MUMBAI, India — Tata Motors on Monday launched its Nano, billed as the "world's cheapest car," with word that the first 100,000 vehicles will be sold through a lottery. Deliveries of the $1,981 Nano minicar will begin in India in July.
A European version called the Tata Nano Europa is planned for 2011. There are no plans as yet to sell the stripped-down Nano in the United States.
"In view of the expected significant demand and limited production capacity initially until the Sanand plant is fully ramped up to capacity, the Tata Nano will be available through a booking mode," said Tata Motors, the Indian owner of Jaguar and Land Rover in a statement.
What this means is that prospective buyers of the Nano must buy an "application form" for the equivalent of about $6, starting on April 9. Buyers will be chosen "through a computerized random selection process" within 60 days of the closure of bookings on April 25. Those who are unsuccessful will stay on a waiting list for the car.
Media reports say the State Bank of India will partner with Tata on a plan that will allow low-income buyers to drive home a Nano with an initial payment of around $57.
Tata said the Nano will be available in three trim levels: standard, CX and LX. The top-of-the-line LX gets several amenities, including central locking, front power windows, foglamps, electronic trip meter, a cupholder and a rear spoiler. The Indian automaker said the Nano has the "smallest exterior footprint for a car in India but is 21 percent more spacious than the smallest car available today."
The Nano is equipped with a 34-horsepower two-cylinder engine with a top speed of 65 mph. It has a warranty of 18 months or 15,000 miles. Accessories include alloy wheels, body kits and decals. Tata said it will also market a Nano phone and a Titan Nano watch.
Inside Line says: If and when the Tata Nano reaches these parts, it's unlikely that U.S. buyers would put up with a lottery system. But it will be interesting to see if it works from afar. — Anita Lienert, Correspondent
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