Tata plans to bring ultra-cheap Nano to U.S. in 3 years

GM will, no doubt, badge engineer it as the 2012 Corvette BelchFire 2 (2 cylinders)

Tata plans to bring ultra-cheap Nano to U.S. in 3 years

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Automotive News June 5, 2009 - 12:01 am ET UPDATED: 6/5/09 1:30 p.m. ET

Tata Motors, the Indian automaker that owns Jaguar and Land Rover, plans to bring the car known as the world's cheapest to the United States within three years.

David Good, a U.S. representative for Tata, confirmed statements made by Chairman Ratan Tata at a Cornell University forum this week and reported by Reuters. Customer deliveries of the Nano, which starts at about $2,500, are scheduled to begin in India next month.

Ratan Tata said it would arrive here in about two years, Good said in an interview today. "It might be two years and six months," he added.

The move stands to make Tata the second automaker to import India-built vehicles to the United States and represents a low-cost threat to established competitors. Global Vehicles U.S.A. Inc., of suburban Atlanta, plans to introduce pickups made by Mahindra & Mahindra Ltd. later this year.

The Nano "will need to meet all emission and crash standards," Tata told a panel Wednesday in New York at the inaugural Cornell Global Forum on Sustainable Global Enterprise. The executive said his company is also working to develop cars that run on fuels other than gasoline, such as clean diesel, biofuels and batteries.

Good, who attended the forum, said he couldn't outline how the Nano would be distributed. Options include creating the car's own network or channeling sales through Jaguar and Land Rover dealerships, he said. Tata Motors bought the two U.K. luxury brands from Ford Motor Co. for $2.3 billion in 2008.

Tata Motors plans to offer a European version of the car in 2011, the chairman said.

He got the idea to make a car that poor people could afford while thinking about the motorbike and scooter riders who maneuver through the streets of Indian cities with their children on board.

The four-seat Nano gets up to 65 mpg. Cheap labor helps keep the price down.

Production of the Nano was delayed by protests over land use where a plant was be located. The first 100,000 owners are being selected by lottery.

Reply to
Jim Higgins
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That will be good bye Detroit. 65 mpg @ $2,500 I would certainly buy one for city use. They have the right idea, like Henry Ford, a car poor poeple can afford. Americands and Canadians are going to need an option like that when the bailout corruption bill rolls on on the taxes.

While GM talks, the competition does.

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Reply to
Canuck57

They may bring it to the US. But it will NEVER be priced that low. Meeting the US NEW emissions standards for 2012 and the crass standards alone will add at least 1K to the price. As it is built now it doesn't come close to either. It is also going to effect the mileage.

It also isn't going to sell well. Take a look at all the cheap vehicles that have been introduced over the years, most have fallen flat on their face. Price is NOT a real motivator for most auto buyers. You HEAR that it is and many folks seem to think it is. However if you talk to dealers and auto sales people you will find that price is NOT top on the list. The first is Brand/Model, next is power train, then color. You have to go to #6 to find price.

Reply to
Steve W.

With a few adjustments, say $4,000. But I here you, protectionists and greedy governments are in a snit. Less cost and high MPG generates a lot less taxes as it costs people less. Good for the consumber, bad for Government Motors and government in general.

Most NA small vehicles fail because they are are over priced pieces of crap. Instead of listening to dealers, I prefer to let normal competative merkket forces rule. My guess is if you broght in 1,000,000 Nanaos and they sold for a fixed price of say $3,800 you would have no problems moving them. In fact, reserve one for me.

I know the quality of a F150 Lariat is superior to a Nano. But given I can buy 8-10 Nano's for the price of one... I will save the F150 for the highway and towing and use the Nano for the city. If it dies, just replace it.

Trouble is GM wants 10 times that much for a Volt. Which is going to sell better? A Tata Nano for $3,800 or a Government Motors Volt for $40,000?

Remember, this depression is about the middle class having less cash to spend. Many jobs are gone and on average family net income is spiraling downwards. And Obama's tax bill hasn't hit yet. And when you think about it, $40,000 for a vehicle is nuts.

Reply to
Canuck57

Our kooky friend Canuck obviously lives in his own dream world! I have asked him to tell us the color of the sky in his world but he never tells us.

$2,500 for a car? Hell one can not get buy motors scooter for $2,500 in the US or Canada LOL

Reply to
Mike

Funny. You wish.

When Walmart carries Tata Nano's I will be there to take a look.

Reply to
Canuck57

Imports seeking to present price competition are typically priced somewhat below domestic products at the time they are introduced, but not drastically below in the sense that you can buy them as a novelty in the way one might be tempted by the Nano's India-market price. Over time this may drive down prices - which is what you've seen with computers over the past 28 years. But you don't tend to see a $500 import appearing in the marketplace to compete with an entrenched $8000 product.

Reply to
cs_posting

Really? In 1980 one could buy fully loaded FULL size V8 car for around $8,500. In 1990 one cost around $18,000. In 2000 a MID size car cost around $27,000, including big rebates and it only had a V6. In 2010 the MID size V6 costs around $32,000, including big rebates and a 4cy costs around $27,000. LOL

Imports seeking to present price competition are typically priced somewhat below domestic products at the time they are introduced, but not drastically below in the sense that you can buy them as a novelty in the way one might be tempted by the Nano's India-market price. Over time this may drive down prices - which is what you've seen with computers over the past 28 years. But you don't tend to see a $500 import appearing in the marketplace to compete with an entrenched $8000 product.

Reply to
Mike

What's your point?

I see nothing in your post to contradict the contents of the post your responded to.

Reply to
cs_posting

Really? Perhaps, dummy, it is because you deleted the part to which I was replying to that said;

Imports seeking to present price competition are typically priced somewhat below domestic products at the time they are introduced, but not drastically below in the sense that you can buy them as a novelty in the way one might be tempted by the Nano's India-market price. Over time this may drive down prices - which is what you've seen with computers over the past 28 years. But you don't tend to see a $500 import appearing in the marketplace to compete with an entrenched $8000 product.

What's your point?

I see nothing in your post to contradict the contents of the post your responded to.

Reply to
Mike

There is absolutely nothing there that contradicts your large-car pricing example.

Reply to
cs_posting

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