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Indian carmaker Tata Motors has just unveiled the cheapest new car in the world.

Worth only $2500 (100,000 rupees) this little gem has been named the „Nano‟ for its small size and was quickly dubbed the “people’s car”. It was developed so that middle-class Indian families, who currently do not own a car, will be able to afford it – and this has meant a design that follows the “keep it simple” philosophy to the maximum.

The question is whether the little four-door hatch will take not just India but the whole world by storm, as its makers hope. (They hope it will “boost the Indian economy and create entrepreneurial opportunities across India”.)

Tata Motors calls it a “comfortable, safe, all-weather car, high on fuel efficiency and low on emissions”. What they do not mention is that it includes lots of plastic – dashboard and seat covers for starters. There is little luggage space – although it does seat five people – and creature comforts are few. Air-conditioning is apparently nonexistent in the basic model, which might cause problems, if not in India, where they like to drive with the windows down, then in other parts of the world, where air-conditioning in summer is as important as roses on Valentine‟s Day.

Plus, it‟s slow. There is a rear-mounted, two-cylinder 624 cc engine (you have to admit, that’s nano) with which, we are told, you can, after some time, reach a little over 60 miles per hour. Again, this may not matter too much in India, whose crowded streets and start-stop driving conditions make reaching 60 miles an hour a generally unlikely proposition, but in countries where the freeway rules, this speed probably will not cut it.

Other „luxuries‟, sacrificed to cut costs, include windscreen wipers (there is only one) and power steering – both considered necessities by your average modern driver, who would rather chew tinfoil than manhandle the steering wheel while parking a vehicle. (The steering wheel is really tiny too.) Instead of the standard two wing mirrors, only the driver gets one (though surely being able to see both sides have to be a useful feature in your average car). The trunk cannot be accessed from outside the vehicle – you get into it from inside the car across the rear seats, which fold down. And some exterior bits are glued together, rather than being welded.

Some pluses. There is a man-sized horn (those Indian cities again) and we are told the little car offers a “smooth ride”. Tata Motors chairman Ratan Tata tells people they should not compare the Nano with other cars – it has been purpose built and is unique. Although reports are that Tata itself is feeling the effects of the economic downturn, Ratan Tata is upbeat, finding positives where others might find negatives. As he says: “What has happened in the changing economic situation globally reinforces, if nothing else, the fact that a low-cost car has a place.”

News from „The Hindu‟ (25 March 2009) says General Motors India is planning to launch a new „Mini‟ car by the end of the year. Could they all be on to something?

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