Big launch for car with tiny price

The world's cheapest car has been launched in the Indian city of Mumbai. Skip related content

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Tata Motors, India's top vehicle maker, unveiled the Nano in a move that could dramatically change the auto market in the world's second most populous nation.

The four-seater Nano had been due to go on sale in late 2008 but a dispute about the relocation of its manufacturing plant from West Bengal to Gujarat delayed proceedings.

Nanos will be rolled out from Tata Motors' existing car factories in Pune in western India and Pantnagar in the north, and are expected to go on sale from around mid-2009.

The ex-factory price is 100,000 rupees (£1,400). Customers will then have to add on dealer charges and taxes, taking the on-the-road price to 130,000 rupees (£1,767), according to dealers.

However, customers could face a three-year wait for the vehicle, according to analysts.

One Mumbai resident, Sushant Vagel, said: "It is the world's cheapest car and it is useful for middle class people like me and I am definitely planning to buy this car."

Another local, Devndra Arya, said: "The dream car that Tata has launched for the common man, we want to thank Tata for that."

Analysts estimate only about 50,000 cars will be available in the first year until the 250,000 capacity unit in Gujarat comes on-stream.

Tata Motors Chairman Rata Tata has said his inspiration for the cheap car was the common sight of a family of four riding on a motorbike.

The Nano has an all sheet metal body and safety features include crumple zones, intrusion resistant doors, seat belts, strong seats and anchorages. Tata says its tubeless tyres, apart from reducing friction, provide better balance and stability.

A version for the European markets, Tata Nano Europa, will have even more stringent safety standards with anti-lock brake systems and airbags. This version also has low carbon dioxide emission of less than 100 grams per kilometre.

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