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The Cheapest Car 2009/3/24 17:48:54


 

The Tata Nano has officially been launched in India, with sales starting in April.

The Indian conglomerate, which also owns Jaguar Land Rover, first presented the “one-lahk car” (that’s 100,000 Rupees or the equivalent of £1400) to a frenzied media in January 2008, who considered the Nano as significant a new car lauch as the Ford Model T.
Now fifteen months later, the Nano is finally being readied for production. This car - just 3.1m long - is a rear-engined four-seater and is tasked with mobilising India's new middle-class, just as the Model T helped mobilise the US a hundred years ago. But its development has not been without controversy.

The Nano was originally due to be built in the communist-governed state of West Bengal, but the acquisition of farm land to build the plant provoked violent protests from the farmers. Tata was forced to abandon its plans, writing off around £250m. The problems delayed the launch by seven months and the new factory will now only be able to build around 60,000 Nanos in the next year, instead of the original target of 250,000. Tata has also had to cope with steeply rising material costs, which could threaten its profitability. Henry Ford would not be impressed.

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