Do you remember the problems Tata is facing as it gets ready to build the Nano, the world's cheapest car? Well, the Indian manufacturer has now officially decided to move the location of the factory. The new plant will be built in Sanand, India (that's near Ahmedabad, in the state of Gujarat). The plant will be quite large, covering 1,100 acres (445 ha), and have an initial capacity of 250,000 units annually, which could be expanded to up to 500,000 cars per year, Tata said. Although initial plans aimed for production to start this month, it seems that the new cars will now roll out next March. Our source also reports that a CNG and an all-electric version of the Nano are on the drawing board.



[Source: Reuters]

Questions about the future of the Tata Nano - questions that flared up when the plant that was to build the world's cheapest car was put under siege recently - are starting to be answered, but only just. The protest at the plant has now ended, the BBC reports, and the fallout is now beginning.

Opposition groups - which were protesting the way that land for the plant's expansion was acquired by the local government - stopped their protest after the government promised to return some of that land. But, the work stoppage at the plant has not yet ended because Tata Motors is "distressed at the limited clarity on the outcome of the discussions between the State Government of West Bengal and the representatives of the agitators in Singur," according to a company spokesman who talked to the BBC. Even though the Nano plant would still have land to grow under the expected new deal, whether the company moves Nano production to another part of India is still unknown.

[Source: BBC]

Tata Motors has confirmed that the rumors of an all-electric Tata Ace and the all-electric Tata Indica are true. In an unveiling in India this past week, the company took the wraps off of two lithium-ion battery-powered EV prototypes based on the Ace work truck and the Indica sedan (pictured). As we heard earlier this year, the Indica EV will first be sold in the Norweigian market next year because the Scandinavian country "has the necessary infrastructure in place to run electric cars which India lacks," as Tata Motors President Ravi Kant put it. Indians will get their own chance to buy the car in about 24 months. According to the Business-Standard, the all-electric Indica has two battery packs which can charge in eight hour and go around 110-120 miles on a charge.

Now, about an electric Nano...

[Source: Business-Standard]

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With work halted at the factory that is to build the Tata Nano, the future of the world's cheapest car is uncertain. Well, we're still pretty certain that it will be built somewhere, but the details are much more hazy now that people in the West Bengal region have spoken out against the way Tata Motors got the land to expand their plant. Tata might pull out and move to a more-friendly region, but what does the whole kerfluffle mean for cheap motoring in India and the world?

Writing in Automotive News Europe (subs req'd), Jesse Snyder makes a clear statement: "No matter who "wins" in the protracted protest over land in India's impoverished West Bengal region, the innovative Tata Nano will lose." Snyder's article is a fair look at the situation and says that the main problem here, for Tata Motors, is lost time. Ultra-cheap cars are coming for the masses, and if Tata wants to be in the game (a game they helped create), then they need to find a solution fast. Of course, if you're of the mindset that ultra-cheap cars are not what the planet ordered, then perhaps one siege isn't enough for you...


[Source: Automotive News Europe]

Earlier this week, we heard rumblings that workers at the east India plant that is supposed to build the Tata Nano could be besieged by members and supporters of the opposition party in the state. Automotive News Europe now brings us an update and says that the dissatisfaction against Tata Motors resulted in a work stoppage today when thousands of workers stayed home because of protests against the company. Police took 3,600 workers out of the factory yesterday.

The dispute is over 1,000 acres of land that Tata acquired from farmers in the area, and the company has expressed a willingness to move the factory if resistance doesn't die down. The farmers want to keep their land, while the government wants to give the land to Tata to help them build the much-hyped car, famous for being the world's cheapest. A Tata Motors spokesperson issued this very safe statement: "Our workers are not working today. We are assessing the situation as of now."


