The Tata Nano is going to cost much more than Rupees One lakh!!!

With the Tata Nano finally launched, and bookings closed for the public, all expectations are on Ratan Tata and his team when the cars will be delivered to the proud owners. Having said this, much furore has been made over the cost of the vehicle and more often than not, we hear people complaining that Ratan Tata had promised to give a car at One Lakh, and now its gonna cost much more than a Lakh. And added to that, it does not have all the features like power steering, ABS, airbags, power windows, AC etc. 

Some facts. Ratan Tata made the promise way back in 2003. When he had made the comment, it was only a passing reference which was blown out of proportion by the media. Having said that, coupled with the commercial success of Ace, gave him more confidence and Tatas came out with a concrete plan for the same. But ever since material costs have sky rocketed like anything in the last couple of years. The frequent delays caused due to various reasons, some being political and some other, has definitely not helped the Tatas' case. Time and again, he has been ascertaining that its going to be very very difficult to keep the costs within the 1 lakh threshold. Having come across so many hardships, its really commendable to be coming out with the Nano, at whatever price it is being offered to the customers.

Yes!! Nano is going to cost more than one lakh. Though a lot has been done to cut the costs, viz only one windshield wiper, only one rear view mirror, no power steering and simplification of various linkages, replacement of steel with fibre wherever possible, it still was difficult to contain it in the range that was promised. The base model comes to Rs.123000 which is the most simplest model. Advanced versions which have central locking, power windows and air conditioning are going to cost upto Rs.175000. And these figures are only ex showroom prices on which VAT, Life Tax, and other expenditures have to be incurred by the consumer.

What bothers me most is the way critics are making a mountain of a mole. If Ratan Tata has not been able to give a car at Rs 1 lakh, whats their problem. Atleast he has made an attempt and atleast he is giving it at 1.5 lakhs. Which other manufacturer in India has even thought about that?? And look who is speaking. Its not the common man for whom it has been designed. Its not the barber or the butcher, whose dreams of owning a car is coming true. It is them, who already have enough cars in their homes, who are cribbing about Nano. Come on guys, have some respect for the person who has seen the dream of rural India, the dream of an average middle class family to drive safely in the comforts of a four wheeler. In fact I really admired Tata, when he had the idea of selling the Nano to only those customers who do not have any other vehicle. This would mean restricted marketing and sale in cities and metros. Going by statistics, almost 72% of cars in India are sold in A and A+ cities. By cutting down on this, please calculate how big a risk he has taken. Its a different matter that with the launch of Nano, that statistic will change! And yeah, please be aware, that Tatas are selling Nano's at a very minimal profit. Neither the company nor the dealers are going to make anything out of it!!

People have also raised the issue on the quality of the car. For your information, the car conforms to all the necessary statutory requirements in terms of security. Using simple common sense, if Tata's compromise on the quality of the car, they themselves will be at the receiving end having invested so much and having faced so much of trouble so far.

Eminent environmentalists have questioned about the eco friendliness of the car. The car has been certified by ARAI (a GOI body, having nothing to do with Tatas) to meet the norms of BS III for emission. And it is definitely wrong to blame Tatas if there are more cars on the road. Yes it will raise the demand for fuel, it will lead to congestion in roads, it will lead to huge parking problems. If an Indian city is unable to cope with this, its the Government which is to be blamed for not having provided the required infrastructure. Atleast they had enough time to plan.

After seeing through all the hardships, of varying magnitude starting with the Singur pull out(which has hurt Ratan Tata the most), to the recent resentment over the pricing and concerns over various issues regarding the performance of the car, it is highly commendable that the Tata's have finally managed to come out with it. A two cylinder 624cc rear engine, coughing 33HP of raw power, running at a maximum speed of 120 kmph, a 15 litre petrol tank, offering a decent fuel consumption of around 20 kms per litre, is infact a great deal. If you still want AC, power steering, ABS, airbags, central locking etc for one lakh, GIVE ME A BREAK!!! You don't even deserve to own a car!!!