Nano On Sale In July, Used Car Market In India Toast


At a prelaunch event today, the Tata Nano car was more formally introduced to the world.

There will be three models that run from 95,000 rupees ($1,880) for the basic to 172,360 rupees ($3,411) for the luxury (pictured here).

The car will have little impact on the bottom line for Tata Motors. The company is struggling under a massive debt load from its $2 billion acquisition of Land Rover and Jaguar and the Nano, while cool, won’t add much in terms of profitability. If the Nano isn’t a hit it might even take the company down. In this environment, with auto sales slumping and credit tight, the company could suffer from this bet, though it’s not likely.

While the car won’t do much for company, it will be a boon for Indian consumers. Cheap cars for the impoverished has the opportunity to transform the world.

It might also wipe out a large share of the used car market .

The Hindu:Experts feel the used car market and the two-wheeler business will be subject to attrition, with the Nano bridging the gap for first-time buyers.

“It’s likely to affect the used car business by 10-12 per cent with immediate effect. It might also push down the price by an equal percentage for second hand vehicles,” auto analyst Murad Ali Baid told IANS.

Abdul Majeed, principal automobile consultant at PricewaterhouseCoopers said the impact of Nano on the used car market will be “significant”.

“The car has created a new segment, which will significantly affect the second hand car market, while the two-wheeler market will also suffer,” he said.

The company will start taking orders April 9 to April 25, and sales will begin in July. It supposed to be available in the U.S. in 2.5 years.

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