Source: China Daily

03-23-2009 16:25

Special Report:   Tech Max

Tata Motors said it will launch its ultra-cheap Nano car in Mumbai today - a vehicle meant to herald a revolution by making it possible for the world's poor to purchase their first car.

But few predict the snub-nosed Nano will be able to turn around the company, which has been beset by flagging sales and high debt, anytime soon.

In this Jan. 11, 2009 file photo, Tata's Nano car is seen in an exhibition during the fourth Vibrant Gujarat Global Investors Summit in Ahmadabad, India. [Agencies]

The Nano, which is priced starting at about 100,000 rupees ($2,050), is a stripped-down car for stripped-down times: It is 3.1 meters long, has one windshield wiper, a 623cc rear engine, and a diminutive trunk, according to the company's website.

It does not have air bags or antilock brakes - neither of which is required in India - and if you want air conditioning, a radio, or power steering, you'll have to pay extra.

Tata Motors has been hard-hit by the global downturn. Commercial vehicle sales, its core business, have been decimated as India's growth slows, and consumers have had trouble getting affordable car loans.

The company declared a loss of 2.63 billion rupees ($54 million) for the October to December quarter, and it has been struggling to refinance the remaining $2 billion of a $3 billion loan it took to buy the Jaguar and Land Rover brands from Ford Motor Co in June.

Even the launch of the Nano has been scaled back.

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