Tata Nano: The World’s Cheapest Car
January 10, 2008
By Nick Kurczewski
NEW DELHI, India -- On Thursday morning, Jan. 10, Tata Motors rocked the automotive world with the unveiling of its hugely anticipated “1-Lakh” car at the New Delhi Auto Expo.
Huge crowds had gathered around the Tata Motors show stand more than three hours before the car’s official launch at 11:30 a.m. (New Delhi time).
And then the car that has been called "The People's Car" was revealed. The $2,500 Nano hatchback goes on sale in India later this year, and exports are planned within three years time.
The Nuts and Bolts
The Nano is rear-engined and rear-wheel drive. Power is delivered by a 34 horsepower 623cc aluminum twin-cylinder gas-powered engine. Tata quotes the Nano’s fuel economy at around 50 miles per gallon.
The engine meets Euro III emissions standards, which are about three to four years behind current European regulations.
Two versions will be available, in either standard or deluxe trim.
What About Safety?
Before the Nano’s launch, a huge question mark hung over the car’s safety 
features. Could a car built to such a low price ever hope to offer any degree of protection in the event of an accident?
Ratan Tata, chairman of the Tata Group, the tea-to-steel conglomerate that includes Tata Motors, says that the Nano has already passed Indian full-frontal crash tests and has been designed to meet international offset and side-impact crash tests. For now, the Nano has no airbags. However, Ratan Tata says that these could easily be added for markets outside India.
The biggest surprise was that Tata Motors was able to stick to the 1-Lakh (one lakh equals 100,000 Indian rupees, which is equivalent to about $2,500 U.S. dollars). The base car, without optional air conditioning, will have a dealer price of 1-Lakh before taxes and shipping costs.
“A promise is a promise, and that’s what we’d like to leave you with,” said Ratan Tata at the conclusion of the press conference.
Nick Kurczewski is a Paris-based correspondent for AutoObserver covering the New Delhi Auto Expo.
Posted by at 11:36 AM under Companies , Featured , News | Comments (17) | digg this | Seed Newsvine
when can i buy one?
Posted by: mike | January 23, 2008 at 10:53 AM
Hi Mike. Thanks for commenting. The Nano is a very exciting small car that is stirring up lots of interest around the world. Unfortunately, the answer to your question is a little complicated.
If you live in India, then you might be able to drive a new Nano off your local Tata Motors lot as early as this fall. Ratan Tata has said that the first 2-3 years of Nano production will be devoted solely to the Indian market.
However, the factory in Singur (West Bengal), India, dedicated to building the Nano is also currently under construction. Production delays are possible since the plant has stirred controversy and stoked tension with some residents in Singur. I wouldn't be surprised if full production levels weren't reached until early 2009.
As for other markets...it's only guesswork. Latin America, Asia, and Africa are definitely targeted by Tata as potential markets for the Nano. As for Europe and America, Ratan Tata would only say that those markets are being studied carefully.
Posted by: Nick Kurczewski | January 25, 2008 at 1:37 AM
I read that its (Nano Car) body is glued. How is it possible? Will it give strength to car?
Does it have Rubber Nut Bolts?
Posted by: Johnson | January 31, 2008 at 12:35 AM
why can't north america , with all it's technology, come up with something better ? why is a third world country showing us common sence ?
Posted by: james gordon | February 05, 2008 at 2:40 AM
Someone asked the same question (regarding the body being glued) during the New Delhi Auto Expo press conference.
Lotus uses an extruded aluminum chassis, bonded together with industrial-strength glue, for its nimble little Elise sportscar.
What does the Elise have to do with the Nano? Well, rumor was that Lotus had assisted Tata in designing a simple and robust platform for the Indian company's city-car. Apparently, this wasn't true.
Ratan Tata made this clear during his interview with foreign journalists. The Nano's structure and body is welded steel. Nothing fancy, and with no high-tech adhesives.
Posted by: Nick Kurczewski | February 05, 2008 at 4:51 AM
Thanks for your comment James. But the same question could be asked of Japan, Asia, and Europe. Why did no one think of developing a $2500 before?
Well, the simple answer is that, up until recently, there wasn't a market for this type of car. Americans, Europeans and many Asian customers would find the Nano too slow and too basic for their needs. It's an amazing car, but for more developed markets it would need more safety features, more convenience items, and (perhaps) additional power.
But many customers in India, Africa, and China are less demanding since many are moving from a wheezy scooter to the (relative) luxury of their first four-wheeled vehicle.
And to be perfectly honest, you simply need a third-world country (where employee wages are much lower) if you want to build a car like the Nano and retain any sort of profit margin.
Btw. the partnership of Renault/Nissan/Bajaj Autos, Toyota, and now Hyundai have all announced plans to build cars aimed at the Nano. Stay tuned, since this previously undiscovered segment looks like it could get crowded fast.
Posted by: Nick Kurczewski | February 05, 2008 at 5:02 AM
I live in the US Virgin Islands on an island (30 miles*10 miles) and I'm looking forward you bring the Tata Nano to our islands that we can unplug our traffic here. I wished you could bring these little wounderful cars to our shores as soon as possile and maybe we could get rid of all these oversized SUV's etc.
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Posted by: P. Agbontaen | February 23, 2008 at 2:51 AM
Nano car was very small & low price so every peopel like it.
Posted by: bhavin | March 17, 2008 at 5:09 AM
hello my name is Gary Madden
I am interested in the following information on your car can your car be driven on the freeway can I buy one year cars I live in the United States in California and I need to know can I drive your car on the freeways and can I buy one year cars and how do I go about doing this please e-mail me back with the answers to my questions my e-mail address is Gary754@netzero.net I wait for your answer thank you
Posted by: gary madden | March 27, 2008 at 4:03 PM
curious, what if I were to visit India, buy a Nano.. would I be able to ship it home to the states? and drive it here?
Posted by: Holly | April 03, 2008 at 6:30 PM
good questions. I don't know. We'll look into these questions
Posted by: Michelle Krebs | April 04, 2008 at 4:22 AM
DEAR SIRS: MY NAME IS ROBERTO SAMAYOA. I AM FROM GUATEMALA CENTRAL AMERICA, I AM VERY INTERESTED IS SELLING YOU NEW VEHICLE (TATA NANO IN MY COUNTRY) I WOULD LIKE TO BUY AT THE BEGINING 20 CARS AS EXPERIMENT, IS ANY POSIBILITY.
REGARDS.
ROBERGTO SAMAYOA
Posted by: ROBERTO SAMAYOA | April 05, 2008 at 9:18 PM
james gordon , a "third world county" is not only showing you common sense but also how to spell it.
Posted by: Ash | April 12, 2008 at 5:15 PM
Hello Sir,
I really appreciate the great product you have launched, i would like to know is it possible to bring this car to Canada. I would know atleast 100 people who will buy this car in a heart beat. Please get back to me
Posted by: James Fletcher | April 27, 2008 at 4:00 AM
I would love to buy one of these cars please let me know how. Thanks ,
Mark
Kram151@aol.com
Posted by: Mark Daniels | May 03, 2008 at 3:21 PM
I rely love the way this car is and look,s your doing a good job ;;;what i wood like to know is where can i buy one for me i live in weatherford texas usa and would love to have one of the nano car in black help me get one thanks from Alan in TEXAS
Posted by: Alan | May 07, 2008 at 8:15 AM