Tata Motors plans to introduce the Nano in the American market in the next few years. The small car from Tata will be redesigned to an upmarket phase for the Americans and will feature more sophistication as compared to its Indian counterpart. The prices are bound to be higher than the original Indian Nano, main reason being a bigger engine. The Nano possesses a 600cc, 2-cylinder petrol engine which gives a top speed of 105 km/h. This engine configuration seems a little less for the American market. We assume it to be between 800cc – 1000cc engine with probably an extra cylinder to suit the American speed requirements.
The other cost escalating factors are engine development compliant to the US emission norms, slight structural and design changes, more features on the inside like power steering, airbags, traction control, etc. The small car market in America is more focused on the size rather than the cost of the car. This factor, the company believes, could help in the sales of the Nano which satisfies both the conditions. Tata Motors has confirmed that the price of the American Tata Nano would be less than $ 10,000 (Rs. 5,50,000/-).
There is one thing Tata Motors is not sure about and it is the sales. The company has no sales network in the US and claims it is too premature to discuss it. But there will be heavy discussions and planning regarding the sales and they are sure to come up with a solution. Speculations are around that Tata Motors will utilize the Jaguar Land Rover dealers to sell the Nano. However, a top official of JLR, North America says there has been no talks about using their outlets for selling the Nano.
