Source: Yahoonews.
Three-year wait for world's cheapest car
It's been called the car that will 'mobilise India', but the £1,400 Tata Nano is already hitting problems before the order book has even opened, with delays of up to three years predicted thanks to unprecedented demand.
Officially launched in India today (March 23rd), the Nano will cost the equivalent of £1,400 when Tata starts delivering its first buyers' cars next month, but the scale of demand means the maker will have to deal with a massive backlog.
It's expected that up to 500,000 orders will be taken in India alone, but at present Tata can only produce 50,000 Nanos per year - until it opens a new factory this spring with the capacity to build 250,000 per year. The backlog means rivals will be able to gain on Tata by bringing their own super-cheap city cars to India; the Renault-Nissan alliance being one such possibility.
So, Tata plans to demand a deposit of more than half the car's asking price - around £950 - to ensure there are no time wasters on the list. In addition, it's rumoured that a lottery system will determine who gets the first cars off the production line. It will limit the number of basic cars produced and increase the quota of 'luxury' versions with equipment such as air conditioning and electric windows.
This new development is likely to further delay the sale of the Nano in the UK and the rest of Europe, despite the company revealing a 'Europa' model at the recent Geneva Motor Show.
Mark Nichol
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