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Rising steel costs could push Tata’s Nano past $2,500 mark

07/08/2008, 12:38 PM

By Drew Johnson

Tata’s upcoming Nano microcar is being touted as the world’s most inexpensive passenger car, but rising steel prices are threatening the Nano’s bargain-basement $2,500 price tag. With steel prices shooting up 30 percent in the last quarter alone, Tata is now asking some suppliers to help absorb added costs in order to retain the Nano’s minuscule sticker price.

Tata has asked some suppliers to help with as much as 50 percent of the price hike, while others have agreed to contracts based on volume rather than one flat price — the latter a common business practice in India.

“There are different rates for if they buy 10,000 units or if they buy 25,000,” the CEO of a Delhi supplier told Automotive News. “That’s never happened in India, where we usually set prices for the next six months or the next year.”

Tata Motors’ parent company – Tata Group – also owns Tata Steel, which should help to keep steel prices under control. However, it remains unclear if Tata will be able to deliver the Nano to market with a price of $2,500.

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07/08, 12:41 PM

posted by:

beatusmongous

Bad news, guys. It’s going to be $2,699.95. Plus tax.

07/08, 12:49 PM

posted by:

RaineMan

Wait… steel… seriously??!!?? I thought those things were made of aluminum and plastic.
Seriously though… as long as they can keep the cost under $5000 it’ll sell like crazy. I see plenty of the little Smart cars around… and they’re way overpriced.
I just wonder if the Tata dealership is really going to be a convienience store with a little fenced in lot around back… I can’t imagine a salesman making much commission on a car like that. Or will they just take all the orders over the phone from India like they do with Dell computers? Wait a week and your car shows up in a little brown box.

07/08, 12:52 PM

posted by:

beatusmongous

Yeah, really. “Just pick up your new TaTa Nano at your local AM/PM.”

Or, “Some assembly required.”

Actually, that’s a good way to keep the price down. Mail them to us in a bunch of boxes, and we snap it together ourselves.

07/08, 12:55 PM

posted by:

jumpoffit

would you like some beefjerky with your Nano my friend :)

07/08, 12:57 PM

posted by:

beatusmongous

Buy a Slurpee and a Nano, and get a free cup holder.

07/08, 12:59 PM

posted by:

bigs4610

These cars are stupid, small and unsafe. I’m not sure about the rest of you, but I like a little more steel between me and the 18 wheelers on the road…

07/08, 1:15 PM

posted by:

johnnycanuck

It’s not how much steel you’ve got, but how you use it.

07/08, 1:28 PM

posted by:

shaver

Too rich for my blood.

07/08, 1:54 PM

posted by:

xyunya

Hey, I saw Mahindra tractor commercials on TV another night! On military channel, nevertheless. They are coming….

07/08, 2:19 PM

posted by:

TOZO

At least the Chinese don’t have to worry about high steel prices. Their cars use lead and aluminum foil only.

07/08, 2:20 PM

posted by:

mayer_ray_nagin

They could regain the cheap status if they switch out of $10 airbags and into the $1 airbags that China uses.

07/08, 2:35 PM

posted by:

RaineMan

Bigs… one of these cars could go underneath an 18-wheeler and not hit anything. Remember that stunt from “Fast and the Furious”… same idea.
I don’t know how many times I need to say it. These ultra small cars are much akin to motorcycles… use small size and manouverability to your advantage.

07/08, 2:49 PM

posted by:

beatusmongous

Exactly, RaineMan. ACTIVE safety features, as opposed to passive safety features. And the active safety features include things like handling, braking, visibility, and that adrenaline rush you get when that 18 wheeler is running you off the road.

07/08, 3:34 PM

posted by:

RaineMan

Hopefully these little things will atleast be able to do 0-60 in under 20 seconds.

07/08, 3:46 PM

posted by:

beatusmongous

The Karmann Ghia does 0-60 in something like 23 seconds, and yet it was considered a sports car.

07/08, 3:55 PM

posted by:

johnnycanuck

23 seconds? Hell I consummated my marriage quicker than that.

07/08, 4:10 PM

posted by:

beatusmongous

I feel sorry for HER.

07/08, 4:11 PM

posted by:

Jon

The price is getting out of hand. Maybe a 60-month lease might be in order…

07/08, 4:36 PM

posted by:

g35

most of you are forgetting one crucial thing.. this car is going to make its mark in india

having been there this past year, i can tell you that most of the ppl there ride bikes or rikshaws, in the middle of the street amid trucks, cars and cows

no ones in a rush, and accidents are shockingly scarce… the nano is simply an alternative mode of transport for an entire family amid the busy streets

07/08, 5:05 PM

posted by:

THawkoo

Surely, ultra cheep cars in INDIA will stem the tide of global-warming-causing emissions!

07/08, 5:07 PM

posted by:

Jon

…an even better deal might be to pick one up fresh off a lease that is CPO…

07/08, 5:11 PM

posted by:

zeeck

i dunno why you guys are so scared of these cars, unless you go out of america you will never see one, the us actually has standards on safety, and these cars have none, great for taking out the millions of mopeds on the road in india/korea/china/etc though :)

07/08, 5:31 PM

posted by:

AmericanIdiot

good point g35, and I’m not sure if India has 18 wheelers like we do out here. They have rigs, but not humongous ones that travel on our highways. Plus the speed limit there is not high.

07/08, 7:34 PM

posted by:

1c3d0g

Steel is obsolete. It’s time to mass-produce other materials which are equally strong yet much lighter, if they want to keep the pricing low.

07/08, 10:00 PM

posted by:

MugenSentraKen

=======>>i would hate to crash into an 18wheeler or ANY truck in India at that there would be dead chicken&dogs+BBQ sauce EVERYWHERE!!

07/08, 11:14 PM

posted by:

monte

Its too bad when your 1/4 mile time is less than your 0-60

07/09, 8:04 AM

posted by:

JohnnyBlazE

Damn Americans spelling it Aluminum eh RaineMan, when Aluminium fits better with other elements with -ium at the end.

But I hear it was made common by someone who figured the extra syllable would confuse the stupid American populace when marketing his siding or whatever the hell else he was marketing.

The Nano will do it’s job.

07/09, 3:44 PM

posted by:

mayer_ray_nagin

Johnny you ‘tards can’t even pronounce the C in sChedule so don’t us colonials any §hït.

And gimme my tea tax back with interest already!

07/09, 3:55 PM

posted by:

beatusmongous

Mayer, by ” ‘tards” do you mean “retards” or “ƒµ©ktards”?

07/21, 5:10 AM

posted by:

GrinGo

Everyone makes fun of this car. But why? Wait until we see it here in the states take it for a test drive and then say vouch your opinion. I would get one. Are they safe? I don’t know. But is any car safe? I just don’t want to spend $200 in gas every week. In some vehicles even more. With how much the gas is now a days….I think I’ll make the change.

07/21, 5:12 AM

posted by:

GrinGo

If there coming from India……i hope it’s not Bin Laden’s suicide cars to get back at USA……….THINK ABOUT THAT YA’LL……

 
 
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