Indian auto major Tata Motors’ car which also claims to be the world’s cheapest car which was reported be launched in Bangladesh in earlier reports now have to wait for some time. It was reported that the launch of Tata Nano was delayed at the last moment in Bangladesh after its distributor said Saturday it was seeking a cut in price.
The Indian based automaker Tata Motors had launched of its self-proclaimed world’s cheapest car, the Nano, in Bangladesh, but its high price, being almost three times more expensive than on its local auto market
According to reports, Nitol Motors, Tata’s sole distributor in Bangladesh, was due to launch the car at a fair on Saturday but high taxes meant the price tag for the least expensive no-frills Nano would be 599,000 taka ($7,900). That compares to 141,000 rupees ($2,870) for a basic Nano model in India. The reports quoted Abdul Matlub Ahmad, director of Nitol Motors as saying “A lot of people came to us for booking at the fair. At least 23 people confirmed their interest. But we’ve deferred launch of Nano at the last moment as we’re seeking a re-look at the price, which some say is too high.”
It was reported that both the Nano and other small cars produced by foreign companies such as Maruti are significantly more expensive in Bangladesh as importers have to pay 132 percent tax on each car, he said. “We anticipate the Nano will be very popular because it is extremely fuel efficient. You can drive more than 25 kilometres (15.5 miles) with a litre of gasoline,” he added. Fuel prices have risen sharply in Bangladesh over the past year due to rising global costs and the phasing out of government subsidies as Dhaka struggles to rein in its soaring imports bill, according to reports.
“A lot of people came to us (to place orders). But we deferred the launch of Nano at the last moment as we’re seeking a review of the price which some say is too high”, said the director of Nitol Motors, the local distributor of Tata, Abdul Matlub Ahmad.
According to the Nitol Motors official, the Nano is expected to enter production in Bangladesh, which is supposed to cut its price from the current 7.900 USD close to the Indian 2.870 USD, eventually making it a huge hit on the local market.
“The price will come down once we start assembling the car here. If the car becomes popular in Bangladesh, Tata plans to manufacture the car locally. We anticipate the Nano will be very popular because it is extremely fuel efficient. You can drive more than 25 kilometers with a liter of gasoline”, added Ahmad.
The Tata Nano is the cheapest road car in the world but its price continues to rise because of the increasing material costs. At the time of the launch in India, the Nano was available in three trim levels, the Std, the CX and the LX. The Nano is powered by a two-cylinder petrol engine with Bosch multi-point fuel injection which is developing 33 horsepower and the car can hit a top speed of 105 km/h or 65 mph.
