Indian Company to Manufacture World's Cheapest Car

Tata Motors unveiled the world’s cheapest car today — a 10-foot long, 5-foot wide pipsqueak it’s dubbed the Nano. Tata plans to initially sell the car in India’s burgeoning automobile market for just more than 100,000 rupees (about $2,500). Higher trim levels will presumably go for a bit more and include “features” such as a radio, sun visors and air conditioning (which might be a smart investment on a 110-degree summer day in India).

Don’t let the low sticker price excite you too much; the only Nano you’ll see in the U.S. will be of the zero-emissions iPod variety. The car called Nano is intended to dominate the market only in the developing world, where incomes are lower and automobile needs more basic. For instance, the Tata has a 33-hp, two-cylinder engine that tops out at 65 mph, and while the car passes safety tests in India, any compact SUV would likely shred it to pieces on American roads. There are no airbags to protect passengers, just seat belts.

The Nano may prove revolutionary for people in Southeast Asia, Latin America and Africa over the next four years, but environmentalists worry about a spike in pollution caused by mass adoption. 

The title for cheapest car stateside belongs to the Chevy Aveo, which can be had for just under $10,300 in a stripped-down Value version.

Tata’s High-Stakes Bet on Low-Cost Car (Wall Street Journal)