Tags: Mumbai , Nano , Ratan Tata

Mumbai: Tata Nano, the small-car with a huge following, made its commercial debut today but the Rs 1,00,000 price tag that drove it to fame may not stay for long.

"We hope this day we will usher in a new form of transport," Tata Motors Chairman Ratan Tata told reporters at a conference here to mark the launch of the snub-nosed car that was unveiled in January last year.

He said that the endeavour was never to build the cheapest car but to provide an affordable form of transportation to the average Indian family.

Tata, however, hastened to add that "we made a promise (of a Rs 1,00,000 car) and that we've kept the promise." He told editors earlier in the day that the pricing was not a "gimmick". The low pricing is despite the cost of steel and other materials going up, he said.

"From today onwards, the product will be available in the showrooms... There will be three versions - the base version , which is the one we promised to the people of India and two upper tier versions...", Tata said.

According to market research firm Crisil, Nano's price reduces the cost of ownership of an entry-level car by 30 per cent and to below three times the cost of owning a motorcycle.

"This will make the car affordable to an additional 14 million families, including a section of 58 million two- wheeler owners," Crisil said.


Tata Nano, touted as the cheapest car in the world, today made its commercial debut but the people's car would cost customers more than the Rs 1,00,000 that Ratan Tata promised.

The Nano will have a price tag ranging between Rs 1.12 lakh and Rs 1.70 lakh for its three variants at showrooms at Pantnagar, where it is produced, though the ex-factory price would be Rs one lakh.

The Rs one lakh does not include costs towards excise duty, education cess, transportation costs and local taxes, besides registration fee, lifetime road tax, insurance fee and parking fee wherever applicable.

In Mumbai, the the Bharat Stage III compliant Nano will cost between Rs 1.34 lakh and Rs 1.85 lakh (ex-showroom) and in the National Capital, it will have a price range of Rs 1.23 lakh to Rs 1.72 lakh (ex-showroom) for the three variants.

"We hope this day we will usher in a new form of transport," Tata Motors Chairman Ratan Tata told reporters here at the launch of the snub-nosed car, to book which customers need to pay up to Rs 1,40,000.

Tata said the endeavour was never to build the cheapest car but to provide an affordable form of transportation to the average Indian family.

In New Delhi the first basic model would cost Rs, 123,360 while second model will come at Rs. 151,360. The third model will cost Rs. 172,360

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