http://autoshow.autotrader.ca/2010/0...-nano-anymore/
As the world’s cheapest car is being prepared for release in the West, news comes that the $2,500 price tag of the Tata Nano will end up being significantly higher after the dust settles on the modifications required to roll it out in the United States. The reasons? Emissions and safety.
If you’ve ever been to India or China, it is evident that emissions are not a high priority; especially given that they have no emission restrictions under global environmental treaties. This has the tendency to keep the notion of emissions off the radar when releasing vehicles in their home countries. But when the Nano is being repurposed for a release in North America, it requires Tata to go back to the drawing board and re-engineer the two-cylinder, 623cc engine in order to meet pollution standards.
Beyond emissions, safety upgrades are needed to meet U.S. safety specs. This will include the installation of airbags, a strengthening of the roof as well as a lengthening of the front bumper in order to meet U.S. requirements to limit damage in an 8km/h crash.
Warren Harris, Tata Technologies President, would not say what the final price would be, only stating that the price would be more than the $2,500 charged in India. Leaving obtuse statements like this behind, one can look to the European market to get a better understanding of what the price range will be when the 12-inch Nano tires hit the tarmac in America – The European version is priced out at about $8,000. An anonymous Tata official has confirmed, off the record, that the U.S. price point should be comparable to the European one. The car with the lowest price in America (currently) is the Hyundai Accent. Priced at $9,970, it is looking more and more likely that the Nano is losing some of what seemed at first to be an overwhelming price advantage. It is conceivable that the U.S. modifications may increase the cost over the next three years and, given that the Nano’s current estimated price does not include shipping, the Accent and the Nano may be even closer in price range than current estimates suggest. But, three years is a long time in the automotive world and much can happen to alter the price point playing field for both manufacturers.
Although an exact release date is as yet unknown, the chairman of the group of Tata companies, Ratan Tata, has stated that the Nano should be ready for U.S. distribution by approximately 2013.
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