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This is an archive article published on January 16, 2010

Even at double the price,Nano to still be cheapest car in US

With Tata group chairman Ratan Tata saying early this month that the Nano will be introduced into the US market in the next three years....

With Tata group chairman Ratan Tata saying early this month that the Nano will be introduced into the US market in the next three years,the buzz around its possible pricing there is getting stronger. According to reports that came in Friday,the car,which costs $2,500 or Rs 1 lakh in the Indian market,is likely to be priced over $5,000 in the US,but will still be the cheapest car in that market.

Meanwhile,a top Tata Motors official said that with the worldwide launches being planned,Nano would potentially be a global volume leader in its segment by 2020.

The US has been,till recently,a market that preferred big,fuel guzzlers. However,with rising concerns over carbon emissions globally,the market has started opening up to smaller cars. The cheapest vehicle in North America costs about $9,000-10,000,“so one could speculate that half of that — over $5,000 — is a possible price point” for the Nano in the US and is still way cheaper than the lowest priced car,a Tata Technologies official said at the Detroit Science Centre,where the car is on display for the US audience. The official,who did not wish to be named since the decision on price would rest with Tata Motors,said the over $5,000 price range could also take into account all the necessary safety and emission requirements needed to ensure that the Nano is fit for the US roads.

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At the recent Auto Expo in New Delhi,Tata said,“We recognise that there is a market for low-cost cars in developed countries and are readying a US version of the Nano. However,for the US,we need to have a bigger engine on Nano and the car has to undergo more crash tests before it goes to US. The company is working on these and I think it is as far as three years before its debut in the US.”

While the technical specifications for the US version is not yet available,in India,the Nano is powered by a two-cylinder 623cc,all-aluminium multi-point fuel injection (MPFI) petrol engine. For a matter of reference,Nano Europa,which is seen to be targeted at the European market,will be powered by a three-cylinder all-aluminium MPFI engine matched with a 5-speed automatic transmission,and electric power steering.

with agencies

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