Production, Pricing Issues Delay Launch of Tata Nano

The world will have to wait a little longer for the world’s cheapest car. The Tata Nano, billed as a well-made car cheap enough for millions of people to buy, is facing substantial roadblocks in coming to market.

One obstacle lies with the car’s manufacturing location.; After brushing aside concerns regarding local protests and debate from opposing political parties, Tata Motors announced that it was shutting down construction on its proposed factory site in West Bengal, India.; Instead, Tata’s looking at building the Nano within its existing factories.

The move means Tata will lose government subsidies viewed as a crucial part in creating such a low-priced car. The shift also makes the original October launch date impossible.

Tata’s also facing difficulty pricing the Nano.; The car was designed to sell for only $2500, making it affordable to millions of customers around the world.; However, between the production complications, the rises in the cost of materials, and the lack of subsidies, the automobile dubbed “the people’s car” may not be as affordable as was once hoped.

Source: Telegraph