500,000 Pre-orders for Tata Nano

Tata Motors has announced that after 15 days of opening the application process, it has received 500,000 pre-orders for the Nano, generating millions in revenue from the application fee.

Potential buyers can place their orders at over 30,000 locations throughout India until April 25. At a cost of 300 rupees ($6), the 500,000 pre-orders have already generate over $3 million for Tata. Tata expects about 750,000 to 1 million pre-orders, resulting in revenue of $4.5 to $6 million from fees.

After the April 25th deadline, Tata will hold a drawing to randomly choose the first 100,000 customers who will receive their Nanos in July. State Bank of India will finance Nanos at a rate of 10 percent during the first year, with loan tenures of 7 years.

A Tata Motors spokesperson called the response so far has been “encouraging.”

Tata initially said it would not bring the Nano to the U.S., but later said a decision would hinge on market conditions. And with the possibility of Tata bringing the Nano the Europe – which would require the company to adhere to Europe’s stricter safety requirements – it’s quite possible we may one day see the ultra-cheap tiny car.

Source: Business Standard