Source: China Daily
03-23-2009 16:25
Special Report: Tech MaxTata 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.
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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.