Monday, March 23, 2009

Nano wheels hit Indian roads

Tata Nano, the world's cheapest car with a huge following, made its commercial debut on Monday but the Rs 1,00,000 price tag that drove it to fame may not stay for long.

From today onwards, the product will be available in the showrooms. There will be three versions - the base version , which is the one Tatas promised to the people of India and two upper tier versions. But u have to pay more if you want a Radio, an A.C. or other facilities in your car for the base version.

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.

While the Nano will not affect the other compact cars in the market, it will create a new segment of buyers, mainly those who want to upgrade from two-wheelers to four wheeler.

But it remains to be seen the people's interest in it,when the market is very low and people are losing their jobs due to recession and much of them are forced to sell their cars due to less income, no one can predict about the future of the Nano.

Also the environment related issues are with it, at the same time when Indian roads are full and blocked with the traffic, is it wiser to put 1 million new cars on the Indian roads?

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