An Overview About Tata Nano a Mini Car Producer

History OF TATA NANO

After having successfully launched the low cost Tata Ace truck in 2005, Tata Motors began development of an affordable car that would appeal to the many Indians who drive motorcycles.[4] The purchase price of this no frills auto was brought down by dispensing with most nonessential features, reducing the amount of steel used in its construction, and relying on low cost Indian labor.[citation needed]

The introduction of the Nano received much media attention due to its low price.[5]

Expectations and effects

One study, by Indian rating agency CRISIL, thought the Nano would expand the nation's car market by 65%.[6]

It was anticipated that its 2009 launch would greatly affect the used car market, and prices did drop 25-30% in the lead up to the launch.[7] Sales of the Nano's nearest competitor, the Maruti 800, dropped by 20% immediately following the unveiling of the Nano.[8] It is unknown if the Nano has had a lasting effect on the prices of and demand for close substitutes, however. In July 2012, Tata Group Chairman, Rattan Tata while admitting that Nano wasted an early opportunity due to initial problems, said that it has an immense potential in the developing world.[9]

Singur factory pullout

Main article: Tata Nano Singur controversy

Tata Motors announced in 2006 that the Nano would be manufactured in Singur, West Bengal.[10] Local farmers soon began protesting the forced acquisition of their land the new factory entailed.[10] Tata first delayed the Nano launch and later decided to build the car in a different state (Gujarat) instead.[11]

Price

Wikinews has related news: World's cheapest car launched in India, will go on sale in April

Announced as the least expensive production car in the world, Tata aimed for a price of one lakh rupees, or 100,000, which was approximately $2,000 US at the time.[12] Only the very first customers were able to purchase the car at that price, however, and, as of 2012, the price for the basic Nano...