ReutersPublished: January 10, 2008, 13:25
New Delhi: India's Tata Motors Ltd unveiled the world's cheapest car on on Thursday, bringing car ownership closer to millions of consumers in emerging markets. The four-seater Nano, with an engine around 625cc, will have a dealer price of Rs100,000 ($2,500) - about half the cost of the cheapest car on today's market, a 25-year old model from rival Maruti Suzuki. The Nano will go on sale later this year. "Let me assure you and our critics the car we have designed will meet all safety norms and all foreign environmental criteria," chairman Ratan Tata said as he unveiled what had been dubbed the "People's Car" at the Auto Expo in New Delhi.
Contrast
The compact but curvy Nano stands in sharp contrast to the luxury Jaguar and Land Rover brands that Tata is negotiating to acquire from Ford. Hundreds of people crowded into the pavilion to see the long-awaited launch, standing on chairs to get the best view as Tata introduced and then drove the car onto the stage. Tata planned the car years ago as a safer and affordable alternative for the millions who often ferry families of four, plus baggage, on motorbikes and scooters. "It's a dream come true," Ashok Singh, a constable with the Delhi Police, said at the show. "I look forward to buying that car. My wife will be really happy." Environmentalists are not so enthusiastic. 
They worry millions of the cheap cars will flood on to India's roads, many of which are already heavily congested, sending emissions levels sky high in Asia's third-biggest economy. The car arrives at a time when oil has topped $100 a barrel, the move to fuel-efficient 'green' cars is gaining momentum, and a wave of nostalgia has spurred sales of brands such as BMW's Mini and the Fiat 500 Cinquecento. Tata said the car would have a rear-mounted engine and travel 20 kilometres per litre. It would be offered in a basic model and two deluxe variants. "The proof of the pudding will be in driving it, but visually it looks pretty good," said London-based auto analyst Ashvin Chotai, who was present at yesterday's unveiling. "The pricing was a bit of a surprise. I thought it would be a bit higher." Chotai believed deluxe variants 
of the Nano, which will include features like air-conditioning, would account for bulk of the sales. "Margins are still going to be very, very thin," he said. Tata has said it will initially produce about 250,000 Nanos and expects eventual annual demand of 1 million units. Global car makers - initially sceptical that Tata could produce such a low-cost car - are now scurrying to make their own versions to meet the needs of cost-conscious consumers in emerging economies such as China, India and Russia. Ford this week said it would build a small car in India within two years, while the alliance of Nissan Motor and Renault, which has made a big success of its no-frills Logan sedan, plans a $3,000 car with India's Bajaj Auto. Volkswagen, Toyota, Honda and Fiat have also said they are looking at small cars for emerging 
markets where strong economic growth has made car ownership a reality for millions. Tata said it would focus on the home market for two to three years before considering exporting the Nano to countries in Africa, Latin America and Southeast Asia. Have your sayWould you buy a Nano car?
The compact but curvy Nano stands in sharp contrast to the luxury Jaguar and Land Rover brands that Tata is negotiating to acquire from Ford. Hundreds of people crowded into the pavilion to see the long-awaited launch, standing on chairs to get the best view as Tata introduced and then drove the car onto the stage. Tata planned the car years ago as a safer and affordable alternative for the millions who often ferry families of four, plus baggage, on motorbikes and scooters. "It's a dream come true," Ashok Singh, a constable with the Delhi Police, said at the show. "I look forward to buying that car. My wife will be really happy." Environmentalists are not so enthusiastic. 
They worry millions of the cheap cars will flood on to India's roads, many of which are already heavily congested, sending emissions levels sky high in Asia's third-biggest economy. The car arrives at a time when oil has topped $100 a barrel, the move to fuel-efficient 'green' cars is gaining momentum, and a wave of nostalgia has spurred sales of brands such as BMW's Mini and the Fiat 500 Cinquecento. Tata said the car would have a rear-mounted engine and travel 20 kilometres per litre. It would be offered in a basic model and two deluxe variants. "The proof of the pudding will be in driving it, but visually it looks pretty good," said London-based auto analyst Ashvin Chotai, who was present at yesterday's unveiling. "The pricing was a bit of a surprise. I thought it would be a bit higher." Chotai believed deluxe variants 
of the Nano, which will include features like air-conditioning, would account for bulk of the sales. "Margins are still going to be very, very thin," he said. Tata has said it will initially produce about 250,000 Nanos and expects eventual annual demand of 1 million units. Global car makers - initially sceptical that Tata could produce such a low-cost car - are now scurrying to make their own versions to meet the needs of cost-conscious consumers in emerging economies such as China, India and Russia. Ford this week said it would build a small car in India within two years, while the alliance of Nissan Motor and Renault, which has made a big success of its no-frills Logan sedan, plans a $3,000 car with India's Bajaj Auto. Volkswagen, Toyota, Honda and Fiat have also said they are looking at small cars for emerging 
