Tata Motors has given its Nano, billed as the world’s cheapest car, its second international launch in a month. First it was the turn of Sri Lanka. This week the car has been launched in Nepal where, because of customs duty and taxes of up to 240%, the car will be more than three times the Mumbai tag of as little as INR1.51 lakh (INR151,000; US$3,300).

It costs INR5 lakh (INR500,000) in the Himalayan nation but is still cheaper than its nearest competitor – the Maruti 800, which costs INR1.4m. The Nano is available in Sri Lanka from INR380,000.

Encouraged by the response generated by two Nanos traversing over 6,000 kms (about 3,750 miles) across Nepal in the past three weeks, company officials think the car’s potential there is limitless.

“Nano will provide freedom and empowerment for people in Nepal caught between inadequate public transport and expensive private vehicles,” Johnny Oommen, international business head at Tata Motors, said.

He added the company had already received 5,000 inquiries and expects customers from all sectors including two-wheeler owners, young professionals, small families and those seeking a second car.

In Nepal, the Nano is distributed by Sipradi Trading, the country’s second largest private sector company which has been selling Tata vehicles (both commercial and passenger) since 1975.

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“The car has all the requisites needed to suit Nepali customers and hence it should be able to make its mark here,” said that company’s Siddhartha SJB Rana.

Order books for the car opened on Sunday for 10 days and Tata Motors has linked with 10 banks to provide loans to customers.