World's cheapest car launched

[TimC]

You remember hearing the environmentalists freaking out over this possibility awhile ago? How dare India give their billion people the opportunity of affordable cheap transportation to get around and pollute their world?

 

Anyways, this deathtrap launched today. My lawn tractor has more horsepower...seriously.

 

My guess is this little thing kills a few thousand in the first month and they realize that building crapboxes (like the Prius and SmartCars here) are a bad idea.

 

 

 

 

 

 

 

http://news.bbc.co.uk/2/hi/business/7957671.stm

 

The Tata Nano, the world's cheapest car, is being launched in India.

 

Costing just 100,000 rupees ($1,979; £1,366), the Nano is due to go on sale across India over the next 10 days.

 

Tata hopes the 10 feet (3 metre) long, five-seater car will be cheap enough to encourage millions of Indians to trade up from their motorcycles.

 

Tata owner Ratan Tata has described the launch as a "milestone". Analysts say it will take the firm up to six years to make a profit from the Nano.

 

Factory row

 

The four-door Nano has a 33bhp, 624cc engine at the rear.

 

The basic model has no airbags, air conditioning, radio, or power steering. However, more luxurious versions will be available.

 

A slightly bigger European version, the Nano Europa is due to follow in 2011, and is expected to cost nearer to £4,000.

 

Analysts said that if the car proves an immediate hit in its home market, Tata may struggle to meet demand.

 

This is because the main Nano factory in the western state of Gujarat, which will be able to build 250,000 cars a year, is not due to open until next year.

 

In the meantime, Tata will only be able to build about 50,000 Nanos at its existing plants.

 

The delay happened when Tata had to abandon plans to build the Nano in a new plant in the eastern state of West Bengal due to a row over land acquired from farmers.

 

This caused the launch of the Nano to be put back by six months.

 

'Milestone'

 

Tata's managing director Ravi Kant said that bookings for the car will start on 9 April, and that a ballot will then select the first 100,000 people to get their Nano.

 

Deliveries will then begin from July.

 

"I think we are at the gates of offering a new form of transport to the people of India and later, I hope, other markets elsewhere in the world," Mr Rata told reporters gathered for the launch.

 

Even if Tata can sell 250,000 models a year, it will add only 3% to the firm's revenues, says Vaishali Jajoo, auto analyst at Mumbai's Angel Broking.

 

"That doesn't make a significant difference to the top line," he said.

 

"And for the bottom line, it will take five to six years to break even."

 

Yet with seven million motorcycles sold last year in India, Tata is eyeing a huge marketplace for the Nano.

 

Like almost all global carmakers, Tata has seen sales fall as the global economic downturn has continued.

 

The firm made a 2.63bn rupees loss for three months between October and December.

 

In addition, Tata is struggling to refinance the remaining £2bn of its £3bn loan it took out to buy the Jaguar and Land Rover brands from Ford in June of last year.

[cre8tiff]

Tata hopes the 10 feet (3 metre) long, five-seater car will be cheap enough to encourage millions of Indians to trade up from their motorcycles.

 

Well, as far as safety is concerned, trading up to one of these from a motorcycle can't be THAT big of a safety hit. Especially if they can only go 43 MPH. (In contrast to motorbikes which can go a LOT faster)

Edited March 23, 2009 by cre8tiff

[Big John]

World's cheapest car. Sounds liks the SNL skit of the Adobe - the car that was made out of clay and cost just under $200.

[AtomicCEO]

I'd like to see if this pollutes more or less than those crappy 2-stroke bikes they ride around on. I'd bet this is an emissions improvement.

[westvirginia]

I'd like to see if this pollutes more or less than those crappy 2-stroke bikes they ride around on. I'd bet this is an emissions improvement.

 

That was my thought. If it's over 600 cc's and only makes 33 hp at the crank, it's definitely a four-stroke. Heck, the Honda 600cc bikes make nearly three times that.

[Riffraff]

Whenever you think traffic is bad here in the states, just be thankful you don't drive in India.

and

.

[TimC]

Who was that guy that bought the Fit? Ooops...

 

MARCH 23, 2009 Industry's Big Hope for Small Cars Fades

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By MATTHEW DOLAN

Last summer, when gas cost $4 a gallon, buyers snapped up small cars so fast that dealers couldn't keep them in stock. Now, with gas prices half that level, almost 500,000 fuel-thrifty models are piled up unsold around the country.

