Tuesday, September 29, 2009

Tata Nano: The People’s Car Shown at Delhi Auto Expo

The much-awaited Tata Nano has been unveiled earlier this year in India. Dubbed as 1-lakh car in India, the passenger car which Tata Motors claims world’s cheapest car has been showcased at the New Delhi auto expo. Tata Group chairman Ratan Tata drove the car himself on the stage in front of hundreds of car enthusiasts.

Ratan Tata announced to introduce a small car priced 1 lakh four years back in 2005 and the car came into appearance in earlier this year. Tata has already received lots of pre-orders for the car and it is expected that the company will start delivering the cars later this year. Here, I am quoting some lines from Alibaba about the specifications of Tata Nano:

At the Auto Expo in New Delhi, Ratan Tata drove the Nano, which the company calls the People's Car, onto the stage and said it would still have the price tag of 100,000 (approximately $2,500) rupees promised four years ago, though commodity prices have since risen. "That's because a promise is a promise." In India, it's called the 1-lakh car ("lakh" being the Indian equivalent of 100,000).

So, you can see that Tata Nano has all the reasons to rock the Indian car market in the next few years. Because of its price point, the two-wheeler market will also be affected in India. Though it seems that Tata would make huge money through this model, the problem is that profit margin for Tata Nano will be very small.