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Courtney Messenbaugh
Kids: 2 Ages: newborn & 2
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Beep, Beep! Tata Nano is Cheap, Cheap!

Feb 04 2008 by Courtney Messenbaugh

Tata Nano

2/04/08

Can a $2,500 Car Really Be Safe?

You've probably heard about Indian carmaker Tata's new "cheapest car on the planet," the Nano, which will sell in India for the equivalent of about $2,500. Cheap indeed.

Automotive pundits across the world have been spouting their opinions about this "people's car," as Tata calls it. In fact, this little five-seat sedan has garnered so much attention I doubt Tata will have to invest much in an advertising budget. It has no air conditioning (which is OK, because it never gets hot in India), no power windows and no power steering. It meets Indian safety and emissions standards, and while I wasn't able to find a comparison of those standards versus U.S. standards, something tells me they're slightly different.

On the one hand, Tata has positioned this vehicle as being able to put car ownership within reach of the Indian subcontinent's masses. That's a tough point to argue; there are about 1.1 billion people in India and there are very high levels of poverty, but they can't all fit on buses, for crying out loud. On the other hand, lots of concerns have arisen about this car adding to the already significant pollution generated in that country.

The most pressing question is whether a car that sells for about $2,500 can really be reliable and safe. If so, why haven't we already seen stripped-down cars in this country selling for lower prices? The cheapest cars on sale here now start around $10K.

I couldn't find any press contact for Tata (or any other type of contact for that matter), so I don't have its side of the story, nor can I prove that the car will be unsafe or unreliable. What I do know is that technology and engineering have made great strides in recent years. Maybe the Nano has a good shot at being the $2,500 wonder its makers claim it will be. I hope they're right, especially for the sake of all of their customers.

Posted on Feb 04, 2008 | Gas Prices | Permalink | Comments (22)

User Comments

I had read somewhere that the purpose of the Nano is that it’s a safer alternative to all the motor scooters zipping around.  I have no idea if that’s the company’s stance, that it’s better to have a whole car than just a helmet.  Right?

Posted by: Sara Lacey | Feb 04, 2008 1:10:20 PM

Is it just me or is the name ‘Nano Tatas’ completely hilarious?  (and those who know me know that I have allowance to joke about it).

Posted by: Chief Mama | Feb 04, 2008 1:45:37 PM

I read a study by a visiting professor from India in the United States, that the INTRINSIC VALUE (the cost of the raw materials and labor necessary to construct one) is approximately $2,000.  That analysis was published almost a decade ago, and basic commodity prices (steel, plastics, rubber, etc) have risen considerably.  Once marketing, distribution and other ancillary costs are considered, will it be possible for TATA to profit on this vehicle at all?

Posted by: Wole M. Fayemi | Feb 04, 2008 3:52:07 PM

“It has no air conditioning (which is OK, because it never gets hot in India)”

I am an expatriate from India. It can get upto 49 deg C (120 deg F)during peak summers. Hence the above statement is skewed and seems to justify the lack of an AC in a Nano. Most basic versions in India don’t have AC. So it is seen as an accessory and not a necessity.

Posted by: venkat | Feb 04, 2008 5:28:36 PM

Hi venkat,

The statement about it never getting hot in India was meant tongue-in-cheek. 

Hope that clears up any confusion!

Posted by: Sara Lacey | Feb 04, 2008 6:09:55 PM

Hey people,Why bother about something happening in some part of the world?Let the Indians have their Nanos or whatever. The US economy is steamrolling downwards so fast that Yankees would soon be desperate for second-hand scooters from India.

Posted by: Manmadh | Feb 05, 2008 12:35:59 AM

There is going to be more poverty in America soon, if you keep invading countries. If you need a contact for goto Tata.com and look up contact info. It is not hard, the site is in English.

Posted by: Jagrat | Feb 05, 2008 12:48:43 AM

The best Car for Indian Market but worried that i can avoide the Traffic by its Size

Posted by: Rishikesh | Feb 05, 2008 6:52:09 AM

Wole, I did get ahold of someone from Tata and asked them the very same question you posed about profit and they would not disclose profit margins to me - seems like you might be on to something, but they could be fine losing a bit on this car since most of their business is in commercial vehicles from what I understand. 

Jagrat, thank you for the kind instructions on finding a contact, I did indeed find one and it just happened that they got back to me after deadline, but they were very helpful.

Posted by: Courtney | Feb 05, 2008 2:09:21 PM

venkat, as Sara noted, I was just being a little sarcastic about it not getting hot in India - as a mechanism to underscore the need to air conditioning.  I completely agree with you and do not condone the lack of AC.

Posted by: Courtney | Feb 05, 2008 2:11:19 PM

Sara, in the press release sent to me directly from Tata, they do not mention it as a replacement/safer alternative to the scooters, but rather as a vehicle for families.  That said, I saw many other articles from other sources that mentioned the scooter replacement theory and that does make some sense.

