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India's Tata launches world's cheapest car
(Agencies)
Updated: 2009-03-24 10:22 MUMBAI -- India's Tata Motors on Monday launched the world's cheapest car, the Nano, hoping to revolutionise travel for millions and buck a slump in auto sales caused by the global economic crisis. Company boss Ratan Tata said the no-frills vehicle, slated to cost just 100,000 rupees (2,000 dollars) for the basic model, will get India's middle-class urban population off motorcycles and into safer, affordable cars.
"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," he said, describing the launch as a "milestone." "The present economic situation makes it somewhat... more attractive to the buying public," he told reporters in Mumbai. The wraps were taken off three Nanos -- dubbed "The People's Car" -- at a glitzy, open-air ceremony at a south Mumbai sports ground. Tata confirmed that the basic model would be 100,000 rupees direct from the factory, not including tax and transportation. The cheapest showroom price is 112,735 rupees. Potential owners of the car -- which is just over three metres (10 feet) long and has a top speed of 105 kilometres (65 miles) per hour -- can apply between April 9 and 25, Tata managing director Ravi Kant said. A ballot will then select 100,000 people to be the first to get the keys to the vehicle and deliveries will start in early July 2009, he added. Even affluent Indians are eyeing up the Nano, which has a two-cylinder engine and four-speed manual transmission but no air conditioning, electric windows or power steering. Versions with air conditioning and power steering will be available, costing up to 170,335 rupees for a deluxe model straight from the factory floor, or 185,375 from a Mumbai showroom. Shares in Tata Motors on India's 30-share Sensex index jumped eight percent in early trade but finally closed 2.8 percent up on profit-taking. |