[Source: Automotive News Europe]

I never thought I'd be typing in the words "nano factory siege" into Google, but now I have. On the drive home last night, I heard a staticky report on BBC Radio about some sort of siege, starting today, at the plant that is supposed produce the world's smallest cheapest car. Since I didn't catch the whole story on the radio, I thought I'd see the the Internets can tell me. In short, it's a tricky situation, but the BBC has the details.

Apparently, because Tata Motors is one of the biggest companies in India, the opposition party in West Bengal - where the plant is located - is protesting the a move by the governing communist party. The point of contention is (I think) the thousand acres that the state seized for the factory's expansion. Tata chief Ratan Tata is threatening to move the production facility to another state if things don't calm down - and other states are saying they're more than happy to welcome him. We'll keep an eye on this, as the Nano promises to be a game-shifting vehicle wherever it is built.


[Source: BBC]

Click above image for a hi-res gallery of the Tata Nano

Tata is asking Fiat to assist in selling the Nano overseas, as an expansion of the two marques partnership in manufacturing and distributing cars, engines and commercial vehicles. Fiat's initial intentions are, however, largely directed towards bus and truck manufacturing. "We have held talks about the Nano being marketed in markets where Fiat has already a strong presence. I am open to consider a partnership," said Ratan Tata at a forum promoting cooperation between Italian and Indian companies.

Tata is also forecasting supply problems for its new microcar, which goes on sale next October. That said, high raw material and fuel prices have cut demand for vehicles in India. Between that development, the burden of the Jaguar/Land Rover acquisition, and a 31% decrease in profits, it'll be interesting to see if Tata is ultimately able to keep the Nano priced as low as planned.


[Source: Automotive News]

click above for more images of the Tata Nano

Those in emerging markets hoping to get their hands on the cheapest car in the world may soon have a few more option boxes to consider checking. Chairman Ratan Tata has said in the past that an electric-only version of the Tata Nano is likely, and now industry sources are saying that a diesel engine is also in the works. Displacing 800cc and including common-rail injection from Bosch and a Honeywell turbocharger, the diesel engine has been designed by German powertrain specialist FEV, the same firm that India's Mahindra reportedly contacted for help with its latest diesel hybrid engine.

We don't yet know what kind of fuel mileage the diesel would offer, but the twin cylinder gas engine standard in the Nano is good for 54 U.S. miles per gallon and the diesel should better that figure somewhat, though most likely for a slight increase in price.


[Source: The Economic Times]

A month ago, Tata Motors announced they would be entering two vehicles in the Automotive X Prize. The company's involvement with the 100 mpge challenge has now deepened as Ratan Tata, the Chairman of Tata Sons (which owns Tata Motors, the maker of the Tata Nano, among other companies) has become a member of the X Prize Foundation's Board of Trustees. The President of BT Americas, Michael Boustridge, also joined the Board. The Board and the X Prize Foundation are in charge of more than just the Progressive Automotive X Prize, as the X Prize's "Revolution through Competition" model is also trying to find new ways to get back to the moon among other endeavors. Bios of both new Board members are available after the break.

According to our list of the cheapest cars in the world, Fiat already offers the ninth least expensive car available: the Palio. It seems as if that might be the cheapest vehicle which Fiat would be interested in placing its name on, as reports are coming in which indicate that the company is considering a new brand for the further development of low-cost cars. Already, Fiat's competitor Renault has announced that it intends to continue operating in the cheap-car segment that it competes in already with the Logan. Bajaj is said to be working with Renault on its upcoming $2,500 Nano challenger.

So far, there has been no indication on whether the new brand will be a resurrection of a previous marque owned by Fiat or something completely different. Though the new low-cost vehicle would seem to be in direct competition with the Tata Nano, Fiat chief executive Sergio Marchionne indicates that the two brands, which already cooperate in other ways, might be working together on the project.

[Sources: Automotive News Europe - sub. req'd, Reuters]

Buoyed by the response to the Tata Nano (i.e., the world's cheapest car), Tata Motors Limited is ready to make the move to green. The company announced today that it will compete in the Progressive Insurance Automotive X Prize by entering two vehicles in the race. Well, Tata has signed a letter of intent to compete, which is as far as any of the 70+ teams have gotten.

