Autoblog

Click above for a high-res gallery of the Tata Nano.

Indian carmaker Tata chose a site in Singur, India for the plant that would make the Nano, the world's cheapest car. Not long afterward, eleven petitions were filed in the Calcutta High Court stating that the purchase of the land for the factory violated the Land Acquisition Act of 1894. It was alleged that the government of Bengal forcibly took "fertile multi-crop agricultural land" from farmers for industrial use, which isn't allowed.

Earlier this year, the Calcutta High Court found in favor of the government of West Bengal (where Singur is) and Tata. Now another petition has been filed with India's Supreme Court over the issue, and the Supreme Court has asked the West Bengal government and Tata to respond.

The issue for the moment is that the Nano is supposed to go on sale in October -- but the next hearing over the land use petition won't be held until July. Some suppose a revised land deal might drive up the price of the car. Regardless, if Tata doesn't work out a production alternative, Tata won't get the head start it was hoping for on what could be a huge market.



[Source: Times of India via Detroit News]

It was rumored that Nissan/Renault was serious about fielding a low-priced competitor to the $2,500 USD Tata Nano, and the automaker made it official today by announcing a plan to produce an equally inexpensive car called the ULC in conjunction with Indian automaker Bajaj Auto. The two companies are forming a joint-venture to produce the ULC, which will be built at an all-new facility in Chakan, India at an initial rate of 400,000 units per year. The Tata Nano has no need for concern just yet, as the ULC isn't scheduled to go on sale until early 2011 in India and then even later in export countries. We're doubtful that the U.S. is among those export considerations, but parts of Europe will likely see the ULC not long after the Nano arrives in their market.

[Source: Nissan/Renault]

Countries like China and India are a hotbed for the auto industry, and every major automaker is looking to improve its standing in the emerging markets while they're still on the ground floor. Low-cost micro cars are all the rage in the East, and Nissan/Renault is looking into getting a piece of that action by producing a Nano fighter. Nissan Motor India Director Neeraj Garg told The Times of India that while higher priced sedans and SUVs are also scheduled for India's booming auto market, a low-priced hatch is also on the wishlist if the pricing is right.

Company officials say that the low-cost transportation could be among six new products scheduled for India by 2012, and with the country's low-cost labor, Nissan/Renault could also export any vehicles it makes there.

[Source: The Times of India]

Click above for more high-res images of the Toyota iQ

Toyota has been working on an affordable small car that will be cost-competitive in emerging markets, and Autocar is reporting that India is being considered as a destination for production. India makes sense due to its low-cost labor, and with competitors like the Tata Nano going for as little as $2,500, the world's biggest automaker will need to cut cost everywhere it can. There is no word as to exactly what vehicle would be produced in India, but one option is Toyota's production iQ from Geneva, which is scheduled to begin production later in 2008. Toyota is looking for initial sales of the iQ to crest 100,000 units.


[Source: Autocar via Winding Road]

Click above for a gallery of custom Nanos

For the time being, you have to live in India to buy a Tata Nano. The new people's car is slated for domestic consumption only for now, but that doesn't mean you can't unleash your inner Nano shopper. That's right, Tata's website now allows anyone to customize their own version of little fun-sized runabout. While the car's feature set is limited by necessity -- loading it up with options would run up the price, which would in turn defeat its purpose -- you can do a fair bit of personalization. The standard car gets brighter colors, while the ironically-named Luxury trim features more muted hues. From there, depending on the trim level, you can add foglamps, a number of wheel designs, and best of all -- decal packages! Throw on some racing stripes and crank up the IndiPop; 30-horsepower never looked so fast!


[Source: Tata Motors via Motive]

Click above for a high-res gallery of the Caparo T1.

The British engineering team at Caparo has quickly made a name for itself by diversifying its production and design expertise with the absolutely insane T1 supercar, while simultaneously landing the contract to supply body structures for the equally revolutionary, if far less expensive, Tata Nano. Caparo is looking to expand its line of products to include two new models that also span the spectrum from high-strung super coupe to a compact, lightweight city car.