 

The turnabout comes at a bad time for the struggling U.S. car industry, which has revamped factories and shifted product plans to produce more small cars in coming years. The moves are prompted by coming stricter federal fuel-economy standards and the Obama administration's car-bailout plan, which encourages auto makers to boost their vehicles' mileage.

 

Practically every small car in the market is stacked up at dealerships. At the end of February, Honda Motor Co. had 22,191 Fits on dealer lots -- enough to last 125 days at the current sales rate, according to Autodata Corp. In July, it had a nine-day supply, while the industry generally considers a 55- to 60-day supply healthy.

 

For other models the supply situation is even worse. Toyota Motor Corp. has enough Yaris subcompacts to last 175 days. Chrysler LLC has a 205-day supply of the Dodge Caliber. And Chevrolet dealers have 427 days' worth of Aveo subcompacts. At the current sales rate, General Motors Corp. could stop making the Aveo and it wouldn't run out until May 24, 2010.

 

"I don't think Americans really like small cars," said Beau Boeckmann, whose family's Galpin Ford in southern California is the country's largest Ford dealer. "They drive them when they think they have to, when gas prices are high. But we're big people and we like big cars."

 

The logjam of small cars is caused in part by the recession, which has sapped sales of all types of vehicles. But it also underscores how badly gasoline prices have whipsawed the industry. A year ago, car companies rushed to react when Americans practically stopped buying large vehicles and flocked to hybrids and small cars.

 

 

Jim Stem for The Wall Street Journal

AutoWay General Manager Brian Speas stands next to a Honda Fit that has been on the Clearwater, Fla., dealership's lot for more than 140 days. The recession in part has caused a logjam of small cars at dealers.

Ford decided to convert some truck plants to make small cars. GM added an extra shift at its Lordstown, Ohio, plant that makes the Chevy Cobalt, a diminutive sedan. Import brands also pumped up their production of small models.

 

AutoWay Honda in Clearwater, Fla., last summer could hardly keep fuel-efficient models like the Civic sedan and Fit on the lot. "When one would come in, it'd be out the door the same day practically," said Brian Speas, the dealership's general manager.

 

Now, Mr. Speas is struggling to get customers to give them a look. He has a whole row of Civic hybrids that draw little interest, and a half-dozen Fits that have been sitting unsold for more than three months.

 

Yet despite the glut of small cars, many auto makers remain convinced the spike in gas prices sparked a long-term shift toward fuel-efficient models. Ford's top sales analyst, George Pipas, said that over the five months ended in February, industrywide sales of small cars totaled 718,000. That was down 28% over the same period in 2008, but small cars grew to 18.4% of total market, up 2.1 points from the year-earlier period.

 

"Our view is we are seeing a number of social, demographic and economic factors that will drive small and midsize cars in the future," Mr. Pipas said.

 

For now, though, dealers have to find a way to move the fuel-sippers that are gathering dust. Mr. Speas, the Honda dealer in Florida, just launched a radio campaign offering Civic hybrid leases at the same price as the model's traditional gas engine counterpart. Last summer, the hybrid fetched a $130-a-month premium over the standard Civic.

 

Yet the allure of such incentives seems to fade when gas prices don't seem so outrageous.

 

Wes Bean, a 37-year-old compliance manager for a mortgage company in Charlotte, N.C., started looking last summer at small cars, including the Civic. But soon, the father of two young children and his wife turned their attention to used cars. A few weeks ago, the Beans bought a used Nissan Quest minivan online through eBay Motors.

 

"Gasoline was a huge factor back then," he said. "Hopefully, you just knock on wood now that it won't go back fast to three or four bucks a gallon."

 

Write to Matthew Dolan at matthew.dolan@wsj.com

 

Printed in The Wall Street Journal, page B1

[Savage Beatings]

I would just want to know how fast it can go, and what is the fuel economy? If I can get something for that price, which could get me 40 to 50 mpg and I could drive it on the freeway, then hell put me down for 3 or 4 of them.

[whomper]

The Nano, the world's cheapest car, is being launched in India.

 

 

An exclusive picture of the guy that invented it

[Perchoutofwater]

My brother and I were driving back from lunch today and saw a smart car. He asked if I was going to get my oldest daughter one when she turned 16. My answer was there is no way my daughter will ever get into one of those death traps.

[rajncajn]

Did someone say something about a cheap car being launched? Edited March 23, 2009 by rajncajn

[AtomicCEO]

Who was that guy that bought the Fit? Ooops...

