Autoblog

click above to view more high-res images of the Tata Nano

Tata has pulled the wraps off its long-discussed and highly-anticipated 1-lakh (around $2,500) car. The orb-like Tata Nano was unveiled at the New Delhi Auto Expo today, boasting a 30-horsepower 624-cc engine; a four-speed manual transmission; a disc/drum brake setup; room for five (based on the above photo); and claimed fuel economy of 54 US miles per gallon. There's no power steering, and you'll find more instrumentation on many wristwatches -- the Nano has only a fuel gauge, speedometer, and oil light. Suspension? Well, it has one. Tata claims that the car meets safety and environmental standards (such as Euro IV emissions compliance), and we're sure it won't be long before tests show whether the car is indeed up to snuff in those areas. Say hello to the new "people's car," brought to you by the same folks who hope to sell you Jaguars in the not-so-distant future. We'd say that if all goes as planned, Tata's got just about every possible demographic covered. Thanks for the tip, RV!

UPDATE: Official Tata press release added after jump.
UPDATE 2: Official pics added to gallery.

[Source: Rediff, photos by Manan Vatsyayana/Raveendran for Getty]

Tata Motors has disclosed that it is working with General Electric's plastics division to develop solutions for its forthcoming ultra-low cost small car.

Widely referred to in India as the "Rs 1-lakh" (100,000 rupees) car, the Tata project could be a breakthrough product for the company, with potential domestic sales of 1 million units per year. The four-door, rear-engine car will sell for only $2,200 - less than half the price of current entry level cars in the Indian market.

Tata chairman Ratan Tata has stated that the small car will make extensive use of plastics for the body, replacing welding with adhesives to decrease assembly costs. In an effort to cut down on distribution costs, the company is considering shipping modular car kits to small, local business units combining assembly, sales and service under one roof.

GE plastics are already in widespread use by automakers, primarily with a view to reducing weight (thereby increasing fuel efficiency). The Smart ForTwo makes extensive use of plastic body components, and BMW's 6-Series uses GE plastic front fenders.

[Sources: Reuters, Hindu Business Online, GE PLastics]