WORLD> Asia-Pacific
India's Tata launches world's cheapest car
(Agencies)
Updated: 2009-03-24 10:22

Tata Motors Chairman Ratan Tata speaks as he stands with 'Nano' cars during their launch in Mumbai March 23, 2009. [Agencies]

Car dealers say they have been flooded with queries about the Nano, whose debut was delayed after violent protests over the acquisition of farmland to build the plant, forcing Tata Motors to shift from West Bengal state.

But the new plant in Gujarat in western India will not be ready until late this year or early 2010, Tata said, meaning production must come from existing factories, reducing output and increasing waiting times for deliveries.

Kant said 250,000 to 500,000 cars could be produced from the Gujarat plant from next year but admitted some customers may have to wait more than 12 months in the meantime to take possession of their Nano.

Tata, though, said it was the right decision to push ahead with Monday's launch of the 20-billion-rupee project.

The Nano's arrival comes at a tough time for India's top vehicle maker, hit by the economic slowdown at home and abroad as it tries to absorb the British luxury marques Jaguar and Land Rover that it bought last year for 2.3 billion dollars.

Tata is hoping the Nano will also be a hit overseas in the long term.