The Nano in retrospect

A senior graduate student in the Department of Mechanical Engineering at the Indian Institute of Technology looks at the development of the world's cheapest car and its effect on Indian car users.

A FOUR-WHEELER IS CONSIDERED A LUXURY and dream for a family in India. In 2003, Ratan Tata, Owner and Chairman of Tata Sons Ltd., dreamed of a vehicle for the lower middle class strata of people of India. His people's car would be a vehicle that would be safer than a scooter or motorbike for a family-and it would be the world's cheapest car. The Tata Nano idea was born.

Tata promised the Indian people he would deliver a four-wheeler within the budget of lower middle class, and he set a price goal of Rs100,000 or about $2000, thus the car would also get the popular name of Lakhtakiya (Cost=1 Lakh) Car. But did Tata succeed in his dream or did the Indian market reject the Nano people's car?