Q&A: India’s Tata Motors Chief Ratan Tata
January 11, 2008

NEW DELHI, India -- Hounded by journalists and chased for interviews all day Thursday, Ratan Tata, chairman of Tata Group and Tata Motors, has become an instant celebrity now that his company has delivered on its promise of delivering a production-ready vehicle priced at only $2,500.

The Tata Nano will be the world’s cheapest car when it goes on sale later this year in India. Ratan Tata promises that other markets will follow within two or three year’s time.  Sitting down with the foreign media, Ratan Tata answered questions pertaining to his revolutionary small car, the hurdles that lay ahead, and whether the Nano will ever be sold in Europe or the United States. AutoObserver correspondent Nick Kurczewski, covering the New Delhi Auto Expo this week, excerpts some of that briefing:

Where did the inspiration for the Nano come from?

“I saw families of three or four riding on scooters,” says Tata.  He then learned that traffic deaths on two-wheelers were three or four times that of cars.  His first idea for a cheap people’s car began as little more than a glorified trike, a sort of three-wheeler with a basic canopy. The next step was what Tata calls “a very basic vehicle with no doors.” The final four-door hatchback version can seat up to five people and is powered by a rear-mounted 33-horsepower 623cc two-cylinder engine. The car is just over 10 feet long (nearly two feet shorter than the Mini Cooper) and less than five feet wide.

Is the car safe? 

During the Nano’s unveiling, Ratan Tata stated that the Nano has met Indian frontal-impact crash tests.  As for other markets with more stringent crash criteria, Tata says that the company “would and could address foreign markets.”  Tata says that the Nano has been engineered to pass “international” offset frontal and side-impact crash tests.  Airbags are unavailable at the moment, though could easily be added.

Is it clean?

The Nano is capable of achieving 50 miles per gallon.  Ratan Tata explains that, for now, “emissions are applicable to Euro III and will be up to Euro IV standards in a few years.” [Not exceptional, though apparently equal to (or cleaner) than many of the scooters and motorcycles that the Nano was designed to replace.] 

Could the car compete in markets outside of India?

“If we went to developed markets, I think we’d have to engineer in a lot of content.” Tata says that this would include items such as power steering, airbags, and other features that car buyers in established markets demand as standard. “The price also would vary as each car has to be tuned to the individual market.” Tata does not shy away from the fact that a Nano engineered for more demanding automobile markets would dictate an increase in the car’s price. 

However, Tata says that the primary focus is still the Indian market.  “I think the first three years we’ll be busy with the needs of this country.” 

However, Tata does admit that that Latin America, Africa and Asian markets are of particular interest when it comes to planning for the Nano’s sales beyond India. 

What about the U.S.?

“When we have a product that is the type of vehicle the U.S. would like to have then I think that we’ll address that issue.”

Is there any news pertaining to Tata buying Jaguar and Land Rover (Ford confirmed this week the sale is expected to be completed by the end of March)?

“I don’t want to answer that question, even hypothetically.”  Next question.

Congratulations Mr. Tata, you’ve built your “1-Lakh” car.  Unfortunately, you’re now the subject of more media attention than Britney Spears.  Is the hard part over, or is your work just beginning?

[Laughing] “I don’t know how to take that comparison!  We have to deliver what we promised.  We have to build the plant…and go through the problems that any new start-up goes through.  I think the challenge has just begun.”

Photo by Nick Kurczewski
Ratan Tata, left, is seated.

Nick Kurczewsewski is Paris-based correspondent covering the New Delhi Auto Expo for Edmunds' AutoObserver.com.

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