It will be launched in India later in 2008.
Tata said: “Tata Motors’ engineers and designers gave their all for about four years to realise this goal. Today, we indeed have a people’s car, which is affordable and yet built to meet safety requirements and emission norms Nano can receive 4 confortable seats
“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,” Tata claimed.
The car will be offered in both standard and deluxe versions. The base version is just that – no radio, air conditioning, passenger-side mirror and only one windscreen wiper.
“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. The car has a continuously variable transmission and uses 5l/100km.
The Nano is said to exceed all current Indian safety regulatory requirements though these are far short of norms in developed markets such as the US and western Europe.
According to the Associated Press (AP), dealers will sell the basic model for less than 2,000 € but customers will pay slightly more than that due to taxes and other charges.
While the price has created a buzz, the news agency said critics say the vehicle will lead to possibly millions more cars hitting already clogged Indian roads, adding to mounting air and noise pollution problems. Others have said Tata will have to sacrifice quality and safety standards to meet the target price.
AP said analysts believe the Nano may force other manufacturers to lower their own pricing. Renault and partner Nissan Motor are trying to determine if they can sell a compact car for less than 2,500€.
For now, the news agency added, the car will be sold only in India, but Tata has said it eventually hopes to export it. The Nana could become the basis for other similar super-cheap models in developing markets around the world.