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Monday, May 05, 2008

World’s Cheapest Car Tata Nano to Hit the Indian Market Later This Year

Indian car maker Tata Motors Limited (ADR) (NYSE:TTM) are going to market its much awaited car, Tata Nano, later this year. Tata Nano is considered as world’s cheapest car with a price tag of 100,000 rupees ($2,500 or £1,277). Because of its eye catching price, it is expected that the car will attract the Indian people and Tata is initially manufacture 250,000 Tata Nano and the annual demand for Tata Nano is expected to be one million. Though the listed price is 100,000 Rupees, the customers have to spend a bit more after adding taxes and other costs.

Well, for offering this price tag, Tata Nano sacrifices some common features including air-conditioner, electric windows and power steering. Tata Nano is coming into the market amid India’s car market being expected to grow rapidly over the next few years thanks to India’s soaring economy.

Worldrecordsacadem reported:

Indian car sales are predicted to more than quadruple to $145bn by 2016. Company chairman Ratan Tata said the launch of the Nano was a landmark in the history of transportation

He said the car was "a safe, affordable and all weather transport - a people's car, designed to meet all safety standards and emissions laws and accessible to all".

The Tata chief, who drove a white Nano to the podium, said he had wanted to make "a safe, affordable and all-weather transport -- a people's car, designed to meet all safety standards and emissions laws and accessible to all."

Tata Nano is powered by a 33bhp, 624cc, engine at the rear. However, the environmentalists are raising their voice against Tata Nano claiming the car would increase air pollution, though Tata said that Nano had met the emission standards and required five litters per hundred kilometers. The company has also declared that Tata will also launch a diesel version of Tata Nano later.

Analysts think that Tata Nano has opened up a new segment of consumers in Indian auto market with its 100,000 Rupees price tag which has started a potential price war among the Indian car makers. Because of Tata Nano, the motor bikes will find it difficult to hold on with their market share. There are many who are terming Tata Nano a revolutionized car in terms of its price.

Well, time has not come yet to judge the success of Tata Nano. However, in Indian market, where two third of the annual passenger vehicles sold are small cars, Tata Nano seems to have a major success with its excellent price being offered.

What do you think about the success of Tata Nano in India?

1 comments:

Anonymous said...

I don’t know a lot about IOCL and BRPL. However, I guess the merger would be beneficial for both the companies and its stake holders.