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World's cheapest car to hit roads First Nano owner gets keys to car
(about 5 hours later)
The world's cheapest car, Nano, is set to hit the roads of India with the first customer receiving keys to the vehicle in the city of Mumbai. The first owner of the world's cheapest car, the Tata Nano, has taken possession of his vehicle in the Indian city of Mumbai.
Ratan Tata, the head of Tata Motors which manufactures the car, will personally deliver the first car to a customer at a showroom in the city. Ratan Tata, the head of Tata Motors which manufactures the car, handed over the keys to customs official Ashok Raghunath Vichare at a Tata showroom.
Tata Motors says it has received over 200,000 orders for the car. "I am happy to be the first customer. This is a common man's car," he said
The basic Nano costs 1 lakh, or 100,000 rupees ($2,025; £1,340), and a 95,000 rupees deposit must be paid upfront. Tata Motors says it has received more than 200,000 orders for the car which costs 100,000 rupees ($2,025).
Tata Motors believes the car will revolutionise travel for millions of people in India.
Some 200,000 people initially placed orders for the Nano. About half of these were selected from a ballot to be the first recipients of the Nano.
Among them, reports say, are a roadside cobbler from Mumbai, a 82-year-old former police officer, and India's first female photo journalist, Homi Vyarawalla, who is in her 90s.
Delivery delays
Analysts say that if the car proves an immediate hit in its home market, Tata may struggle to meet demand.Analysts say 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. Delays arose when Tata had to abandon plans to build the Nano in a new plant in the state of West Bengal because of a row over land with farmers.
'Significant' Analysts say the delivery of the first car to the customer was "very significant" considering the fact that the launch had been delayed.
Delays arose when Tata had to abandon plans to build the Nano in a new plant in the state of West Bengal due because of a row over land with farmers.
Analysts say that the delivery of the first car to the customer was "very significant" considering the fact that the launch had been delayed.
"They (Tata Motors) have been talking about delivering this car since last year and subsequently due to the problems they have had with moving the factory they have had to delay it by at least one year," automobile magazine editor Darius Lam told the AFP news agency.
Critics say the Nano will add to India's already clogged up roadsCritics say the Nano will add to India's already clogged up roads
"It really shows that now they are getting their production in hand and are able to start delivering."
The four-door Nano has a 33bhp, 624cc engine at the rear.The four-door Nano has a 33bhp, 624cc engine at the rear.
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.
Reports say some 100,000 people have been selected from a ballot to be the first recipients of the Nano.
Among them, the reports say, are a roadside cobbler from Mumbai, a 82-year-old former police officer, and India's first female photo journalist, Homi Vyarawalla, who is in her 90s.
Half of the orders were for the most deluxe version of the car, which comes with air conditioning and electric windows, and the remaining 30% for a mid-range model.Half of the orders were for the most deluxe version of the car, which comes with air conditioning and electric windows, and the remaining 30% for a mid-range model.
Tata said only 20% of customers opted for the cheapest version of the car.Tata said only 20% of customers opted for the cheapest version of the car.
The booking fee, or deposit, required for the deluxe model is 140,000 rupees, which has a full price of 185,000 rupees.
Tata hopes the low cost of the car will encourage millions of Indians to trade up from their motorcycles.Tata hopes the low cost of the car will encourage millions of Indians to trade up from their motorcycles.
Currently, there are about nine cars per 1,000 people in India. But environmentalists are warning that the Nano will add further clog up India's crowded roads, and pollution levels will soar.
Environmentalists are warning that the Nano will add further clog up India's crowded roads, and pollution levels will soar. Tata says the Nano will be the least polluting car in India. Tata says the Nano will be the least polluting car in India.