Nano launch: Indian auto industry on verge of new dawn-break

New Delhi, Mar 22 (PTI) History will be created in Mumbai
Monday when Tata Motors launches the world's least expensive
car, Nano -- a car that can redefine personal transportation
in modern India.

Described as "People's Car" by Tata Group Chairman Ratan
Tata, Nano's commercial launch will mark a milestone in a
journey, which was replete with controversies, hurdles and
criticism from competitors.

As far as customers are concerned, they can expect to own
a car coming at a price between Rs 1.20 lakh and Rs 1.30 lakh,
depending on the version of Nano, although bookings will start
only in April second week.

According to dealer sources, if the company keeps the
ex-factory price at Rs 1 lakh, as promised by Tata, then the
base model could easily have an on-road price of Rs 1.20 lakh
after adding taxes such as excise duty, education cess and
road tax, along with transportation cost, local taxes,
insurance and registration fees and a lifetime parking fees
(wherever applicable).

Last month, Tata Motors had appointed public sector
lender State Bank of India as the sole booking agent for the
world's least expensive car from the stable of Tatas. The
booking amount is reportedly fixed at Rs 70,000.

Ever since the idea of making a car costing only Rs 1
lakh for Indian passengers was conceived way back in 2003 by
Ratan Tata, his dream had to face challenges -- both technical
and political.

At a time when input costs were soaring, keeping cost of
production of a comfortable mini car powered by a 623cc engine
giving a competitive mileage, was a challenge big enough.

While Tatas were able to overcome it, the group was
unable to beat political challenge from Trinamool Congress and
had to shift manufacturing base from the original location at
Singur in West Bengal to Sanand in Gujarat.

It delayed not only the original plans for the commercial
launch of Nano by about five months, but also affected its
availability.

Till the time the Sanand facility is ready by 2010, Nano
will be produced from Tata Motors' factories at Pantnagar in
Uttarakhand and Pune in Maharashtra in limited numbers.

After the launch in Mumbai, Nano would be displayed at
the company's dealerships from the first week of April, while
the bookings would start from the following week. The booking
process and other details of the Rs one lakh car would
be announced on the day of launch.

While critics had been sceptical about the car meeting
safety and emission norms, Tata had said during the unveiling
of Nano on January 10, 2008, in Auto Expo in Delhi that the
car would meet Bharat Stage-III emission norms and could also
meet the stringent Euro 4 norms. The car has also gone through
a full frontal crash test as per standard norms, he said.

Besides, the European version of the car was unveiled in
the first week of this month at the Geneva Motor Show. The
company plans to roll out the car by 2011, complying with Euro
V emission norms and some added features.

The Nano is eight per cent shorter than Maruti 800, the
cheapest car on offer currently in India, on bumper to bumper
length, but is 21 per cent more spacious, Tata had claimed in
Auto Expo. The 623cc Nano comes with a 33 HP petrol engine,
but a diesel variant would also be launched soon.

The Nano would come in three variants -- standard and two
deluxe models with air conditioning.