Tata sells 203,000 Nanos in 2 1/2 weeks; most buyers go for options
More than 203,000 people have bought the ultra-cheap Nano car in India, yielding sales of 25 billion rupees (US$512.6 million), Tata Motors said Monday.
The sales are significant in a country where just 1.5 million passenger cars were sold last year _ and where the Nano was on sale only from April 9 to April 25, due to production constraints.
The tiny Nano was meant to herald a revolution in transport for the world's poor, putting cars within reach of many first-time buyers.
But Tata said only 20 per cent of customers opted for the cheapest version of the car, which retails for 100,000 rupees (US$2,050) plus tax and transport costs.
Half of the orders were for the most deluxe version of the car, which comes with air conditioning and power windows, and the remaining 30 per cent for a mid-range model.
Production constraints complicated the sales process. Violent farmer protests forced Tata to relocate a factory that was to build Nanos, and the replacement plant won't be operational before year's end.
This means the company will only be able to deliver 100,000 cars from July through the end of 2010. Tata Motors will randomly select 100,000 people to get those Nanos.
``Tata Motors places on record its gratitude to the people of India for according such a warm welcome to the Tata Nano,'' the company said in a statement Monday night.
But analysts say the Nano is unlikely to turn around the troubled finances of Tata Motors, struggling to refinance US$2 billion of the $3-billion loan it took out to buy Jaguar and Land Rover from Ford Motor Co. last year.
