After several months of uncertainty, the Tata Motors Nano?the world?s cheapest car, carrying a sticker price of Rs 1 lakh?is set to hit Indian roads next month. On Thursday, Tata Motors said the company would launch the much-awaited small car on March 23. Bookings will start from the second week of April.
A 35% fall in the domestic price of steel, a major raw material, over the last few months is expected to help Tata group chairman Ratan Tata deliver his pet project, the Nano, at the promised price. The launch announcement helped haul up the Tata Motors share price by 7.26% to Rs 150 on the BSE on Thursday.
?Tata Motors is making arrangements for the widest possible network to book the car, so that prospective customers can conveniently avail of booking facilities across the length and breadth of India,? the company said in a statement. SBI will be a booking agent for the vehicle, chief general manager (Bengal circle) JK Sinha had earlier revealed.
According to a source close to the development, the Nano will be available at select dealerships across some 20 cities to start with. It will be available in three petrol variants: one basic and two deluxe. The car is expected to cost Rs 1.20 on the road for the base model in Mumbai. A diesel variant is expected later.
The Nano was originally slated for launch in the last quarter of 2008, but was delayed after protests forced Tata Motors to shift its manufacturing base from Singur in West Bengal to Sanand in Gujarat. The Sanand plant will have a capacity to produce 2.5 lakh cars, which can be expanded to double that figure.
The booking process and other details will be announced on the day of launch. However, a sources in the dealership network said, ?Customers will have to pay around 20% of the car?s cost upfront when booking, but allotment will be by lottery.?
Since volumes will initially be a problem, long waiting periods are expected. ?Supply constraints will affect demand for the Nano,? said Frost & Sullivan director VG Ramakrishnan. Up to 50,000 Nanos will be produced by year-end.