Tata Motors, the country's largest automobile manufacturer on Thursday launched the eagerly awaited Rs one lakh car and christened it Tata Nano. The Rs one lakh car is touted as the world's cheapest mass-produced car from the stables of Tata Motors, the automotive arm of the over Rs three-trillion market value group. Rival car makers have, however, not been convinced about the safety and emission standards of the car, coming as it is at that price level.
The launch marks the realisation of a dream for Tata Sons Chairman Ratan Tata, who is looking forward to silencing critics of the project. The car is expected to fill the big gap between the cost of the average two-wheeler and entry-level cars such as the Maruti 800, which retails for about $5,000.
Dubbed till now as the 'people's car', Tata's faced numerous problems like a rising input cost, environmental concerns and stiff political opposition for setting up its manufacturing plant at Singur in West Bengal.
Experts, man on street give Nano 10 on 10
New Delhi: Nobody wanted to buy Ratan Tata's concept of a Rs 1-lakh-worth People's Car when he first talked of it. Some five years later, when Tata Motors finally unveiled the 'Nano', Tata's friends and foes are lapping up this tiny four-wheeler like their own.
The critics initially derided the concept mainly on the basis of the price target, more so as oil and steel prices rocketed. But Ratan Tata still kept his promise and delivered the Nano almost at his target price, forcing global car makers to take note. In fact, many top atomobile giants are now scurrying for their own versions to meet growing environmental and cost concerns.
The 'People's Car', which got critics and well-wishers all awestruck at Pragati Maidan on Thursday morning, is now not only being talked about as the 'future car'. Expert say it will also determine India's place in the global automotive arena and possibly give a leap to India's dream of becoming a global hub of small cars. The car, feel experts, is more than value for money with its 20 kmpl average and the smart price. Here are the first reactions of some of the most prominent industry experts as they told to CNN-IBN and various news agencies.
'Nano's launch is a proud moment for the country'
India must protect the interests of its auto industry from the impact of free trade pacts with other countries that allow imports at zero or reduced tariff, Heavy Industry Minister Sontosh Mohan Dev said on Thursday. "We have to see that a lot of free trade agreements that are being signed by India should not stand in the growth path of our automobile industry, as it is only 15-year-old," Dev told the inaugural event of Auto Expo 2008 here.
"If we do not do it, we will end up becoming net importers," the minister told the eight-day event, that was opened by his cabinet colleague and Commerce and Industry Minister Kamal Nath, which oversees the free trade pacts. "We also have to be globally competitive. If we were to be globally competitive, we need to achieve economies of scale. I want the industry to bear in mind this aspect so that when investment is made global competitiveness is first priority," he said.
"We are certainly much more economic in terms of infrastructure costs compared to Europe and North America, but we need to be more competitive with regard to the emerging economies by achieving higher productivity." The government, he said, has the stated objective of making the Indian auto sector a $145-billion industry by 2016 that will also see the creation of 25 million additional jobs. Kamal Nath assured those present at the occasion that the United Progressive Alliance government was, indeed, cautious in protecting the interests of its industry whenever required.
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