01/11/2008, 00.00
INDIA
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The Nano makes Indians dream, leaves Westerners sceptical

The world’s cheapest car is unveiled by Indian giant Tata Motors. Plans for foreign sales are already in the making. Experts and aficionados warn that cost-cutting sacrifices quality and security. Environmentalists fret at the idea of low-cost cars.

New Delhi (AsiaNews/Agencies) – India's Tata Motors unveiled yesterday the world's cheapest car, one that the company promises will revolutionise the auto industry by bringing car ownership within reach of tens of millions of Indians but which has sparked a lively debate among motor experts, environmentalists and car aficionados.

The four-door subcompact Nano has a two-cylinder 0.6 litre gasoline engine with 33 horsepower, giving it a top speed of about 100 km/h (60 mph), according to Tata. It gets 21.2 km per litre (50 miles per gallon). It would be sold for US$ 2,500.

The basic version has no radio, air conditioning, passenger-side mirror, central locking or power steering and only one windshield wiper.

Tata says its “people’s car” will conform to European emission standards and plans to sell it in Western markets. For some observers that will be a difficult task, achievable only by sacrificing safety and quality. To be approved for sale in Europe the company will likely have to make major technical improvements in safety and pollution controls which would raise its price.

And environmentalists cringe at the idea that millions of Nanos might take to the road in India.

Chief United Nations climate scientist Rajendra Pachauri, who shared last year's Nobel Peace Prize, said last month "I am having nightmares" about the low-cost car.

The forecast for India’s fast-paced economic development includes a substantial growth in the number of cars. By 2016 car sales should reach US$ 145 billion, four times the current volume.

Presently, the Nano’s “revolutionary” success lies more in marketing and image than in economic output.

“It will be very difficult for them,” said Darius Lam of Autocar International. “They will have to ramp up production [. . .] and sell lots of these before they make any money from it,” on the condition that consumers actually go for the people’s car.

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