Despite the name, the new Nano car by India auto manufacturer Tata Motors has little to do with nano materials. The vehicle takes its name from nano science because it is so small — in the same way that the nanoparticle is the smallest and most revolutionary of all particles. Newsweek Magazine called the Nano part of “a new breed of 21st-century cars” that embody “a contrarian philosophy of smaller, lighter, cheaper.” The day of the Nano launch, one veteran journalist remarked, “I haven’t seen this many cameras in my six years in South Asia. You couldn’t even buy advertising like this.” Auto makers say that they want to make as much of an impact on auto manufacturing as Ford made with the automated assembly line.
This September, Tata Motors (India’s biggest auto manufacturer) unveiled the cheapest car to hit the road. The Nano has been referred to by the company as “the People’s Car,” which will cost motorists just 1 Pakistani lakh (or $2,500 in US dollars). Even though commodity prices have risen significantly, Tata has kept its four-year promise to consumers by keeping the cost to them unbelievably low. The four-door sedan seats four people, runs off a two-cylinder gas engine in the rear, gets 50 miles to the gallon and features an all-sheet metal body that looks very much like the Mercedes Smart Car. Drivers who are used to creature comforts like air conditioning, power steering, antilock brakes, electric windows and rear seatbelts may be disappointed to learn that this gem of nanoscience carries none of those things. Some of these Nano accessories — like air conditioning — may be available at an extra cost, but leaving out some of the fanciness is part of the allure with this simple vehicle.
As with any vehicle, the Nano car will have several model varieties. The Tata Motors’ base model will have no extras but will be the cheapest of any car on the market. The Deluxe Nano CX includes air conditioning; the Luxury Nano LX has air conditioning, power windows, fabric seats and power locks for 49,000 Rupees more than the base model. The Nano Europa will have a larger body, bigger 3-cylinder engine, anti-lock brakes and will meet all European crash/emission standards. In the future, proposals include creating a new Nano hybrid, a diesel engine version, an engine that runs off compressed air and an electric Nano.
As predicted, Tata Motors’ new Nano has sent ripples through the car market, as other manufacturers look for innovative ways to compete. This month, US automaker Ford Motor Co. announced that it would begin manufacturing the four-door Figo in India, with secondary plants throughout China. While they were reticent to reveal the price, one analyst says he anticipates the Ford Figo to sell for $6,000 – $8,000, which will put it in close competition with the luxury line of Nano car offerings. “This new car will be a game changer,” said Michael Boneham, president of Ford India. “It will give us muscle in the heart of the Indian market.”
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