The Tata Nano is a compact city car that was manufactured and marketed by Indian automaker Tata Motors over a single generation, primarily in India, as an inexpensive rear-engined hatchback intended to appeal to current riders of motorcycles and scooters — with a launch price of one lakh rupees or US$2500 in the year 2008.
Numerous factors of sales volume, including delays during the factory relocation from Singur to Sanand, early instances of the Nano catching fire, the perception of the car being unsafe and lacking quality due to cost cutting led to increased reliability. Tata Motors projected production of 250,000 annually at launch, actually achieving sales of 7591 for model year 2016-17. The project lost money for Tata, confirmed by former Tata Sons chairman Cyrus Mistry and confirmed by current Tata Motors management.
In 2017, Tata Motors said manufacture would continue due to the Tata's emotional commitment to the project. In 2018, Cyrus Mistry, former Chairman of the Tata Group, called the Tata Nano a project in the works with China, with production revised in May 2018.
After successfully launching the low cost Tata Ace truck in 2005, Tata Motors began development of an affordable car that would appeal to the many Indians who ride motorcycles. 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 labour.. The nonessential features include, removal of the passenger's side wing mirror, having one wiper blade, having only three lug nuts per wheel, removal of the fuel filler cap from the fuel tank. .
The introduction of the Nano received much media attention due to its low price of 1 lakh rupees (Rs. 100,000). Some promotional material labeled the vehicle as "The People’s Car".
Expectations created for the car during the run up to its production may have been out of proportion with its realised success. A 2008 study, by Indian rating agency CRISIL, thought the Nano would expand the nation's car market by 65%, but, as of late 2012, news reports have detailed the underwhelming response of the Indian consumer to the offering; sales in the first two fiscal years after the car's unveiling remained steady at about 70,000 units although Tata appears intent on maintaining a capacity to produce the car in much larger quantities, some 250,000 per year, should the need arise.
It was anticipated that its 2009 debut would greatly affect the used car market, and prices did drop 25–30% prior to the launch. Sales of the Nano's nearest competitor, the Maruti 800, fell by 20% immediately following the unveiling of the Nano. It is unknown if the Nano has had a lasting effect on the prices of and demand for close substitutes. In July 2012, Tata's Group chairman Ratan Tata, who retired in January 2014, said that the car had immense potential in the developing world while admitting that early opportunities were wasted due to initial problems. Due to the sales drops, only a single unit was produced in June 2018.
Tata Motors announced in 2006 that the Nano would be manufactured in Singur, West Bengal. Local farmers soon began protesting the forced acquisition of their land the new factory entailed. Tata first delayed the Nano launch and later decided to build the car in a different state, Gujarat, instead.
Announced as the most affordable 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. Only the very first customers were able to purchase the car at that price, and as of 2017, the price for the basic Nano starts around ₹ 215,000. Increasing material costs may be to blame for this rapid rise in price.
Compared to the Volkswagen Beetle it had a relatively low price, though still high in terms of the average salary of an Indian industrial worker / farmer. In 1990, a Beetle from Mexican factories was priced at $5,300, about $10,164 in today's money. The Ford Model T's initial price was about $850, equivalent to $23,702 today. The price of the Nano was only just higher than the corrected price of the Briggs and Stratton Flyer of the 1910s, with the Flyer costing US$125 ($1,767 in 2016), even though the Flyer would today hardly be considered more than a go-kart.
The original Nano is not street legal in the US, and cannot legally be sold as a grey market import until 2034, when the original 2009 models receive a 25-year exemption from the US Customs and Border Protection. Despite a readily-available dealership network in the US through the Jaguar Land Rover division of Tata, Tata Motors did not use Jaguar Land Rover to sell the Nano.
The Nano's design implements many measures to reduce manufacturing costs.
Comparison with the Maruti Alto 800, the Tata Nano's closest competitor:
The Nano (2012) was a 38 PS (28 kW; 37 hp) car with a two-cylinder 624 cc engine mounted in the rear of the car. The car complied with Bharat Stage 4 Indian Emissions Standards, which are roughly equivalent to Euro 4.
The development of the Nano led to 31 design and 37 technology patents being filed.
In May 2015, to revive the model's sales, Tata Motors proposed a redesign both inside and outside the car: the name was changed to GenX Nano to underline the changes, the range was offered in 21 different versions and a 5-speed semi-automatic transmission was introduced. Electric power steering, air conditioning, and Bluetooth radio were available on top models in addition to new colors and new alloy wheels. The body was strengthened and the front and rear bumpers were also changed, which slightly increased the length to 3,164 millimeters. The interior was also redesigned with new fabrics and improved soundproofing of the model. The rear opening door and the 5-seat homologation were also introduced. The engine remained the 2-cylinder 624 cc (38.1 cu in) with 38 hp.
The Nano was driven by a petrol engine. Though several variants were proposed, none were put into production. An upscale version was shown at an autoshow.
Tata Motors signed an agreement in 2007 with a French firm, Motor Development International, to produce a compressed air car Nano. While the vehicle was supposed to be able to travel approximately 200 kilometres (120 mi) on $3 US of electricity to compress the air, Tata's Vice-President of Engineering Systems confirmed in late 2009 that vehicle range continued to be a problem.
Tata discussed the possibility of producing an electric version, and while it showcased an electric vehicle Nano at the 2010 Geneva Motor Show, no such car came onto the market.
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