India's Tata to launch Nano car in Bangladesh

Oct 14, 2011
India's Tata Nano, billed as the world's cheapest car, will go on sale in Bangladesh -- but with a price tag nearly triple what it is at home. The least expensive no-frills Nano will cost 599,000 taka ($7,900).

India's Tata Nano, billed as the world's cheapest car, will go on sale in Bangladesh on Saturday -- but with a price tag nearly triple what it is at home.

The least expensive no-frills Nano will cost 599,000 taka ($7,900), said Abdul Matlub Ahmad, director of Nitol Motors -- Tata's sole distributor in Bangladesh.

That price compares with 141,000 Indian rupees ($2,870) for a basic Nano model in India.

"We are now taking orders -- initially we'll sell 3,000 Nano cars. We hope it will be a big hit in Bangladesh," Ahmad said, adding that the Nano's official would be in Dhaka on Saturday.

Both the Nano and other rival produced by companies such as Maruti are significantly more expensive in Bangladesh as importers have to pay 132 percent tax on each , he said.

"The price will come down once we start assembling the car here. If the car becomes popular in Bangladesh, Tata has a plan to manufacture the car locally," Ahmad said.

"We anticipate the Nano will be very popular because it is extremely fuel efficient. You can drive more than 25 kilometres (15.5 miles) with a litre of ," he said.

Petrol, diesel and have risen sharply in Bangladesh over the past year due to rising global oil prices and the phasing out of government fuel subsidies as Dhaka struggles to rein in its soaring imports bill.

The Tata Nano, billed by the company as the "people's car," generated worldwide interest when it was launched in 2008, and the company is already marketing it in Sri Lanka.

When the Nano was launched, it was expected to create a vast new market segment in India, a nation of 1.2 billion people, but its sales have fallen far short of the hopes.

Analysts attributed the Nano's poor sales to concerns over safety, lack of cheap financing and operational hiccups after production shifted to a new plant.

Last year, Tata was forced to offer free safety upgrades after around half a dozen of the cars caught fire.

Explore further: Construction begins 2016 for Hyperloop on five-mile stretch

add to favorites email to friend print save as pdf

Related Stories

India's Tata group to sell $700 flat-pack house

Jul 17, 2011

The Indian company that launched the world's cheapest car has unveiled its latest product for the fast-growing nation: a flat-pack house that costs just $700 and can be built in a week.

Jaguar and Williams F1 set for UK-made hybrid car

May 08, 2011

Indian-owned automaker Jaguar has joined forces with Formula One racing group Williams to produce a British-made commercial model of their hybrid C-X75 supercar, the pair announced on Friday.

Lamborghini unveils new Aventador supercar

Mar 01, 2011

Record gas prices and a sluggish economy are driving many automakers to offer electric, hybrid and other less expensive cars to attract cautious customers. But that's not an issue for sportscar maker Lamborghini.

Recommended for you

Personalized factory workstations

4 hours ago

Tomorrow's factory jobs will be completely different from those of today. Although they will continue to be organized around assembly stations, they will not work in rigid shifts, be subject to inflexible ...

High-precision radar for the steel industry

5 hours ago

Steel is the most important material in vehicle and machinery construction. Large quantities of offcuts and scraps are left over from rolling and milling crude steel into strip steel. New radar from Fraunhofer ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.