 

MARCH 23, 2009 Industry's Big Hope for Small Cars Fades

Article

Comments

more in Autos »Email Printer Friendly Share:

Yahoo Buzz facebook MySpace LinkedIn Digg del.icio.us NewsVine StumbleUpon Mixx Text Size

By MATTHEW DOLAN

Last summer, when gas cost $4 a gallon, buyers snapped up small cars so fast that dealers couldn't keep them in stock. Now, with gas prices half that level, almost 500,000 fuel-thrifty models are piled up unsold around the country.

 

The turnabout comes at a bad time for the struggling U.S. car industry, which has revamped factories and shifted product plans to produce more small cars in coming years. The moves are prompted by coming stricter federal fuel-economy standards and the Obama administration's car-bailout plan, which encourages auto makers to boost their vehicles' mileage.

 

Practically every small car in the market is stacked up at dealerships. At the end of February, Honda Motor Co. had 22,191 Fits on dealer lots -- enough to last 125 days at the current sales rate, according to Autodata Corp. In July, it had a nine-day supply, while the industry generally considers a 55- to 60-day supply healthy.

 

For other models the supply situation is even worse. Toyota Motor Corp. has enough Yaris subcompacts to last 175 days. Chrysler LLC has a 205-day supply of the Dodge Caliber. And Chevrolet dealers have 427 days' worth of Aveo subcompacts. At the current sales rate, General Motors Corp. could stop making the Aveo and it wouldn't run out until May 24, 2010.

 

"I don't think Americans really like small cars," said Beau Boeckmann, whose family's Galpin Ford in southern California is the country's largest Ford dealer. "They drive them when they think they have to, when gas prices are high. But we're big people and we like big cars."

 

The logjam of small cars is caused in part by the recession, which has sapped sales of all types of vehicles. But it also underscores how badly gasoline prices have whipsawed the industry. A year ago, car companies rushed to react when Americans practically stopped buying large vehicles and flocked to hybrids and small cars.

 

 

Jim Stem for The Wall Street Journal

AutoWay General Manager Brian Speas stands next to a Honda Fit that has been on the Clearwater, Fla., dealership's lot for more than 140 days. The recession in part has caused a logjam of small cars at dealers.

Ford decided to convert some truck plants to make small cars. GM added an extra shift at its Lordstown, Ohio, plant that makes the Chevy Cobalt, a diminutive sedan. Import brands also pumped up their production of small models.

 

AutoWay Honda in Clearwater, Fla., last summer could hardly keep fuel-efficient models like the Civic sedan and Fit on the lot. "When one would come in, it'd be out the door the same day practically," said Brian Speas, the dealership's general manager.

 

Now, Mr. Speas is struggling to get customers to give them a look. He has a whole row of Civic hybrids that draw little interest, and a half-dozen Fits that have been sitting unsold for more than three months.

 

Yet despite the glut of small cars, many auto makers remain convinced the spike in gas prices sparked a long-term shift toward fuel-efficient models. Ford's top sales analyst, George Pipas, said that over the five months ended in February, industrywide sales of small cars totaled 718,000. That was down 28% over the same period in 2008, but small cars grew to 18.4% of total market, up 2.1 points from the year-earlier period.

 

"Our view is we are seeing a number of social, demographic and economic factors that will drive small and midsize cars in the future," Mr. Pipas said.

 

For now, though, dealers have to find a way to move the fuel-sippers that are gathering dust. Mr. Speas, the Honda dealer in Florida, just launched a radio campaign offering Civic hybrid leases at the same price as the model's traditional gas engine counterpart. Last summer, the hybrid fetched a $130-a-month premium over the standard Civic.

 

Yet the allure of such incentives seems to fade when gas prices don't seem so outrageous.

 

Wes Bean, a 37-year-old compliance manager for a mortgage company in Charlotte, N.C., started looking last summer at small cars, including the Civic. But soon, the father of two young children and his wife turned their attention to used cars. A few weeks ago, the Beans bought a used Nissan Quest minivan online through eBay Motors.

 

"Gasoline was a huge factor back then," he said. "Hopefully, you just knock on wood now that it won't go back fast to three or four bucks a gallon."

 

Write to Matthew Dolan at matthew.dolan@wsj.com

 

Printed in The Wall Street Journal, page B1

 

Can you show me figures that show that people are buying large trucks in higher numbers than last year?

 

Because if this guy is making the argument that small cars are less desirable than large cars based only on the fact that sales of small cars are down after the total collapse of the economy... then I wonder how he got a job writing for the WSJ.

[Cunning Runt]

Whenever you think traffic is bad here in the states, just be thankful you don't drive in India.

and

.

 

Example 2 would suck, but I kinda liked what was going on in Example 1.