The world's cheapest new car January 10, 2008 05:30 PM Author: Chips

FIRST LOOKS
The world's cheapest new car
January 10, 2008 05:30 PM Author: Chips

When it was first announced by TATA Motors a few years ago, sceptical experts said it couldn’t be done. It was just not possible to build a decent car for a few thousand US dollars. The price was based on the target Indian price of 1 lakh (100,000 rupees) which would make it the cheapest car not only in India but in the world. The details were a very well-kept secret and that made it harder for people to believe that TATA could do it, let alone meet the launch year of 2008.

But when you have the owner of the company personally making the commitment and being the one who wants the car to become a reality – at the price promised – it is not hard to have the full resources of the company made available and the dedication of its workers to ‘make it happen’. And happen it has, although actual deliveries won’t start till the middle of this year.

The idea of a true ‘People’s Car’ – which is what the Nano, as it is called, can be regarded as - coming from a company like TATA is not surprising when you know the company’s history and philosophy. The Indian company, established in 1945, is the epitome of Corporate Social Responsibility (CSR) and is even a signatory to the United Nations Global Compact. From the time of its founding, it has been engaged in community and social initiatives on labour and environment standards in India, using its increasing wealth to improve the livelihood of the people of India.

Until 10 years ago, TATA was not a manufacturer of passenger cars; it had started out as a locomotive manufacturer and then ventured into making heavy vehicles like lorries and buses. During the 1990s, it gave more attention to passenger-carrying vehicles and began to develop SUVs and MPVs and then came out with its first passenger car called the Indica.

The Nano was, however, a huge challenge as it was more than just about making another car model. It required ‘out-of-the-box’ thinking and a conscious rejection of conventional approaches and the types of materials used. Furthermore, in this era of environmental concerns and also safety, it was a much tougher challenge than the days of Henry Ford and his Model T, Ferdinand Porsche and the VW Beetle and even Alec Issigonis and the Mini. Back then, those cars which were also low-priced for the masses but and concerns about whether their engines would cause more pollution were virtually non-existent. The car just had to be built sturdily, be easy to maintain and have low operating costs.

Nevertheless, it was safety which persuaded Ratan Tata to press for the development of the Nano four years ago. He was greatly concerned by the dangers for the motorcyclists, especially those having to transport many family members. Typically many would load more than two persons on a motorcycle so what he felt was needed in India was a vehicle which could take all the family and that had to be a car. It had to be priced so cheap that those using motorcycles could realistically afford to buy it.

The result is a car which is not entirely unconventional – it still looks like a car – but a lot of clever thinking has gone into its design to meet the cost target which was really the priority. In fact, it is believed that in the four years of development, costs rose as materials became more expensive but for Mr Tata, ‘a promise is a promise’ and the car is launched at the 1 lakh price… but that is actually an ex-factory price and by the time it leaves the showroom, the customer would pay a little bit more in the form of taxes and some other minor charges. Mr Tata did, however, say that the price is not subsidized by TATA so it is not losing money making it.

The one-box styling of the car was done by an Italian studio with much personal involvement by Mr Tata, an architect by training. It is said that he was the one who decided that one wiper would be enough – contributing to cost-saving. The bulbous shape is typical for small cars as it provides maximum interior space but a compact ‘footprint’. And as there are fairly tall Indians, headroom was also important, hence the high ceiling and curved roof.

The 4-door Nano measures 3.1 metres in length with a width of 1.5 metres and a height of 1.6 metres. That’s not as long as a Perodua Kancil which is 3.4 metres but a wee bit wider as the Kancil is 1.4 metres. The weight has not been revealed though it’s a sure bet that it has been kept as low as possible using lightweight materials.


Being small does pose problems with regards to safety, especially in a collision. However, in Mr Tata’s view, the trade-off is acceptable because there would still be better protection in a car than on a motorcycle. It meets ‘current safety standards’ (presumably those for India) but does not have airbags, which would have been a major cost. From pictures of the cabin, it appears that seabelts are provided for front occupants but not the rear. Of course, such things can be fitted eventually but it will make the car cost more.

In terms of environment protection, the Nano is said to have an engine that meets Euro-4 emission standards – which is even better than what is presently required in Malaysia. According to Mr Tata, it was much easier to meet the emission standards than safety standards. That’s not surprising, of course, as with electronic engine management systems and EFI, it’s a matter of tuning correctly to the desired level. Having a catalytic converter also cleans up the exhaust gases significantly.

The first engine for the Nano is a petrol engine (a diesel is to come later) with two cylinders displacing 624 cc. To save weight, it is all-aluminium in construction and it has a single balancer shaft, the first for a 2-cylinder engine. The design strategy was to maximise performance per unit of energy consumed and deliver high fuel efficiency which is claimed to be 17.7 kms/litre (50 mpg). The top speed is supposed to be about 70 km/h, probably enough for road conditions in India for the immediate future.

The power output is a modest 33 ps which goes via a 4-speed gearbox (there seem to be conflicting information about the transmission which some say is a CVT) to the rear wheels. So the storage space is up front and it’s not very much either. Other technical details have not been released yet.

TATA sees India as the primary market but has not ruled out exports. Though many industry observers feel that the basic specifications – no conveniences like power windows or power steering – will not be acceptable to consumers in other markets. Even in India, TATA already said it will have ‘deluxe’ versions that will have extras and cost more. TATA is looking at those countries where economic levels are still low and consumer expectations are also low. In the poorer countries, a car like the Nano would be something very appealing indeed and if volumes go up substantially, TATA could even bring the cost down as a social contribution.

The Nano, having become a reality at the promised price, is expected to be influential in changing the way cars are designed and costed. For those selling high-volume models, it will certainly make them re-think their strategies but some may simply not be willing to compromise on areas such as safety and will therefore not want to push prices right down. Ultimately, of course, consumers will decide whether they want to pay the extra for safety or not.
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Just thinking, if Malaysia can come out with something similar, may not be that cheap as what TATA did, maybe slightly lower than RM25K for a small saloon car, perhaps? Just thinking. So folks, give your comment on this matter.
Enti ulih, rindu kitai bekrita, sida aya diau rumah panjai pan tebeli ke nya, nyau baka rega muto sikal. Tang kada ke ulih Malaysia ngulih ke ia rega nya. deh? Minta kita meri komen ba column baruh tu.