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We mentioned in April that Tata Motors will be releasing the world’s cheapest car. Very soon this cute $2,500, 624 cc, 33 HP little buggy will be tearing up the streets of India bringing new car ownership to a burgeoning middle class. The low price is made possible by India’s lax safety (no air bags or ABS here) and emission standards. Let’s not rush to judge, they are probably safer and cleaner than the scooters and motorcycles they are replacing. The Nano’s German made rear mounted Bosch engine is said to power it to a top speed of 75mph, although the wheel bearings were not designed to go over 45mph (another cost reducing decision). For $2,500 you get one windshield wiper, no radio, no passenger side rear-view mirror, no AC and a trunk big enough to hold a brief case, but hey, the whole car costs about the price of the optional DVD player on the Lexus LX 470 sport utility vehicle.
Let the price wars for sub-compact cars begin! What could be the new race “to build really cheap cars”, Renault-Nissan announced at a plant-opening on April 4th that it was “planning on building a car for under $3000, 40% less than the least expensive sub-compact car available today.” In addition t… [More]
 Company Chairman Ratan Tata, introducing the Nano price tag $2,500 — during India's main auto show, drove onto a stage in a white version of the tiny four-door subcompact, his head nearly scraping the roof. With a snub nose and a sloping roof, it can fit five people if they squeeze.
Tata, however, is targeting people moving up from the lower ends of India's transportation spectrum, where two-wheeled scooters selling for as little as $900 are often crammed with entire families.
While the price has created a buzz, critics say the Nano could lead to possibly millions more automobiles hitting already clogged Indian roads, adding to mounting air and noise pollution problems. Others have said Tata will have to sacrifice quality and safety standards to meet the target price.
(news.yahoo)
References: nytimes, news.yahoo
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Ben Preiss
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The Race To Build Really Cheap Cars
