World's cheapest car, Nano, hits Indian roads

Jul 17, 2009, 14:07 GMT

   New Delhi - The world's cheapest car, the Tata Nano, Friday hit the roads of India with the first three customers receiving the keys to their vehicles in the country's financial hub of Mumbai, officials said.

   Ratan Tata, head of Tata Motors which manufactures the 'people's car' that costs 100,000 rupees (2,054 dollars) the at factory gates, handed over the keys to three Nanos to the customers at a showroom in the city.

   'I hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern, contemporary, emission-friendly city car,' Tata said.

   Tata Motors commenced deliveries in India one and a half years after its prototype attracted global attention at a car show in New Delhi in January 2008.

   The delay was caused after Tata had to relocate the plant from the eastern state of West Bengal after an agitation by farmers over allotment of land.

   Tata Motors has said there has been an overwhelming demand for the car - more than 205,000 orders have been received since bookings opened early this year.

   Analysts say the company may struggle to meet orders if there is a surge in demand.

   Despatches to dealerships have begun from its plant in the northern Uttarakhand state, which has a capacity to built 50,000 Nanos a year.

   The new main Nano plant at Sanand in western Gujarat state which will be able to manufacture 250,000 cars a year, is scheduled to become operational by 2010.

   The 624-cc jellybean-shaped car with a snub nose can reach a top speed of 105 kilometres per hour and deliver a fuel efficiency of 23.6 kilometres per litre.

   With just enough room for five people, the Nano will be available in three variants - standard, deluxe and luxury. The base model has no air-conditioning, airbags, radio or power steering.

   There are concerns that the small car could mean big problems for Indian roads.

   Environmental activists say that an influx of these cars could drive public transport and two-wheelers off the roads and greatly increase urban congestion and environmental degradation.

   As critics question the Nano's safety and emission standards, Tata said the car has the lowest carbon dioxide emission amongst cars in India and will also meet the stringent Euro 4 norms.

   The Nano's safety performance 'exceeds' current regulatory requirements it has passed the roll-over and the impact tests which are not regulated in India, the company said.