India's Tata Debuts $2,500 Car

Tata Motors' Nano could add millions of cars to India's already congested roads

By Jim O'Neill, Newser Staff

Posted Jan 10, 2008 10:34 AM CST

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India's Tata Debuts $2,500 Car — Tata Company Chairman Ratan Tata gets off the newly launched Tata Nano at the 9th Auto Expo in New Delhi, India, Thursday, Jan. 10, 2008. India's Tata Motors unveiled its much anticipated US$2,500 car, an ultracheap price tag that suddenly brings car ownership into the reach of tens of millions of people... (Associated Press)

It has no radio, air conditioning, or passenger-side mirror and only one windshield wiper; but what Tata Motors' newest offering, the Nano, does have is a price tag that could help millions of people become car owners: $2,500. The tiny 4-door sub-compact, the world's cheapest car, was unveiled at India's biggest auto show yesterday, prompting fears that it
will worsen pollution and make India’s already crowed roads impassable, reports the AP.

Nobel laureate and climatologist Rajendra Pachauri says he’s “having nightmares” about the low-cost car. But company chairman Ratan Tata says the Nano, which averages 50 miles per gallon, will pollute less than motorcycles and will meet all safety standards. Experts say the car could force other manufacturers to lower their prices. (More Tata Motors stories.)

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