World's Cheapest Car Launched

India’sTata Motors Has Introduced its Nano Model

© Rupert Taylor

Mar 23, 2009
The World’s Cheapest Car, Tata Motor Company
Billed as the world's cheapescar, the Tata Nano is set to bring car ownership within reach for millions of people.

For the people who have left car dealerships suffering from sticker shock the Tata Nano may be the answer.

The Tata Motor Company has launched a three-metre long, five-seater car that sells for about $2,500. But, it’s only available in India at present. The 624cc engine is mounted at the rear and the no frills version lacks power-steering, air-conditioning, airbags, or a radio.

European Version of Nano

A slightly bigger version of the Nano, with a 934cc engine, is set for European showrooms in 2011 and it will come with a more than slightly bigger price tag at a bit over $7,000. It might make an inexpensive alternative to the Daimler AG Smart Fortwo and the Toyota iQ, both of which are priced at about $16,000, or the Volkswagen Chico, which is due to go on sale in 2011 at about $10,700.

It's uncertain if the car will be for sale in North America.

Mixed Reviews for Small Car

Autoweek took the Nano for a test drive and its reviewer said he was surprised by the roominess of the interior. But, that’s about as far as the compliments went.

Bob Rupani, Executive Editor of the magazine wrote in his online review, March 23, 2009, “'Start up the Nano and you immediately know it’s powered by a rear-mounted engine. The all-aluminum twin uses a single balance shaft, yet it is not very smooth or refined and sounds a bit like a lawn mower.” He adds that the engine causes noticeable vibrations even when it’s idling.

The Times of India (March 23, 2009) reported that “CNBC juxtaposed Nano’s release with the unveiling in New York of the Baby Rolls Royce 200 EX, one priced at around $2,500 and the other about a hundred times more expensive and dubbed the ‘Recession Royce.’ ”

The Times continued its report “ ‘Nano represents the hope for a new era in cars and transportation. Not just for the people of India, but millions others in developing countries,’ the network said, calling the new Tata car a game changer.’ ”

Can Tata Meet Demand?

According to the BBC, “Analysts said that if the car proves an immediate hit in its home market, Tata may struggle to meet demand.” The British news service said in its report of March 23, 2009 that the company can only build 50,000 Nanos at its existing plants.

“The main Nano factory in the western state of Gujarat, which will be able to build 250,000 cars a year, is not due to open until next year.”

Meanwhile, Autoweek says, “This car will finally put tens of thousands behind the wheel.” That’s something that gives environmentalists the shakes. They are warning that tens of thousands of these small vehicles on India’s already clogged streets will make traffic congestion worse and lead to a climb in pollution levels.

The Tata Motor Company, which is looking to the Nano to help restore its sagging fortunes, says the vehicle will be the least polluting car in India.


The copyright of the article World's Cheapest Car Launched in Emerging Business Markets is owned by Rupert Taylor. Permission to republish World's Cheapest Car Launched in print or online must be granted by the author in writing.


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