The Tato Nano is a city car that is manufactured by Tata Motors. This vehicle is both made and sold in India and was launched with a retail price of $1,600, which started increasing over time. The Nano was intended to draw middle-class Indians away from two-wheelers and it received quite a bit of publicity when it was first launched. After the Tata Ace was launched very successfully in 2005, Tata Motors started to develop a more affordable car that would appeal to many people throughout the country who normally ride motorcycles. The low price of this vehicle is the result of a no frills design, and it was incredibly popular when it was first released to the public.
Although this vehicle was highly anticipated, expectations that built up before its actual production may have been slightly out of proportion with its actual success when it launched. Sales for this vehicle were around 70,000 units per year for the first two fiscal years, and this automaker was determined to start producing more each year, leading to the plan to produce a greater number each year, even if it meant as many as 250,000 on one year.
It was announced in 2006 that the Nano would be manufactured in Singur, West Bengal. There was a significant backlash from local farmers in the area who opposed this decision very strongly because of the fact that it would involve acquiring their land in order to build the factory. The launch of the Nano was delayed and it was eventually decided that production would take place in Gujarat, instead. This vehicle was initially announced as being the most affordable production car in the entire world, and it was one of the primary reasons why it received so much attention when it was released.
Compared to the Volkswagen Beetle, this vehicle has an extremely low price. The Beetle that was made in Mexican factories, however, came with the low retail price of just $5,300 or $9,567 adjusted for inflation for today. Only a select number of customers were able to purchase the vehicle at that price though, and the price for the basic Nano rose by 2012 because of increasing material costs as well as a number of other factors. The second generation of the Nano is expected to go on sale in the United States by 2015, and the original was actually not street legal in the U.S and cannot be sold as a grey market important until 2034, which is when the 2009 models receive a 25-year exemption from the US Customs and Border Protection.
Despite the fact that there is a very viable dealership network in the U.S through the Jaguar and Land Rover division of Tata, the carmaker will not use either Jaguar or Rover to sell the Nano. When this vehicle was designed, there were many different measures taken to lower production costs, which is the main reason why it was priced so cheaply when it first came out.
There has been discussion of an electric version of the Tata, and even though this carmaker displayed an electric version of the Nano at the 2010 Geneva Motor Show, so far there has been no such vehicle made available on the market. The Nano CNG emax launched in October of 2013, and it is designed to run on either gasoline or compressed natural gas. Originally though, this vehicle will be sold in Delhi as well as parts of Maharashtra and Lucknow, where the CNG is currently available at fuel outlets. There is no doubt that the Tata broke convention with its design as well as low price in India and continues to be popular in markets around the world.