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.

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.

Auto market intelligence
from just-auto

• Auto component fitment forecasts
• OEM & tier 1 profiles & factory finder
• Analysis of 30+ auto technologies & more