Posted by: Courtney | Feb 05, 2008 2:15:12 PM

You can contact Media Relations here….
http://www.tatamotors.com/contactus/contactus.php?ID=4

Posted by: AK | Feb 06, 2008 11:37:57 AM

The $2500 price is what the dealer is charged at todays prices.  The customer would pay more.  The future price, once produced would naturally be higher.

Tata is a large concern…a small profit margin on millions of automobiles would be acceptable.  8% might be a target profit.

The automobile itself is a true “stripper”, huge sections of the plain interior being cast of plastic in one piece.  No unnecessary gauges, chrome, gadgets…simple everywhere.  No chrome hubcaps, small tires and wheels, mechanical brakes, steering and transmission, small engine in the rear eliminates many components…singular dual function lights…possibly a heater, nothing else…no radio, lighter etc., bare stripped seats, bench seat in back…probably safety windshield only…bare storage is where you choose…no assists such as tie downs, movable panels, glove compartments, courtesy lights etc.  I am quite sure the rear windows do not roll down.

The car is designed to get you from here to there economically and protected from rain, cold and wind…the heat must be borne.

Great idea and one that should have been a standard offering by all automakers from the first Model T Ford…Studebaker tried it in 1955 and it sold poorly.

American people, when it comes to autos, are pigs…for sure.

Posted by: owlafaye | Feb 07, 2008 8:15:27 AM

I would like to see the Tata Nano in the States, but I would definately need some air-conditioning. I do think that this vehicle has gotta be safer than a scooter.

Posted by: Used cars | Feb 07, 2008 12:37:21 PM

A family car?  Who says you can’t put an entire family on a scooter?  The Tata is clearly unnecessary.

http://www.rat-patrol.org/Month/TaichungScooter.jpg

http://picasaweb.google.com/stefano.rosson/Cars/photo#5122358161870237234

Posted by: RL | Feb 08, 2008 8:06:18 PM

Any thoughts on the USA introduction of the Smartcar?

Posted by: Gary | Feb 22, 2008 12:46:17 PM

Hey.. just a few comments on the facts in your article…
1. Talking about safety, it may be comforting to know that the Tata Nano passed all important crash tests and infact comfortably meets all current international norms (even the strict EURO IV norms)
2. The cheapest car in india currently (before Nano is commercially available) is the Maruti Suzuki 800 (costing around 5000 $) - Its not $10k as mentioned in your post.
3. Regarding the Air conditioner, it should be noted that many cars are still available that come without air conditioners (buyer chooses which versionof a model he buys). If he needs an airconditioner, he can get the model of Tata Nano with an AC .. which is slightly more expensive (say around 250 dollars more). Also compared to a motorcycle where there is no safety, no protection from the direct sun… the Nano is a much better alternative.

4.It is not very difficult to find a contact from Tata. A google search would have been enough but you can go directly to http://www.tatapeoplescar.com or http://www.tatamotors.com to find a contact. If you still dont find one, mail me.


The only thing that worries me is traffic congestion on roads. The goverment is more responsible for that than Tata, but something needs to be done to address this by either the government or Tata. Passing the blame wont do any good!

Posted by: Karan | Mar 10, 2008 4:18:32 PM

Where can I order this car?

Posted by: jane garcia | Mar 24, 2008 5:23:05 PM

I’m in Phx. need a small car, Nano sound just right again where can I order the car. I await the place where I can buy this car in the Phx area. Thank you, Jane & Henry Garcia

Posted by: jane garcia | Mar 24, 2008 7:35:21 PM

hai dear tata motors..

      i am one of your fan.so i would like to know more about tata.and i wand to see its inside photoes and videos.i wand to know its luxury items.i mean A/C or powerwindow.hope you inform me..

Posted by: rahul | Apr 20, 2008 10:49:10 AM

No A/C ? Sooooo I live outside Las Vegas and do not have A/C in my cars, never have had it ! The scooter sales have gone up 25% in the last month…no A/C there ! Bring Nano’s or Tata’s or 3wheel trikes or whatever to the states, at $2500 you’d be the next Mr. Bill Gates !

Posted by: Tim Wasson | Jun 18, 2008 8:10:10 PM

Well, I personally hope we can have the nano in the U.S. and that the price is not upped to outrageous proportions.  Not everyone is as rich as Bush. This would be so great for students to get around town and low income seniors. Most importantly for people that cannot afford the outrageous prices of other cars. I ride a bike all year around but on days that it rains I am scared to ride.  A car like this would be just fine to get around in even if there are no frills.  I am hoping the price will be the same as in India. ($2,500 to $3,000.)

Posted by: Judy McClellan | Jun 17, 2009 8:05:45 AM

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