Tata unveils tiny Nano car — for less than €1,700

INDIA’S Tata Motors yesterday unveiled its $2,500 (€1,695) car, an ultra-cheap price tag that brings car ownership into the reach of tens of millions of people.

But critics worry the car could overwhelm the country’s roads and create an environmental nightmare.

Company chairman Ratan Tata, introducing the Nano during India’s main auto show, drove onto a stage in a white version of the tiny four-door subcompact, his head nearly touching the roof.

With a snub nose and a sloping roof, the world’s cheapest car can fit five people — if they squeeze.

While the price has created a buzz, critics say the Nano could lead to possibly millions more automobiles hitting already clogged Indian roads, adding to mounting air and noise pollution problems. Others have said Tata will have to sacrifice quality and safety standards to meet the target price.

Mr Tata though, insists the car will meet safety standards and pollute even less than motorcycles, passing domestic and European emission standards and averaging about 20km per litre.

Chief UN climate scientist Dr Rajendra Pachauri, who shared last year’s Nobel Peace Prize, said last month that “I am having nightmares” about the prospect of the low-cost car.

“Dr Pachauri need not have nightmares,” Mr Tata said at the unveiling. “For us it’s a milestone and I hope we can make a contribution to the country.”

The basic model will sell for 100,000 rupees — €1,695 — but analysts estimate that customers could pay 20%-30% more to cover taxes, delivery and other charges.

The company has said they expect the car to revolutionise the auto industry, and analysts believe the Nano may force other manufacturers to lower their pricing.

For now, the car will be sold only in India, but Tata has said it eventually hopes to export it.