A Nano won’t come cheap and easy for the masses waiting for their first car. In an effort to limit the demand for the much-hyped people’s car, Tata Motors would insist on 100% (Rs 1 lakh) down payment for the Nano on booking. This, according to dealers, is an attempt to restrict the bookings since the company is severely constrained on the supply side of Nano. Typically, a customer pays 20%-30% of the on-road price of a car as down payment at the time of booking.

The Nano will be sold through a lottery system and the booking forms would be available over the week with all its dealers, select State Bank of India (SBI) branches and all Tata group retail ventures, including Croma, Westside, Trent and Star Bazaar. The form is expected to cost around Rs 200-300.

The booking will be open for 14 days, after that the draw of lots will be conducted. The first car would be delivered to the lucky customer in two-and-a-half months, said a dealer.

Ajit Joshi, chief executive officer & managing director, Croma, told FE, “Booking forms for the Nano car would be made available from Monday across all Croma stores in India. But we have certain restrictions on revealing information about the prices at which the booking forms would be made available. Croma stores have received many enquiries for forms before the formal launch of the car.”

Banks are happy with the higher down payment for the Nano, as that allays their fears about potential credit risks that a high demand and long waiting period for the car poses. “Essentially, banks will be interested in financing up to 70% of the car’s basic cost’’, said another dealer.

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