Tata Nano, the world’s cheapest car will rule the cities as is expected to be a leader in the small car segment within one year of time period. The reason behind this is the ruling car market leaders —  Maruti 800 and Omni — will not be sold in 11 of India’s biggest cities from January 2010 because of failure to meet current emission norms. Out of the two cars sold in India these cities account for one.

Kapil Arora, Partner (Automobile), Ernst & Young said that, “This (absence of Maruti 800 and Omni) would mean no direct competition to Nano. The important question is whether Tata Motors would be able to manufacture enough units of Nano that would meet the demand.” 

Despite of Nano has the capability of becoming the highest selling car in small car segment but it will take time for it to contribute to Tata Motors’ up gradation.  

Tata Motors, which suffered a Rs 2,500-crore loss last year largely due the tribulations of its UK subsidiary Jaguar and Land Rover, needs to sell at least 2.5 lakh units of the Nano to make money from the world’s cheapest car. The company may be in a position to produce the Nano in these numbers only by the end of 2010 once its plant at Sanand, Gujarat becomes operational, says Mr. Arora. 

The price of the entry-level Maruti 800, the flagship product of Maruti Suzuki India is 2.15 lakh. While the Nano basic version costs just Rs 1.35 lakh although other version with additional features cost more. 

He added, “The pricing strategy of the product is not decided yet. The price of the Nano could go up. The margin at the moment is wafer thin”. “The first one lakh allotments (of the Nano) are price-protected as prices were declared at the launch. For others, should circumstances require any pricing decision, it will be intimated to them (customers who have booked the car) at the time of delivery”, said the company spokesperson. The diesel version of Nano is planned to be launched soon by Tata Motors. The rumors also say that the diesel Nano could cost around Rs 2 lakh, making it the cheapest car in the category.

Tata Nano: Price , Specifications & Features Online
Tata Nano Base Model (Petrol)
Tata Nano CX (Petrol)
Tata Nano LX (Petrol)

Related News:
Tata Nano - First 100,000 owners chosen & deliveries beginning in July
Tata Motors plans on Nano platform to build electric, hybrid cars
Ratan Tata launches Electric Car in Sept
Tata Nano likely to hit United States roads

Related Books:
The Autocar Handbook: A Guide to the Motor Car (1910)
Motor Cars or Power Carriages for Common Roads (1897)
Europe from a Motor Car (1914)

Add a comment

Posted by Naresh Koshti on 29 June, 2009 3:22:00 PM IST #