Tata’s Nano, the $2,500 car, is a hit in India, with the company booking 203,000 pre-orders, Bloomberg reports.
To put that in perspective, GM sold 172,000 vehicles in the U.S in April. That’s GM’s entire run of cars, not just one model. GM will make more money from its sales, though. The pre-orders equate to $501 million* in sales for Tata, which is struggling with debt problems from its acquisition of Jaguar Land Rover.
Tata doesn’t have 200,000 cars ready to go, so it will chose via a lottery who gets the first 100,00 which start rolling out in July. The complete backlog isn’t expected to be finished until 2010.
While the car isn’t thought to be wildly profitable, an analyst points out, once you grab a large share of volume that problem is less significant. The 203,000 orders represent 17% of the total Indian car market.
*We know that $2,500X203,000=$507.5 million, but this is a currency exchange issue.
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