Tata Motors on Thursday unveiled its much-anticipated Nano ‘people’s car’. Often referred to as the ‘1 lakh’ (100,000 rupees or $US2,500) car, this is a model designed to appeal to Indian families who currently get around on a motorcycle or three wheeler.


Tata calls the Nano “a first for the global automobile industry, saying “the people’s car brings the comfort and safety of a car within the reach of thousands of families”. It will be launched in India later in 2008.


Speaking at the launch ceremony at the ninth Auto Expo in New Delhi today, Tata Group chairman Ratan Tata said: “I observed families riding on two-wheelers – the father driving the scooter, his young kid standing in front of him, his wife seated behind him holding a little baby. It led me to wonder whether one could conceive of a safe, affordable, all-weather form of transport for such a family.


“Tata Motors’ engineers and designers gave their all for about four years to realise this goal. Today, we indeed have a people’s car, which is affordable and yet built to meet safety requirements and emission norms, to be fuel efficient and low on emissions.


“We hope it brings the joy, pride and utility of owning a car to many families who need personal mobility.”

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.

Tata said the Nano can comfortably seat four. It is 3,100mm long, 1,500mm wide and 1,600mm tall and has sufficient ground clearance for all types of Indian road. It is 8% shorter than the Maruti Suzuki 800 (an early 1980s design) but has 21% more passenger space.


“Its mono-volume design, with wheels at the corners and the powertrain at the rear, enables it to uniquely combine both space and manoeuvrability, which will set a new benchmark among small cars,” Tata claimed.


The car will be offered in both standard and deluxe versions. Both will offer a wide range of body colours, and other accessories so that the car can be customised to an individual’s preferences. The base version is just that – no radio, air conditioning, passenger-side mirror and only one windscreen wiper.


The rear engine, rear wheel drive Nano has an all-aluminium, two-cylinder, 623 cc, 33 PS, multi point fuel injection petrol engine. Tata said this is the first time that a two-cylinder gasoline engine has been used in a car with a single balancer shaft.


“The lean design strategy has helped minimise weight, which helps maximise performance per unit of energy consumed and delivers high fuel efficiency. Performance is controlled by a specially designed electronic engine management system. The car has a continuously variable transmission and uses five liters of petrol per 100 kilometres.


The Nano is said to exceed all current Indian safety regulatory requirements though these are far short of norms in developed markets such as the US and western Europe. It has an all sheet-metal body with strong passenger compartment and basic safety features such as crumple zones, intrusion-resistant doors, seat belts, strong seats and anchorages, and the rear tailgate glass bonded to the body. Tubeless tyres further enhance safety.  Local reports said the car has also been designed to pass international side offset and side crash tests.


Tailpipe emission performance also exceeds Indian regulatory requirements. Tata said the Nano has a lower pollution level than two-wheelers being manufactured in India today.  It was reported locally that the car can pass Euro 4 emission norms.


“The high fuel efficiency also ensures that the car has low carbon dioxide emissions, thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint,” it said.


According to the Associated Press (AP), dealers will sell the basic model for INR100,000 but customers will pay slightly more than that due to taxes and other charges.


While the price has created a buzz, the news agency said critics say the vehicle will lead to possibly millions more cars hitting already clogged Indian roads, adding to mounting air and noise pollution problems. Others have said Tata will have to sacrifice quality and safety standards to meet the target price.


AP noted that chief UN climate scientist Rajendra Pachauri, who shared last year’s Nobel Peace Prize, said last month that “I am having nightmares” about the prospect of the low-cost car.


“Dr. Pachauri need not have nightmares,” Ratan Tata said at the launch. “For us it’s a milestone and I hope we can make a contribution to the country.”


AP said analysts believe the Nano may force other manufacturers to lower their own pricing. Renault and partner Nissan Motor are trying to determine if they can sell a compact car for less than $3,000.


For now, the news agency added, the car will be sold only in India, but Tata has said it eventually hopes to export it. The Nana could become the basis for other similar super-cheap models in developing markets around the world.