just-auto.com

INDIA: Diesel Nano delayed

By just-auto.com editorial team | 27 October 2008

The launch of Tata Motors' diesel Nano has been postponed due to slowing demand and costs incurred in the last minute shift of plant from Singur to Sanand.

Auto industry sources told the Economic Times of India that the diesel Nano, expected some time in 2009, has now been delayed with the focus shifted to launching the petrol version in the first quarter of 2009.

It had originally been scheduled for launch this month.

A company spokesman told the paper: "Tata Motors has consistently said that Nano will be launched with a gasoline engine."

Vendor sources told the paper the financial and time loss due to the shift from Singur [after farmers protested over land seizure] has hit the Nano project.

The scheduled launch of the petrol Nano in the last quarter of this calendar year was likely to be pushed back to the first quarter of next calendar year, sources said.