Video: Tata Nano Seen First Time In Motion

Since its official debut at Delhi Autoexpo earlier this year, Tata Nano, the world's cheapest car, has never been photographed testing, until now. An Indian man who had a video camera, caught a base model Nano driving on the famous Pune-Mumbai Highway performing a test run.

Tata To Take Nano To Europe In 2012

European buyers have to wat four years to buy a Tata Nano. World’s cheapest car at a suggested price of €1,722/ USD 2,500 has an initial production plan of 250,000.

The main barrier to Euro entry will be stringent crash standards and Euro 5 emission standards. "We will develop a successor model in four years time, which will meet the Euro 5 emission regulations and the crash standards in Europe," Girish Wagh, head of Tata’s compact car division, was quoted as saying by German weekly Focus.

Another target is to reduce the average fuel consumption from 5 litres per 100km (62.5 miles). Initially the Nano will be marketed and sold in developing countries in Southeast Asia, Latin America, Africa and Asia.

Toyota Takes It To Tata

It is no industry secret that India-based Tata Motors has shaken the automotive world with release of their $2,500 Tata Nano. Called "The People's Car," the Nano has the potential of being a huge hit in the company's home country.

Both GM and Toyota have said they plan to work out a vehicle that could rival the Nano. What had been unclear is if the automotive giants could match the ultra-low price point Tata has set. It looks like Toyota can. The Times Of India is now reporting that Toyota has informed India Prime Minister Manmohan Singh of their plans to begin building small cars in India.

The investment to produce cars meant for export out of India will cost less to Toyota because of the low standard wage and purchase parity India has with other nations. That means more can be purchased for the same amount of money in India than in countries like Japan, the United States, and the United Kingdom.

Toyota President Katsuaki Watanabe was quoted as saying, "There is a huge market for low-cost/price vehicles," but he expressed concern about Toyota's ability to maintain a high level of quality.Today, India's Commerce and Industry Minister, Kamal Nath, told The Times, "[Watanabe] met me and informed me that Toyota would be doubling its investments in India and would also make small cars in the market that would be exported to other countries as well."

Production of the car will take place at Toyota's current joint-venture facility near Bangalore. Final details are expected to be announced in three to four months. As the new World's Largest Automaker, this move will be key for Toyota to maintain global market share in the future.

GM To Compete With Tata Nano

GM is looking at building cheap cars which compete with Tata's Nano. And GM's part-ownership stake in Wuling Motors, a Chinese manufacturer of sub-$3,000 utility vehicles as a possible source of a GM Nano competitor.

Lutz said that one way to make an inexpensive car for the developing world is to repurpose a legacy platform that has become obsolete. The tooling and design will have long been paid off, and there'll be plenty of experience from the manufacturing side, too. This is what GM China is already doing with the Daewoo Matiz/Chevrolet Spark. It might be not good of dumping an old product that isn't safe or clean enough for mature markets, but it is good enough in other parts of the world. That said, it could also be a way to maximize the life of an investment while also providing developing markets with a better product than they'd have otherwise.

What Can You Buy With $2,500 ?

Tata has finally revealed its $2,500 car. The Tata Nano was unveiled at the New Delhi Auto Expo. The car has a 30-horsepower 624-cc engine; a four-speed manual transmission; a disc/drum brake setup; room for five; and claimed fuel economy of 54 US miles per gallon. There will be tw0 versions: Standard Nano and Luxury Nano.

Tata claims that the car meets safety and environmental standards (such as Euro IV emissions compliance).

Gallery: Tata Nano