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Driving On the Cheap
By Janani Ganesh, India
January 2008 saw the launch of a new revolution in New Delhi (India) at the 9th Annual Auto Expo that is certain to change the face of transportation in India. It's called the Nano and because it offers even the lowest income groups in India an affordable and attractive mode of transportation, it has spawned a new mini-auto industry.
"By joining the ranks of car manufacturers, Tata Industries has proven that India can be competitive in ways that America's General Motors can't. GM continues to place their weight behind the development of super-sized suburban cars at a time when the price of gas is only going up and even American consumers are feeling the pain at the pump." -Janani Ganish
Driving cameras into gear unmatched by even the greatest of Bollywood stars, the Nano made its debut entrance driven by Ratan Tata, chairman of Tata Sons. To the theme song "2001: A Space Odyssey", Tata drove what looked like a white bubble car onto center stage where it joined two other Nanos.
The Nano, Tata said, responds to 21st century family lifestyle needs. "I had observed families riding on two-wheelers - the father driving the scooter, his young kid in front of him, his wife seated behind him holding a little baby [and this] led me to wonder whether one could conceive of a safe, affordable, all-weather form of transport for such a family," Tata said. "It took Tata Motors' engineers and designers about four years to realize this goal. Today we have a People's car which is affordable yet built to meet safety requirements and emission norms, to be fuel efficient and low on emissions."
A little over 10 feet long and nearly five feet wide, a four-door Nano is powered by a 623 cubic centimeter displacement engine and a multi-point fuel injection two-cylinder petrol engine which is located at the back of the car. With 33 horsepower, the Nano is capable of traveling at a speed of 65 miles an hour.
Its four small wheels are at the absolute corners of the car to improve handling. There is a small trunk, big enough for a duffel bag. The lean design strategy has helped minimize weight, which helps maximize performance per unit of energy consumed and delivers high fuel efficiency. Performance is controlled by a specially designed electronic engine management system.
The base price of the Nano is expected to be Rs 1.2 lakh (a little more than $2500) which includes road tax and delivery. Other amenities, such as a radio and air conditioning will cost more.
"I hope they launch the car fast!! Its really cool and I hope it comes in a variety of colors," said 20 year old Kasturi Karuna - although Shekhar Sahu disagrees. "It's definitely not cooler than a bike," he said. "It's just another tiny car with no legroom. I'll prefer a Harley Davison or a Ducati any day."
Despite criticism that in the wake of rising prices such a low cost car would necessarily cause manufacturers to cut corners and compromise on safety, Tata and his team are planning to roll out 2,500,000 Nanos a year starting this September.
By joining the ranks of car manufacturers, Tata Industries has proven that India can be competitive in ways that America's General Motors can't. GM continues to place their weight behind the development of super-sized suburban cars at a time when the price of gas is only going up and even American consumers are feeling the pain at the pump.
The Nano's future however, remains uncertain. A recent survey conducted on the general public in India brought a wide range of responses. Many upper middle class families said that they would consider buying a Nano as a second car for their family and people earning far less seemed excited at the prospect of owning their first car.
18-29 year olds gave Nano a mixed response. Some said they would prefer to be environmentally conscientious and ride their bikes over driving the Nano while others said that they wanted to wait to buy a more substantial car after they started earning money.
But there were many young people who said they eagerly awaited the opportunity to buy the car this fall. Establishing a new trend with its rising popularity, the Nano is a model for other manufacturers like Bajaj Motor Sports which is also planning to roll out a new car designed for the masses.
Dealers however, are worried about meeting their margins. Since the cost of the car is very low, commissions will be slim pickings unless they are able to rouse up a lot of volume in sales. With the first cars expected to roll out from the Singur plant in West Bengal, Tata Motors has ambitious plans of offering the Nano in emerging markets like Latin America, Southeast Asia and Africa.
