Tata Motors is all set to deliver the first Tata Nano, the world's cheapest car, to its first customer today.
The company has started to dispatch the cars to its dealers across the country. It is expected that Mr. Ratan Tata, chairman of the company, will hand over the keys to the first Nano customer.
Tata Nano was showcased in the January last year at Delhi Auto Show by Mr. Ratan Tata. But the consumer bookings started only in April after the project was delayed due to land disputes at the planned site in West Bengal.
Tata Nano had received over 2,06,703 bookings from April 9 to April 25. From this, Tata had selected over one lakh to become the owners of Nano.
Tata Motors, which is currently manufacturing the Nano from its interim facility at Pantnagar, has a production capacity to manufacture 50,000 cars a year, which it plans to raise to 2.5 lakh units once its new plant at Sanand in Gujarat, starts in December.
"The Tata Nano is unlikely to contribute significantly to Tata Motors' revenues in 2009-10, as the initial volumes are low. However, as the booking amount is higher for the top-end variant, the margins will be better. A lot will depend on product performance and how fast the Sanand capacity comes up," said an analyst from a Mumbai-based brokerage firm.
Tata Nano is available in three variants and the base variant of the car received 20% bookings, the CX variant got 30%, and LX, which is the top end model, got the highest of 50% bookings. Nano will be available only for its first one lakh at the price tag of Rs 1,00,000.