Shifting inflected forms, India?s Nano benumbed the senses at the Geneva Motor Show, stealing the thunder at the supercar exotica with consummate ease. The world?s cheapest car from the Tata stable even got top auto makers agreeing that ?small? could, indeed, be ?big?.
The international media, CEOs and curious crowds converged on the Tata stall and was decidedly in awe of the small wonder whose launch turned out to be the best-attended. Observers felt initially that the crowds had gathered at the stall, anticipating an announcement on Tata Motors? impending ownership of the Jaguar and Land Rover brands. But the atmosphere remained electrifying even though no announcement was made. It was clear that the Nano was waving the magical wand.
Priced at $2500 for the Indian markets, the world got its first glimpse of the Nano as it was unveiled on Tuesday at the 78th Geneva Motor Show.
It goes without saying that Tata Motors will need some time to bring the Nano to Europe, but the excitement around the car made it crystal clear that Europe is already clamouring for the Nano, which will debut in India sometime in the second half of 2008.
A proud Ratan Tata and his top executives were seen accepting compliments from various global auto CEOs including that of Aston Martin?s David Richards, Volkswagen chief executive Martin Winterkorn, Fiat chief Luca de Montezemolo, Renault?s CEO Carlos Ghosn, Nissan?s executive vice-president Carlos Tavares, GM?s Rick Wagoner and the bosses of Toyota Motor Corp, Dassault, Lexus and Ferrari.
Tata sensed a ?kill? and quickly announced that, to meet the huge demand, his company was open to the idea of giving licences to foreign manufacturers to make this car. Even for the domestic market, where the demand for the Nano is expected to outpace the planned production capacity of 2.5 to 3.5 lakh cars a year, Tata said licensed manufacturing to ?young entrepreneurs? was being considered.
But the one thing that the Tata group chairman would not like to talk about at this stage is his discussions with Ford Motor Company for buying the Land Rover and Jaguar brands. All that he had to say was, ?The talks are progressing well and there are no roadblocks.? However, the grapevine tells us that the Jaguar and the Land Rover are in the final stages of being sold to Tata Motors and an announcement could be made anytime soon.
As the Nano was mesmering visitors, Ford, Chevrolet, General Motors, Toyota, Fiat and others, in anticipation of stricter European emissions, were displaying their greenest mass-market car models.
Most of them boasted of reduced carbon dioxide emissions following the recent meet at Brussels, where the EU has proposed a fleet average of 130 grams by 2012. Those who will not adhere to these emission levels will have to face stiff fines starting at 20 euros ($30) a gram per kilometer, multiplied by the number of cars sold, rising to 95 euros ($144) by 2015. If auto makers pass this cost on to consumers, it would add hundreds of euros to the price of a car.
The launch of the Nano has already got leading carmakers like Hyundai, Toyota, Renault and Nissan working out plans for a small-car rollout in the near future. And most of the carmakers are preferring emerging markets like India, China and Russia to the developed nations.
Sharing the view, French carmaker Renault?s chief executive Carlos Ghosn said his company, which sells two-thirds of its vehicles in the home market, could be selling at least half of the output in the emerging economies over the next 7-8 years. This clearly marks a shift in carmakers? focus?from selling in American and western European strongholds to doing business in emerging markets.
Falling in line, Renault?s executive vice-president Patrick P?lata said, ?India, one of the fastest-growing car markets and one of the most competitive supply bases in the world, will play a key role in Renault?s growing global presence.? Using the Chennai plant, Renault wants to build a full line-up for India, following the current success of the Logan. ?In addition, we are talking to Baja Auto for the small car project,? he said.
Renault and Nissan are already in talks with India?s Bajaj Auto to launch a small car in India, Hyundai too is studying the possibility of bringing out a car in the same segment. Not to forget the recent agreement signed by Renault-Nissan combine with the Tamil Nadu government for investing Rs 4,500 crore towards creating a new manufacturing facility at Chennai.
FE also spoke to Nissan Motor?s executive vice-president for corporate and product Planning Carlos Tavares. Tavares said his company was not insisting on having a controlling stake in its proposed joint venture with Bajaj Auto for manufacturing the small car in India.
?Our competence lies in our technology and we are not eager to keep controls,? he said when asked to comment on the statements coming out of Baja Auto for a controlling stake in its proposed JV with Renault and Nissan to manufacture small cars.
Asked about a possible launch date for the small car, Tavares said, ?Our discussions are progressing well with Bajaj Auto. An announcement on the launch of our entry car can be expected in two months.? He refused to divulge the details on the price of the small car.
The alliance of Nissan and Renault with Bajaj Auto for the small car is in addition to the $1.1 billion (Rs 4,500 crore) integrated greenfield automotive facility by the Renault-Nissan combine at Oragadam, near Chennai. Following the exit of their local partner Mahindra and Mahindra, the Renault-Nissan 50:50 alliance has maintained its commitment to establish a facility with an installed capacity to produce 4,00 000 vehicles a year. The production date is set for early 2010.
The product line for this greenfield capacity is being worked out in step with the needs of the Indian and the export markets.
Renault has begun selling the Logan sedan in India since May 2007 in league local partner Mahindra & Mahindra.
South Korea?s Hyundai Motor Co, which has a significant presence in India and China, is also mulling developing a car priced at around $3,500. The Hyundai vehicle would mainly target the Indian market and could also be made available to China or other Asian markets.
Small cars in India make up more than two-thirds of the sales of passenger vehicles, which are expected to nearly double to 2 million units by 2010.
The Nano has indeed shown the way.
