India's $2,000 Beetle?

[kstar]

World's cheapest car is launched

The Tata Nano, the world's cheapest car, has been launched in India.

Costing just 100,000 rupees ($1,979; £1,366), the Nano will now go on sale across India next month, with deliveries starting in July.

Tata hopes the 10-foot (3-metre) long, five-seater car will be cheap enough to encourage millions of Indians to trade up from their motorcycles.

Tata owner Ratan Tata has described the Nano as a "milestone". Analysts say it will not make a profit for six years.

We wanted a find a safe way to transport Indian families at an affordable price
Tata owner Ratan Tata

Tata's managing director Ravi Kant said that from the first orders, a ballot would then select the initial 100,000 people to get their Nano.

"I think we are at the gates of offering a new form of transport to the people of India and later, I hope, other markets elsewhere in the world," Mr Tata added.

"I hope it will provide safe, affordable four-wheel transportation to families who till now have not been able to own a car."

Environmentalists are warning that the Nano will add to India's already clogged up roads, and pollution levels will soar. Tata says the Nano will be the least polluting car in India.

The basic model has no airbags, air conditioning, radio, or power steering. However, more luxurious versions will be available.

A slightly bigger European version, the Nano Europa is due to follow in 2011, and is expected to cost nearer to £4,000.

Analysts said that if the car proves an immediate hit in its home market, Tata may struggle to meet demand.

This is because the main Nano factory in the western state of Gujarat, which will be able to build 250,000 cars a year, is not due to open until next year.

In the meantime, Tata will only be able to build about 50,000 Nanos at its existing plants.

The delay happened when Tata had to abandon plans to build the Nano in a new plant in the eastern state of West Bengal due to a row over land acquired from farmers.

This caused the launch of the Nano to be put back by six months.

Even if Tata can sell 250,000 models a year, it will add only 3% to the firm's revenues, says Vaishali Jajoo, auto analyst at Mumbai's Angel Broking.

"That doesn't make a significant difference to the top line," he said.

"And for the bottom line, it will take five to six years to break even."

Yet with seven million motorcycles sold last year in India, Tata is eyeing a huge marketplace for the Nano.

Like almost all global carmakers, Tata has seen sales fall as the global economic downturn has continued.

The firm made a 2.63bn rupees loss for three months between October and December.

In addition, Tata is struggling to refinance the remaining £2bn of its £3bn loan it took out to buy the Jaguar and Land Rover brands from Ford in June of last year.

[UconnTim97]

has no airbags, air conditioning, radio, or power steering. However, more luxurious versions will be available...sounds almost like my 944.

I don't think this could be sold in the US though.

[masraum]

Originally Posted by UconnTim97

has no airbags, air conditioning, radio, or power steering. However, more luxurious versions will be available...sounds almost like my 944.

Except that your 944 is solid. I suspect this thing will be a rickety piece of junk that falls apart in a few years at best. It's an enclosed moped.

I don't think this could be sold in the US though.

I think that's a bit of an understatement!

[bell]

how long before someone sticks a 'busa engine in it ?

[UconnTim97]

Originally Posted by bell

how long before someone sticks a 'busa engine in it ?

Good point...a few videos of those engines in Smart cars on youtube...lol

[Bill Douglas]

I remmember when they talked about this years ago. What amazed me was to save money they wern't going to have wheel bearings, but rather have bushes instead.

[red-beard]

It is probably safer than a scooter, but not much...

[HardDrive]

They are going to make a mint on these babys. Perfect for those entering the Indian middle class.

[Dave L]

Originally Posted by red-beard

It is probably safer than a scooter, but not much...

Actually I think that was exactly the intent. The tata seats 5 and I would have to think that is much safer than this

[onlycafe]

i think they should stick to ox carts. much safer for everybody. and free fertilizer too.

[Oracle]

I think that will be the model for the new generation of city cars... Hopefully they're made of Recyclable materials because it will be truly disposable.
Only 600 Kgs.. and you can sit a 6' person in the back and front!

[GothingNC]

Just need a good strong crosswind and they'll be lying on the side of the road.

[Dixie]

India is getting cars for the masses. We're getting cap-and-trade...

[jyl]

Because we already have cars for the masses.

[JR Indy]

I visited Tata last year on a different project, but we did discuss the Nano. They may have a hit with this car in the developing countries, and will help establish themselves as a player in the automotive business. They have a lot of money, a lot of engineering talent, and are looking to grow. It will be interesting to see if they are successful with this. They are definately looking at the concept of a car in new ways. Of course, India is not overwhelmed with government regulations on cars....mainly emissions and safety.

[The Gaijin]

This car is basically a step up from the whole family riding on a 125cc motorbike or one of those 3 wheeler "rickies".

[ramonesfreak]

looks like the prefect little car for city life. what more do you really need for urban transportation?

[HardDrive]

Originally Posted by JR Indy

They may have a hit with this car in the developing countries, and will help establish themselves as a player in the automotive business.

'help establish' ? I'm thinking their already quite established. Who do you think is going to buy up the pieces of GM?

[JR Indy]

Perhaps "further establish" would have been a better choice of words. They are not seen as a major player globally at this time in the passenger car market. They have established themselves in other markets and industries, commercial vehicles being one.

As far as GM, I'm not sure Tata is that interested in many pieces of GM. Unless for distribution or manufacturing capacity in Asia, or as a future launching pad into NA or Europe (Saab, Opel?) But, that is my speculation. I'm sure Tata has studied it and will buy up any thing that will help them grow.

[onewhippedpuppy]

It's intended to replace a motorcycle. Compared to a motorcycle, it looks pretty damn safe. India's Model T?