Tata Motors’ Nano, the self-proclaimed world’s cheapest car, is facing problems with its Bangladesh launch because of its price.

Imported small cars attract import duty of 132% per unit so the proposedBangladeshi selling price (US$7,900) is almost three times its tag in India (US$2,870).

Local distributor Nitol Motors postponed the launch scheduled for 15 October.

“A lot of people came to us [to place orders]. But we deferred the launch of Nano at the last moment as we’re seeking a review of the price which some say is too high,” said Abdul Matlub Ahmad, director of Nitol Motors.

He expects prices eventually to come down.

“The price will come down once we start assembling the car here. If the car becomes popular in Bangladesh, Tata plans to manufacture the car locally. We anticipate the Nano will be very popular because it is extremely fuel efficient. You can drive more than 25 kilometres (15.5 miles) with a litre of gasoline,” Ahmad said.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Despite the price, Ahmad is confident about the car’s success in Bangladesh.

“We are now taking orders – initially we’ll sell 3,000 Nano cars. We hope it will be a big hit in Bangladesh,” said Ahmad.