India Automobile News

Tata Nano’s launch could expand the Indian car market by 65%, according to rating agency CRISIL. The low price makes the car affordable for families with incomes of Rs 1 lakh per annum, the agency said.

The increase in the market is expected to push up car sales by 20% over the previous year. “The unveiling of Tata Nano, the cheapest car in the world, triggers an important event in the car market. Based on the statement by company officials, CRISIL Research estimates the consumer price of the car at around Rs 1.3 lakh. This brings down the cost of ownership of an entry level car in India by 30%,” the company said in a report.
CRISIL said the launch will prompt other players to enter the mini car category over the next few years. These launches will entice a section of two-wheeler owners (currently nearly 50 million) to upgrade to cars.
CRISIL has prepared these estimates by projecting the income demographic transition pattern in India and the cost of ownership of existing and new entry-level cars. Given the shape of the income distribution pyramid in India, the new price point translates into a 65% increase in the number of families that can afford a car.

At the significantly redefined threshold for car ownership in India, annual car sales have the potential to increase by 20% over the sales expected in 2007-08.

India Auto Expo 2008
Source :Rediff.com

Its mono-volume design, with wheels at the corners and the powertrain at the rear, enables it to uniquely combine both space and manoeuvrability, which will set a new benchmark among small cars.

When launched, the car will be available in three versions. All versions will offer a wide range of body colours, and other accessories so that the car can be customised to an individual's preferences.


Nano has a rear-wheel drive, all-aluminium, two-cylinder, 624 cc, 33 bhp, multi-point fuel injection petrol engine. This is the first time that a two-cylinder gasoline engine is being used in a car with single balancer shaft.

The lean design strategy has helped minimise weight, which helps maximise performance per unit of energy consumed and delivers high fuel efficiency. Performance is controlled by a specially designed electronic engine management system.

Nano's safety performance exceeds current regulatory requirements. With an all sheet-metal body, it has a strong passenger compartment, with safety features such as crumple zones, intrusion-resistant doors, seat belts, strong seats and anchorages, and the rear tailgate glass bonded to the body. Tubeless tyres further enhance safety.

Tata Motors, the country's largest automobile manufacturer, will unveil its much-touted 'people's car', better known as the Rs one-lakh car, tommorow

The company said in a statement that while it would unveil the car on January 10 during the expo, the commercial launch would take place later in the year.

The launch would mark the realisation of a dream for Tata Sons Chairman Ratan Tata, who is looking forward to silence critics of the project, just as he did with the company's first passenger car Indica.

Tata had in the past said that the 'people's car' would be a gearless one with a rear engine and meet all safety as well as emission norms.

While the initial plan is to come out with a 660cc petrol engine, the company is also planning to come up with the diesel variant. However, Tata Motors is facing a pricing issue with input costs going up manifold since the inception of the project. Tata had earlier this year at the Geneva Motor Show hinted that ultimately customers might have to pay a tad more than Rs one lakh for the car.

Besides, the company had to face political opposition for setting up its manufacturing plant at Singur in West Bengal, which ultimately began earlier this year.

source: Economictimes