markets where strong economic growth has made car ownership a reality for millions. Tata said it would focus on the home market for two to three years before considering exporting the Nano to countries in Africa, Latin America and Southeast Asia. Have your sayWould you buy a Nano car? Your comments
The car is affordable. But the traffic situation is going to get worse in India once it is launched. QassimDubai,UAEPosted: January 11, 2008, 14:48
Some readers wrote it is a waste of money. But the Tatas can always be relied upon. People like me, who earn only Dh5000, can now afford a car in their home countries. AshwaniDubai,UAEPosted: January 11, 2008, 12:13
This car would probably sell in the US if it had a little more horsepower and a radio. It would also have to have emission control.PaulMiami,USAPosted: January 11, 2008, 10:19
Yes, I will buy this car. It is small; easy to move in traffic and easy to park.AmitDubai,UAEPosted: January 11, 2008, 10:02
I see this car as a replacement for bikes, which are responsible for bad traffic on Indian roads. The traffic authorities should enforce lane discipline on Indian roads, especially after the nano car is launched. SeemaBangalore,IndiaPosted: January 11, 2008, 08:55
A car made of plastic and other cheap stuff and no air bags -- seems like a toy. What safety is Ratan Tata talking about? ShekharTamil Nadu,IndiaPosted: January 11, 2008, 08:35
I would like to by this car. Not just in India, but people from around the globe will be interested to own this car. Thanks to Tata Motors. KamakshiBangalore,IndiaPosted: January 11, 2008, 07:58
Looks like a cute little child -- lovable and enticing. Will definitely buy it, if possible two -- one for myself and another one for my son and daughter. RamanaHyderabad,IndiaPosted: January 11, 2008, 07:43
This car is a boon for middle-class families. It will really revolutionalise the automobile industry. VipinKarnal,IndiaPosted: January 11, 2008, 07:42
If this car were to come to the US, I would rush to buy one for my wife!MarkBirmingham,USAPosted: January 11, 2008, 06:00
The Tatas have made it possible for everyone to own a car. Bravo Tata for such brilliant production.RobertSan Francisco,USAPosted: January 11, 2008, 05:56
No doubt this is a good-looking car with an impressive price tag. It is a common man's car. However, I would wait to see the actual performance when this car hits the road.RanjitDelhi,IndiaPosted: January 11, 2008, 05:55
If you read the description "cost saving" just below the picture, you will come to know the standard of the car. It reads: no radio, air conditioning, air bags, safety beams; will not be able to run at the speed of 45mph for a long time and extensive use of plastic. So it is not safe for Dubai roads and Indian roads are even worse. JamaalDubai,UAEPosted: January 11, 2008, 02:08
It's a revolution. So many youngsters like me who wish to own a car can now go ahead and have one. The best part is that the Tatas haven't compromised on the looks, safety or size. In fact, it has a very sporty look. CharuPune,IndiaPosted: January 10, 2008, 15:31
It will replace two-wheelers and achieve record sales. DevinderChandigarh,IndiaPosted: January 10, 2008, 15:31
Would think twice before buying a cheap car. These cars are usually made of low-quality materials and not fit for the road after a year. It would be a waste of investment. AnneCebu City,PhilippinesPosted: January 10, 2008, 15:28
Thanks to Mr Ratan Tata for giving us this low-budget car with good looks and good performance. A great effort! I will buy this car once it comes to Hyderabad.SrinivasHyderbad,IndiaPosted: January 10, 2008, 15:27
I am very interested in buying this car. It's a superb gift from Ratan Tata; he has fulfilled a common man's dream. AkhilkakkarSurat,IndiaPosted: January 10, 2008, 15:25
Yes, I would buy a cheap car. I would take into consideration price, mileage, design and size. Arunkerala,IndiaPosted: January 10, 2008, 15:25
Great work by Tata Motors. I look forward to buying the car at the earliest.SaranganBangalore,IndiaPosted: January 10, 2008, 15:24
I expect to buy this new car when it becomes available in Hyderabad. I would like to give my hearty thanks to whoever came up with the idea of a low-budget car.SrinivasHyderbad,IndiaPosted: January 10, 2008, 15:23
I would definitely buy this car. I was so eagerly waiting for this. It meets all our needs.AnanthakrishnanKottayam,IndiaPosted: January 10, 2008, 15:22
Oh my god, my Mac is more expensive and I cant even find a decent second hand car which works for $2,500! If this becomes available in Australia I am buying it.SidMelbourne,AustraliaPosted: January 10, 2008, 15:21
I will definitely buy the car as a gift to my wife on her birthday.RawatNoida,IndiaPosted: January 10, 2008, 15:21
It's a good replacement but it should also run on diesel.AjitGuwahati,IndiaPosted: January 10, 2008, 15:21
I am sure this is going to rock the real time automibile industries and will make the dreams of the common man come true.VenkateshMadurai,IndiaPosted: January 10, 2008, 15:21
Unbelievable! I am eager to see this new car and run to the nearest dealer to book one.UshaHyderabad,IndiaPosted: January 10, 2008, 15:20
Since I have just started my career, I won't be able spend much on a new car. But this new Tata car will definitely widen my options.SathishBangalore,IndiaPosted: January 10, 2008, 15:19
I would definitely buy this car! Owning a car has been a distant dream but now it is within our reach. I can even buy it as gift to my kids.AbdulKasaragod,Iindia
Have your sayWould you buy a Nano car? Do you think it will be restricted in interest to India or find buyers globally?
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