The world’s cheapest car, Tata Nano, will be launched today with its makers hoping it will be a hit with India’s emerging middle-classes.
Just 30,000 to 50,000 of the 4-door Nanos are likely to be sold in the first year because of limited production capacity – a fraction of the company’s original planned target, auto sector experts said.
And they say the sporty, jellybean-shaped car which has attracted world headlines thanks to its price tag of just Rs.1,00,000 ($2,000) – cheaper than some laptop computers – will not contribute much immediately in the way of profits to troubled Tata Motors due to its small volumes.
This is how it rolls out..
Last October, Tata Motors pulled the Nano car project out of Singur in West Bengal, even though the plant was 90% completed.
The retreat followed months of violent demonstrations by activists and farmers evicted from their land that raised fears about India’s attractiveness for foreign investors.
The Nano now is being rolled out from two existing Tata manufacturing plants in what Mr.Ratan Tata has described as a “makeshift kind of operation.”
Tata Motors’ new Nano plant in Sanand, Gujarat is not expected to be ready until the end of 2009.
In the second year, Nano sales could jump by over 200% to 1,50,000 cars, said Mr.Vaishali Jajoo, an analyst at Angel Broking, as production ramps up at the Gujarat plant.
Source: Auto India