Currently, Caparo has sold 20 T1s and has taken in around £4 million, which will aid in the development of both vehicles. The new high-performance model will be a more useable version of the T1, but Caparo's chief exec, Angad Paul, remained mum on the details. The other model will make use of innovative materials and packaging, and is likely aimed at smart's fortwo and other small, urban runabouts. The major push by Caparo is to make composite body panels less expensive in an effort to reduce weight and increase efficiency. "The carbon fiber route is not just for expensive cars," Paul maintains, "We are thinking of the Fiat Punto class."


[Source: Autocar]

As Tata's acquisition of Jaguar and Land Rover inches closer to completion, an anonymous source inside the Indian automaker has revealed that the company has secured a $3 billion loan in order to finally finance the take-over. The loan is reported to come from the banks of Citigroup and JPMorgan, although both financial firms as well as Tata have refused to comment on the reports.

Additional sources of funding for Tata could come from domestic and foreign debt markets, from which Tata could raise an additional $4 billion. That would also come in handy for investing in the production of the upcoming Nano, or even the rumored purchase of shares in Ferrari. Financial services analyst Standard & Poor's, however, is currently reviewing Tata's credit rating, which stands at a high BB+ level due to the increased debt the carmaker will inevitably incur from the acquisition of these two luxury brands from Ford.

[Source: Automotive News – sub. req'd]

General Motors can claim about three percent of the car market in India, and it wants more. Tata's $2,500 Nano will still be the lowest priced new car in the world, but GM wants to offer something less expensive than its $7,350 Spark for Indian buyers. Group Vice President David Reilly points out that while a sub-Spark would be inexpensive, competing directly with the Nano is not something GM intends to do. If a bargain basement GM were developed, it could be leveraged in other markets besides India – it seems feasible that it'd be easily ported to the also-emergent Chinese market.

Three quarters of cars sold in India are small vehicles, and if the General can ratchet up its market share with a new model, the gains in other new markets with explosive growth could help further offset the sluggish performance of sales in the United States. To help achieve that goal, another manufacturing plant is currently underway in Pune, and should be fully up and running by the end of this year. There are also plans for an engine plant in India, though no details are forthcoming yet.

[Source: Automotive News - sub. req'd]

Click above for a high-res gallery of the Tata Nano.

The Geneva Motor Show provided our first opportunity to get up close and mildly personal with Tata's potentially revolutionary Nano. Overall, we're pretty damned impressed. The squat dimensions and short overhangs lend themselves well to the Nano's protuberant proportions, and as much as we tried, we had a hard time finding where Tata really skimped on the exterior elements.

There were two models rotating on stage, the $2,500 "basic" version that's garnered more press than Paris Hilton and Lindsay Lohan combined, and the lesser-known "luxury" version that gets an enhanced interior, some color-keyed body panels, fog lamps and larger wheels with an additional bolt (the lesser model only sports three lugs versus the upgraded model's four). Unfortunately, when we asked to take a look inside, the nice gentlemen from Tata kindly told us that the doors were locked and we'd have to make better use of our telephoto lens. That might be an indication as to where Tata skimped on materials, but for the money, the intended audience won't be expecting Audi-quality interiors.

Click to view the Tata Nano in our hi-res image gallery

Tata's cut-price Nano budget car isn't even on the market, and already the Indian automaker is planning its successor. In an interview with German magazine Focus, Tata's Girish Wagh revealed that the second-generation Nano will be developed in four years from now and designed for an assault on the European market.

In order to market in Europe, the next Nano will need to comply with the stringent Euro 5 emissions and safety standards, and Tata will target three liters per 100km, down from the current Nano's already tiny-sipping 5L/km. Before the next Nano is ready for the European market, Tata will focus on its domestic market for two-three years, after which it will look at expanding into Africa, Latin America and Southeast Asia. As we reported earlier, Tata plans to avail itself of Fiat's dealer network in exchange for Jaguar-derived platforms for the upcoming Alfa Romeo 169 sedan.

[Source: Automotive News - Sub. Req.]