Tata Nano to Hit the Market in India

Indian auto maker, Tata, is now introducing a car that is aimed at poor people worldwide. The new Tata Nano is scheduled to hit the streets in India in July of this year. The car will sell for an eye popping low sticker price of about $2000. How will they be able to sell any brand new vehicle for such a low price? They cut out all of the bells and whistles that have become a part of auto making in recent years. As the economy has continued to plummet, both in the U.S. and worldwide, it seems that the auto makers have not kept up with the trend. People in these difficult times don't want (or need) all the amenities that have found their way on board vehicles during prosperous times.

The new Nano will be a scant 10 feet long, and will have all operations be manual. There are no power windows or door locks. There is no power steering available. The car also only has one windshield wiper. There is no mirror on the passenger side of the car. As you can see, the car has been stripped down, leaving only the bare necessities for a functional vehicle.

The makers of the Nano claim that the vehicle is perfectly safe, even though it is very small in size. The company's website posted the following:

The Tata Nano's safety performance exceeds current regulatory requirements - it passes the roll-over test and offset impact, which are not regulated in India. It has an all sheet-metal body, reinforced passenger compartment, crumple zones, intrusion-resistant doors, besides mandatory seat belts and complies fully with existing Indian safety standards. Tubeless tyres - among which the rear ones are wider endowing extra stability - enhance safety.

The Nano runs on a 624cc, 2 cylinder engine. It can deliver 35 PS @ 5250 rpm and a torque of 48 Nm @ 3000 rpm. This adds up to a top speed of 105 mph. The fuel efficiency and emissions on this vehicle top any available model currently on the road in India.

The Nano will have 3 different trim levels. The lowest level (Tata Nano Standard) will come in three standard colors, with one color interior and a fold down back seat. The second level (Tata Nano CX) will come in 5 different colors. It will also come with heating and air-conditioning (features stripped from the cheapest model). The CX will have two-tone seats, a parcel shelf built in, and booster assisted brakes. These features boarder on what we often think of as necessary here in the United States! The third level (Tata Nano LX) will come with all the features of the CX plus fabric seats. The LX also adds many of the "comfort amenities" that we are so used to. It will have central locking, front power windows, 3 premium exterior colors, fog lamps, electronic trip meter and even a cup holder! Interestingly enough, many of these types of features are not available on entry level cars in India. Currently, the warranty on the Nano is 18 months or 24,000 km.

Tata, when designing the Nano, did not have grand expectations of developing a car that would be sold and shipped around the world. But, with the current economic crisis, more people are looking for affordable transportation. Because of this, the company has developed models that will soon be shipped to Europe, and they have a U.S. model in the works. They have to alter the design to conform to the United States requirements for safety and emissions.

The limiting factor on this car is currently the facilities available to Tata. The current plant is only capable of producing 50,000 cars per year. Because of this, they are operating on a "booking process" for the cars. Orders can be placed, and the order of delivery will be determined at a point in the future. This problem should be resolved when the new facilities are opened sometime later this year. The new factory will be able to produce about 500,000 cars per year.

This car, if all goes as planned, seems like a win-win situation. Consumers looking for cheap transportation will have found it, and it will help to save the struggling Tata company. Tata has been struggling financially since buying out Jaguar and Land Rover brands from Ford. Though it probably won't lead to an immediate turn around, the projected 1 million cars per year projected to be sold in India alone will have a positive impact on the company and the brand.

It is hard to tell whether this car will sell successfully in the United States. There are many other small cars which have done well, even with a much higher sticker price. The greatest concerns may be for safety. However, the opportunity to buy a vehicle at such a cheap price will appeal to many. Americans have not seen such a low sticker price for many years!

Sources:

http://www.foxnews.com/story/0,2933,510196,00.html

http://www.foxnews.com/photoessay/0,4644,6846,00.html (click here to see pictures of the Nano)

http://tatamotors.com/our_world/press_releases.php?ID=431&action=Pull