Tata Nano-: Features & Price

Cost Cutting Features.

i)The Nano's boot does not open. Instead, the rear seats can be folded down to access the boot.
ii)It has a single windscreen wiper instead of the usual pair.
iii)It has no power steering.
iv)Its door opening lever was simplified.
v)It has three nuts on the wheels instead of four.
vi)It has only one side view mirror.
vii)The front seats are identical and have integrated headrests.

Price.

(2009 -03-22)^[update]Tata initially targeted the vehicle as "the least expensive production car in the world" — aiming for a starting price of 100,000 rupees or approximately US$2000 (using exchange rate as of 22 March 2009)6 years ago, despite rapidly rising material prices at the time.

As of August 2008^[update], material costs had risen from 13% to 23% over the car’s development, and Tata faced the choice of:

i) introducing the car with an artificially low price through government subsidies and tax-breaks

ii) forgoing profit on the car

iii) using vertical-integration to artificially boost profits on cars at the expense of their materials industries

iv) partially using inexpensive polymers or biodegradable plastics instead of a full metal-body.

v)raising the price of the car.