The Economic Times

Tata launches world's cheapest car Nano
 

11 January 2008

NEW DELHI: It’s the car that promises to shake up the world automobile industry. The Tata Motors Nano, India’s first original contribution to the car industry, was unveiled on Thursday at a packed, near-stampede launch. As promised, it’s priced at Rs 1 lakh ($2,500).

The history-making car, which many industry observers predict will be a huge hit in emerging and even advanced markets, is already attracting world-wide attention with television channels in Europe and the UK telecasting the event live. Already, the launch of the Tata small car, the cheapest in the world, is being compared to seminal events such as the launch of Ford Model T and Volkswagen Beetle.

Chairman Ratan Tata unveiled the Nano, without a doubt the truck and carmaker’s most ambitious product, in standard and deluxe versions. The theme from “2001: A Space Odyssey” played in the background. The car will hit the market in the second half of 2008, close to the festive period.

The car unveiled on Thursday represents the culmination of Mr Tata’s dream of offering the comfort and relative safety of a car to users who can afford a two-wheeler. The four-door, four/five seater car is “8% smaller than the M800 externally but 21% more spacious internally”, Mr Tata said. It meets the frontal crash test norms mandatory in India. The Nano has been designed to meet offset and side impact crash test norms required overseas. In emission terms, it’s Bharat Stage 3 compatible and “we can meet Euro 4 too with this engine,” Mr Tata said. The car’s mileage, he said, will be 20 km per litre.

Tata Motors is also planning diesel and hybrid versions of the Nano. “By and large, we’ve always been a diesel company, so we will have a diesel version that will follow this variant soon after,” Mr Tata said. The current engine is a 623 cc, two-cylinder, MPFI engine with single-balancer shaft and four-speed manual transmission. The top speed is around 105 km per hour. The power-train is packaged in the rear to increase interior space and improve manoeuvrability. Tata Motors is building a 250,000-unit plant, expandable to 350,000, at Singur that will be fulfilled before we look at satellite plants,” Mr Tata said.

The company is in the process of finalising its distribution strategy for the Nano. “It won’t be traditional, we will remove some layers in distribution, sales and service,” Mr Tata said. “We are working on the distribution, finance and services backup for the Nano. We already have the passenger vehicle model for our Indica and other utility vehicle range that will help us to frame a structure to deliver the car,” he added

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