The cheapest vehicle in North America costs about $9,000-10,000 "so one could speculate that half of that -- over $5,000 -- is a possible price
point" for the Nano in the US and is still way cheaper than the lowest priced car, a Tata Technologies official told PTI at the Detroit Science Centre, where the car is on display for the US audience for the first time.
The official, who did not wish to be named since the decision on price would rest with Tata Motors [ Get Quote ], said the over $5,000 price range could also take into account all the necessary safety and emission requirements needed to ensure that Nano is fit for the US roads.
Tata Technologies, part of the Tata Group, has brought the 'Champagne Gold Nano LX' from Pune, India to Detroit for an event titled 'Better Innovation', which was attended by media and auto company officials.
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At the event Tata Technologies CEO and managing director Patrick McGoldrick said by bringing the Nano to the US, he hopes to stimulate some out of the box thinking, "create some sort of buzz and excitement that one can do something different".
Later he read out a letter to the company customers in which Tata Group chairman Ratan Tata had said that the Nano which was being displayed
in the US for the first time "represents the execution of a simple concept of an affordable, all-weather family transport".
Those attending the event wanted to know as to when would the $2,500 car be available in the US market.
Earlier this month at the New Delhi Auto Expo, Tata Group chairman Ratan Tata had said the firm will consider launching Nano in the US in the next three years as there is a market for the car not only in developing countries but also in developed countries.
Emphasising that his company "was not in a position to comment on Tata Motors' product strategy" and price specifics, Tata Technologies president and COO Warren Harris said the cost of the Nano in the US "would obviously be more than the $2,500 that is the price in India."
"Obviously the structural changes that would need to be made, the changes required as far as emissions are concerned and some of the features that would be appropriate to add to the vehicle for the North American market would drive up the price point," he said.
Harris said Nano's price in the US should be "fundamentally lower than any other vehicle in the country.
The previously most affordable car in India retailed at $5,000 and the Nano retails at half that price. "I suspect Ratan Tata is going to make a similar impact here," he added.
If the Nano is to be retailed in the US, it has to have changes that comply with emission standards, besides making other adjustments in design and more features, Harris said.
On where the US Nano could be manufactured, Harris said: "All of that would have to be researched and be part of the decision making in and around the product entry in North America since Tata Motors today does not have a footprint in North America."
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He added that there is "no question that there is demand for a car like the Nano in the US."
Tata Motors already has Nano Europa, a slightly jazzed-up version of the plain vanilla Nano. Nano Europa could make its debut into the European market in 2011 at between $5,000 and $8,000.
A Chrysler official, who did not wished to be named, said if the Nano is sold in the US, it would pose a challenge to his company not so much
because of the price but due to Nano's "innovativeness, which is most interesting"
However, he immediately added: "Since Chrysler today is not in the low-cost car segment, the car itself is not any competition for us."
Tata Motors on Friday reported an 84 per cent jump in its global sales at 74,707 units for December 2008, compared to the corresponding month in 2008.
The company also posted 137 per cent surge in the sale of its commercial vehicles at 37,326 units in December 2009, it said in a statement.
During the month under review, it sold 16,247 units of passenger vehicles, up by 53 per cent, against the same month previous year, it added.
Sale of its iconic brands Jaguar and Land Rover jumped up by 33 per cent in the last month of 2009. During the month, it sold 4,794 units of Jaguar up by five per cent, while Land Rover sales stood at 16,340 units an increase of 45 per cent, compared to December 2008.
Tata Motors Group's global sales comprises of Tata, Tata Daewoo and Hispano Carrocera range of commercial vehicles, and British brands
such as Jaguar and Land Rover. DSH Tata passenger vehicle sales, including those distributed, stood at 16,247 units for the month, a growth of 53 per cent.
Cumulative sales for the fiscal were up 19 per cent at 1,76,652 units. Jaguar Land Rover global sales in December 2009 were 21,134 vehicles,
higher by 33 per cent. Jaguar sales for the month were 4,794, up 5 per cent, while Land Rover sales were 16,340, higher by 45 per cent.
Cumulative sales of Jaguar Land Rover for the fiscal stood at 1,36,978 units, down 26 per cent while cumulative sales of Jaguar were 36,510
units, lower by 33 per cent. Cumulative sales of Land Rover stood at 1,00,468, lower by 23 per cent.
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