Tata Making Nano Variant for U.S. Market

Washington DC January 5, 2010; The AIADA newsletter reported that India's Tata Motors Ltd. is developing a new variant of its Nano mini car – the world's cheapest car – for the U.S. market, which would be ready in three years.

Tata's chairman said today. "We also recognize there is a market not only in developing countries, but possibly for a low-cost car in developed markets. For the U.S., we need a car that will have a larger engine, which needs additional crash tests, modifications, and we're in the process of doing this," Ratan Tata said at the Auto Expo 2010 in New Delhi.

Tata Nano

According to the Wall Street Journal, the Nano was the show-stopper at the 2008 New Delhi Auto Expo, with the mini car grabbing headlines across the world owing to its low price of about $2,500.

According to USA Today, Tata Motors has doubled its December sales compared with last year. The demand for low-cost, fuel-efficient cars has prompted several global auto makers to announce their own plans for similar models to the Nano.

Small cars account for nearly two-thirds of car sales in India, where annual sales are forecast to grow to 3.0 million units by 2016.

Tata Motors controls Jaguar and Land Rover, which it acquired for $2.3 billion from Ford Motor Co. in June 2008.