from West Bengal to the business-friendly state of Gujarat. Violent protests by farmers and opposition political party leaders over land at the initial site forced Tata to change plans.

Company officials have said it will take at least a year to complete the new factory, and until then, Tata will only be able to produce a limited number of Nanos from its other car plants in India.

Tata Motors hasn't yet given details on production volumes, but most analysts doubt the company will be able to make more than about 50,000 cars in the next year — a far cry from the 250,000 the company had planned to roll out initially.

Few analysts predict the tiny car will be able to turn around Tata Motors, which has been beset by flagging sales and high debt.

The company has been hard-hit by the global downturn. Commercial vehicle sales, its core business, have been decimated as India's growth slows, and consumers have had trouble getting affordable car loans.

Tata Motors declared a loss of 2.63-billion rupees ($54-million) for the October to December quarter, and it has been struggling to refinance the remaining $2-billion of a $3-billion loan it took to buy the Jaguar and Land Rover brands from Ford Motor Co. in June.

Vaishali Jajoo, auto analyst at Mumbai's Angel Broking, said even if Tata Motors manages to sell 250,000 Nanos a year, it will only add 3 per cent to the company's total revenues.

“That doesn't make a significant difference to the top line. And for the bottom line, it will take five to six years to break even,” Ms. Jajoo said.

Still, analysts say the car could appeal to frugal car owners seeking a second vehicle as well as people like Mario Jonsamuel, who has never bought a car but owns one of the more than 7 million motorbikes sold in India last year.

“I have a bike. I will sell my bike and buy a Nano, because the four people in my family can sit in it,” he said.

I heard they are set for the uk although i'm guessing the will have to sort out the break issue to pass our MOT system. I don't think the y will even make a dent in the UK market 622cc would mean your chicken will be off by the time you get it home from the supermarket.

lol!!! too funny

Can Tata make money on parts for the Nano? With a lot of Nanos on the street, I'm sure the demand for Nano parts would also increase.

Well Nano is a big success for Tata Motors and India..It is the world's cheapest car and would surely bring a change in automobile industry through out the world..let me tell you all , even though it costs VERY less as compared to other cars, this car has passed ALL on-road and off-road tests that a car needs to pass inorder to come out on roads..

I just find it crazy that India hasnt put airbags mandatory? I mean, lets get with the program?

Originally Posted by akshaykalia

Well Nano is a big success for Tata Motors and India..It is the world's cheapest car and would surely bring a change in automobile industry through out the world..let me tell you all , even though it costs VERY less as compared to other cars, this car has passed ALL on-road and off-road tests that a car needs to pass inorder to come out on roads..

all the tests in india, i really doubt it can compete with cars here for safety ratings. Yes it may pass and not cost near the same amount, but i have to say i would rather pay the extra money for the safety.

Tata have launched an excellent car project "NANO" that offers the car at the cheapest rates for the common man to buy.This is a great feature and must be appreciated by the automobile world as it can revolutionize the industry.It will surely succeed as it guarantees basic car features includinf safety.This is a great step in this modern tech world.Good work TATA.

Well, I have travelled that highway between Mumbai (Bombay) and Pune. I was surprised to see so many burned out shells of cars on their roof, alongside the road. "Why?", I asked my driver. "The tires are Indian made and cannot take these high speeds", came the reply. The highway speed limit was 80 km/hr (48mph).

The Nano will be a great replacement for the 2-stroke auto-rickshaws in the traffic choked, speed limited streets of the big cities but the 30 mph model will probably need upgraded bearings, etc. Don't expect you will be driving down Route 66 near the speed limit (for very long).

As an aside, on one of my trips to India I booked a cab. I booked the air conditioned model (for more money) as it was monsoon season. I forget to book the model with air conditioning and windshield wipers, which would have been more money yet. I predict the Nano will not come "suitably equipped" for its list price.

I have a query about Nano.
I want to know when the car will be available for people to buy in the market?
I also want to have one and enjoy the ride of TATA NANO.
The work must be applauded.