Tata Nano says tata to wait list

Finally consumers in India can get their hands on a Tata Nano microcar.

After production delays, due mainly to factory land and location controversies and a lot of hoopla the Nano is trickling into the eager hands of consumers via lottery, the first of over 200,000 orders. The car is marketed to replace bicycles, rickshaws, scooters and motorcycles. For the vast majority of consumers in India it is their first car.

The car which has an ugly duckling cute factor is spartan compared to other cars on the road such as Toyota Yaris and smart car. It does have three trim levels which like any other line of car gives more features as you move up. The powertrain in all trims is a small air cooled 2 banger with 4 speed stick shift which tops out around 65 mph and returns 50 mpg. Stopping is via four wheel drum brakes. Of course this car is $2,055 US dollars (base). For perspective this car is $1,944 cheaper than what a $3,999 Yugo GV sold for back in 1986 in the United States, even in 1986 money that was bargain basement.

The trim lines are Nano base, CX and LX. Moving through the trim lines adds things such as more color choices, delay wiper, rear headrests, A/C with heater (not on base), central door locks, locking passenger door (LX), wheel covers, reclining seats and nicer console with cigar lighter. Click here for a side by side comparison of trim levels.

Safety? Well lets just say ABS and air bags are not included/available at any price level. Interestingly enough, Nano is smart car like with larger rear/smaller front tires, P155 and P135 respectively for traction.

Many wonder will this little bugger make it to the United States? Probably if it does well in Europe first. There will have to be modifications of course. Airbags will have to be made standard and structural enhancements performed just to pass crash tests. A bigger engine with more power will be required so the car can venture onto Interstates. More standard features will be needed to add appeal like power steering. And a dealer network will have to be established. It would be interesting if they can keep the price around say, the $4,000 to $5,000 dollar range.

Questions persist. Will this car be bad for the environment even with emission controls and so many people slated to buy? Will Tata make money since car companies never see large profits on entry level cars? Will this be the first phase of Tata coming to America? Will this hurt them in terms of prestige since they own high end nameplates such as Jaguar and Land Rover?

http://www.examiner.com/x-6812-Newark-Alternative-Transportation-Examiner~y2009m7d17-Tata-Nano-says-tata-to-wait-list

Tata Motors net profit jumps 57.5 percent

MUMBAI - Auto major Tata Motors Monday reported 57.5 percent surge in its net profit at Rs.513.7 crore (Rs.107 million) for the quarter ended June 30, as compared to Rs.326.11 crore in the like period last fiscal.

Total income, however, decreased 7 percent to Rs.6,723.9 crore from Rs.7,244 crore, the company said in a regulatory statement.

“Improvement in liquidity, increased reach across the country and introduction of new products and variants improved the company’s sales, except in the case of the heavy truck segment, it added.

The company reported a marginal decrease of 1.4 percent in domestic sales at 122,120 vehicles.

“The exports at 5,220 vehicles continued to be severely impacted (negative 43 percent) in the wake of continuing tumultous global environment resulting in total sales volume at 127,340 vehicles, a decline of 4.3 percent, the company added.

The auto giant, which owns luxury car brands Jaguar and Land Rover and recently launched the world’s most inexpensive car Nano, said its passenger vehicle sales declined 10 percent in the domestic market to 45,846 units.

http://blog.taragana.com/n/tata-motors-net-profit-jumps-575-percent-121730/

The Indian Car Promise

India is no China when it comes to cars, but then again, it's almost time for the $2,000 Nano.

What's the potential car market in India? Many of us were tied to the past. We thought of India, and we saw sacred cows, elephants, jammed streets, slums, beggars and millions of people dressed like Gunga Din. Then we saw Slumdog Millionaire, and we saw skyscrapers and luxury homes and cars. So what's the story? Is India another China when it comes to cars?

In fact, the car market in India is still largely a promise. Car sales have grown, yes, but they are still a fraction of China's vigorous market. This year's sales may push past 1.6 million cars and light commercial trucks. That's double the 800,000 of 2002--but it still isn't that many. And Western companies are extremely small in India, unlike in China, which might be the world's No. 1 vehicle manufacturer this year.

To make this clear, look at four-month sales through April: 649,000 cars and light trucks in India compared with 3.7 million in China. And China's sales are still climbing, while India is flat. Mind you, flat isn't bad this year, unless compared with China.

Who sells there? A Suzuki ( SZKMF.PK - news - people ) partnership called Marudi Suzuki is the dominant player, with 43% of the market. Next is the Korean Hyundai Group with 14%. But our big players are minor actors in India. Honda ( HMC - news - people ) accounted for only 22,000 car sales in the first quarter, General Motors' ( GMGMQ.PK - news - people ) Chevrolet (also from Korea) 19,000, Toyota ( TM - news - people ) 13,000 and Ford Motor ( F - news - people ) 10,000.

Check the first four months' car production. These production figures come from J.D. Power, which does a thorough job of collecting numbers from India and China.
http://www.forbes.com/2009/06/30/flint-india-cars-business-autos-backseat-driver.html