Full-scale production of Tata Nano to start in April


The Indian car manufacturer Tata Motors will start full-scale production of the world’s cheapest cars, Tata Nano, in April, making expected deliveries to Europe and the United States a reality, the company’s press service has said.

The Nano cars cost 100,000 rupees ($2,210) each and are produced at the Pantnagar plant in the north Indian state of Uttarakhand. The plant’s capacity is 50,000 vehicles a year, which means new cars are only available to those who have already made orders.

The three meter-long Tata Nano, which drives at a maximum of 70 km/h (43 mph), was first showcased in January 2008. The company began accepting orders for its cars in April 2009 and said it would launch full-scale production if there was sufficient interest.

As demand is high, Tata Motors announced that production will be extended.

“We have set up a new plant in Sanand (Gujarat state), which is expected to begin commercial car production in April. The initial capacity of 250,000 per year will be reached in phases,” the company said in a statement.

The construction of the plant in Gujarat began in late 2008, after a row with farmers over the purchase of a site in Western Bengal delayed the production launch.

According to the statement, since July 2009, when deliveries began, the company has produced around 25,000 Tata Nanos and 200,000 people have made orders to purchase the car. The company said only 100,000 people would receive their cars by the end of the year.

The basic Nano model lacks luxuries such as airbags, air conditioning and a radio. However, more upmarket versions will eventually be available, including the slightly bigger Nano Europa, due in 2011 and expected to cost around $4,000.

The company is also planning to sell its Nano cars in the U.S.

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