In a statement put out by the X Prize foundation (pasted after the jump), Tata says they intend "to enter a pure e-drive micro car into the Alternative Class and Dominant Electric Hybrid vehicle into the Mainstream Class." We'll have to wait for more information on these vehicles, as that is literally all we have right now. Whether Tata wins or not, if they even come close, whatever lessons they learn while designing and building the entrant vehicles should be applicable to later generations of the Nano and other Tata vehicles. Considering Tata's ambitious roll-out plans, this is excellent news.

A few days ago there were rumors floating around about a new agreement between Bajaj Auto and Renault. Sure enough, the two marques have announced a partnership to build Tata Nano rival. They announced that the new vehicle that is under development, named ULC (which probably comes from Ultra Low Cost), will be put on sale in India by 2011 for about $2,500. They expect to sell 200,000 cars per year. A new 400,000 unit factory will be built in Chakan (Maharashtra state). India is the initial target market, but if the US credit markets don't get sorted out the U.S. could be looking for something like this soon too.

Bajaj is India's largest motorcycle manufacturer and Renault has already quite an experience with low-cost vehicles, with the largely successful Dacia Logan. This reopens the debate once more: Having more and more cars on the roads is not good for the planet, but who can withdraw people in developing countries right to drive cars when we've driven them before?

[Source: Nissan, Autoblog en español (Sam Abuelsamid contributed to this post)]

The Tata Nano made headlines as the world's least expensive new car and it's now facing a new challenger that's battery powered. The Ajanta Group is better known for making clocks but they also build electric scooters and bikes. The Gujarat-based Ajanta wants to get into the car business with an electric vehicle that's cheaper than the Nano. Ajanta group director Jaysukh Patel seems to think they can just transfer their electric bike technology to a car and produce 70 percent of the parts in-house, saving money. That seems a little unrealistic - even in India - unless what they are planning is closer to a neighborhood electric vehicle than a real car. For a price under $2,500 the car will almost certainly be relegated to lead acid batteries and very short range. It will be interesting to see how Ajanta's new EV compares to the Reva G-Wiz which is also built in India.

Gallery: Tata Nano: The People's Car

[Source: Times of India]

Motorcycle, scooter and moped manufacturers in India are worried. Since Tata announced their ultra-cheap Nano, the two-wheeled industry is abuzz with worry that the populace will quickly abandon their old single-track vehicles for the safety and convenience of a four-wheeler if the price points get too close. This is a rational concern, and it is exactly why Tata's created the Nano in the first place.

In an effort to persuade buyers to stick with their bikes, the major manufacturers in India, including Bajaj, Honda and Kinetic, are all working on natural gas options for their various offerings. According to this article, each of these companies has contacted Energtek, a leader in absorbed natural gas (ANG) technology for help in implementing the conversion process. The advantages to using the ANG lie primarily with price, however there are also eco-benefits to be had, as natural gas burns cleaner than other fossil-fuels. We have to wonder, though, what would stop companies like Tata from using similar technology in their low-priced automobiles.

Related:

• VIDEO: Live reveal of the $2,500 Tata Nano
• Here's the $2,500 Tata Nano, the Indian peoples car

[Source: Red Orbit]

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The Tata Nano, number one in the list of ten cheapest cars in the world, is a big hit at the Geneva Motor Show. Newspress is saying that the tiny and inexpensive Nano is drawing the biggest crowds at the show.The throngs aren't thronging just to see the car - we've seen it in pictures for a while now - but to listen for Tata chairman Ratan Tata update on details of the Jaguar/Land Rover/Tata deal. Instead, he said that the Nano would not be coming to Europe because of stricter emissions and safety standards there. We're all aware that a revamped second-generation Nano is a likely contender for European sales some time down the road.

[Source: Newspress]