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| World's cheapest car is launched | World's cheapest car is launched |
| (40 minutes later) | |
| The Tata Nano, the world's cheapest car, is being launched in India. | The Tata Nano, the world's cheapest car, is being launched in India. |
| Costing just 100,000 rupees ($1,979; £1,366), the Nano is being unveiled in Mumbai later, before going on sale across India over the next 10 days. | |
| Tata hopes the 10 feet (3 metre) long, five-seater car will be cheap enough to encourage millions of Indians to trade up from their motorcycles. | Tata hopes the 10 feet (3 metre) long, five-seater car will be cheap enough to encourage millions of Indians to trade up from their motorcycles. |
| Car industry analysts estimate it will take five or six years for Tata to start to make a profit from the Nano. | Car industry analysts estimate it will take five or six years for Tata to start to make a profit from the Nano. |
| Factory row | Factory row |
| The four-door Nano has a 33bhp, 624cc engine at the rear. | The four-door Nano has a 33bhp, 624cc engine at the rear. |
| Advertisement | Advertisement |
| Inside the tiny Tata Nano (first broadcast 2008) | Inside the tiny Tata Nano (first broadcast 2008) |
| The basic model has no airbags, air conditioning, radio, or power steering. However, more luxurious versions will be available. | The basic model has no airbags, air conditioning, radio, or power steering. However, more luxurious versions will be available. |
| A slightly bigger European version, the Nano Europa is due to follow in 2011, and is expected to cost nearer to £4,000. | A slightly bigger European version, the Nano Europa is due to follow in 2011, and is expected to cost nearer to £4,000. |
| Analysts said that if the car proves an immediate hit in its home market, Tata may struggle to meet demand. | Analysts said that if the car proves an immediate hit in its home market, Tata may struggle to meet demand. |
| This is because the main Nano factory in the western state of Gujarat, which will be able to build 250,000 cars a year, is not due to open until next year. | This is because the main Nano factory in the western state of Gujarat, which will be able to build 250,000 cars a year, is not due to open until next year. |
| In the meantime, Tata will only be able to build about 50,000 Nanos at its existing plants. | In the meantime, Tata will only be able to build about 50,000 Nanos at its existing plants. |
| The delay happened when Tata had to abandon plans to build the Nano in a new plant in the eastern state of West Bengal due to a row over land acquired from farmers. | The delay happened when Tata had to abandon plans to build the Nano in a new plant in the eastern state of West Bengal due to a row over land acquired from farmers. |
| This caused the launch of the Nano to be put back by six months. | This caused the launch of the Nano to be put back by six months. |
| 'Milestone' | 'Milestone' |
| Tata's managing director Ravi Kant said that bookings for the car will start on 9 April, and that a ballot will then select the first 100,000 people to get their Nano. | Tata's managing director Ravi Kant said that bookings for the car will start on 9 April, and that a ballot will then select the first 100,000 people to get their Nano. |
| I want to be able to take my wife out for a drive in a car - my own car Indian chauffeur Gopal Pandurang World's cheapest car hits Indian market Send us your comments | I want to be able to take my wife out for a drive in a car - my own car Indian chauffeur Gopal Pandurang World's cheapest car hits Indian market Send us your comments |
| Deliveries will then begin from July. | Deliveries will then begin from July. |
| Tata owner Ratan Tata has described the launch as a milestone. | Tata owner Ratan Tata has described the launch as a milestone. |
| "I think we are at the gates of offering a new form of transport to the people of India and later, I hope, other markets elsewhere in the world," he said. | "I think we are at the gates of offering a new form of transport to the people of India and later, I hope, other markets elsewhere in the world," he said. |
| Quarterly loss | Quarterly loss |
| Even if Tata can sell 250,000 models a year, it will add only 3% to the firm's revenues, says Vaishali Jajoo, auto analyst at Mumbai's Angel Broking. | Even if Tata can sell 250,000 models a year, it will add only 3% to the firm's revenues, says Vaishali Jajoo, auto analyst at Mumbai's Angel Broking. |
| "That doesn't make a significant difference to the top line," he said. | "That doesn't make a significant difference to the top line," he said. |
| "And for the bottom line, it will take five to six years to break even." | "And for the bottom line, it will take five to six years to break even." |
| Yet with seven million motorcycles sold last year in India, Tata is eying a huge marketplace for the Nano. | Yet with seven million motorcycles sold last year in India, Tata is eying a huge marketplace for the Nano. |
| Like almost all global carmakers, Tata has seen sales fall as the global economic downturn has continued. | Like almost all global carmakers, Tata has seen sales fall as the global economic downturn has continued. |
| The firm made a 2.63bn rupees loss for three months between October and December. | The firm made a 2.63bn rupees loss for three months between October and December. |
| In addition, Tata is struggling to refinance the remaining £2bn of its £3bn loan it took out to buy the Jaguar and Land Rover brands from Ford in June of last year. | In addition, Tata is struggling to refinance the remaining £2bn of its £3bn loan it took out to buy the Jaguar and Land Rover brands from Ford in June of last year. |