Latest News by Ashok Hindocha(M-9426201999)

Will you buy Nano?
Posted in: Business
Thursday 09th, April 2009Comments(17)PrintForward

Jia Sinha

Financial AnalystTata Motors were setto accept the application forms for the world's cheapest car, the 624-ccjelly-bean shaped Nano, from Thursday in what will be the steepest booking feecharged in India for an automobile.

Over the next 17 days, prospectivebuyers can buy application forms for Rs.300 each and apply with an upfrontpayment of around Rs.95,000 - or Rs.2,999, if they wish to get it financed,company officials said.

That alone will not assure them the car, which group chairman Ratan Tata hadpromised to deliver at Rs.100,000 ($2,000) at factory gates - and which he hadmanaged to keep amid awe and admiration of the global automobile industry.

The company, which had to shift its upcoming Nano factory out of Singur in WestBengal last October after some protests over farmland acquired by the stategovernment for the project, has earmarked just 100,000 vehicles for the firstphase.

So a lottery will decide the lucky ones who will drive out the Nano - theresult of a Rs.20-billion investment, and five years of research anddevelopment by a 500-member team, which even fetched them 34 patents.

Tata Motors - part of India's largest industrial house, the $62.5-billion Tatagroup - also has on offer online bookings for the Nano, the first such optionin India. An online application will cost Rs.200.

Along with the provision to retail co-branded Nano merchandise such as watches,T-shirts and phones on the Internet, the dedicated website for the"people's car" has a section to apply online, with a secure paymentsgateway.

Apart from Tata Motor Finance, the banks associated with the Nano ventureinclude: State Bank of India (SBI) and its subsidiaries, Canara Bank,Corporation Bank, Central Bank, Indian Bank, Union Bank of India, United Bankof India, Punjab National Bank, UCO Bank, Federal Bank and ICICI Bank.

Customers can submit their application forms to their chosen bank or financier,who will submit it to SBI, which is entrusted with managing the entire bookingprocess. For those opting to pay the entire booking amount can submit theirforms directly to SBI through its 1,350 branches in 850 cities or with Tata Motorsdealers, Westside and Croma outlets.

Winners from the draw of lots would be announced 60 days after the bookingsclose April 25 and customers can drive the Nano out of showrooms from July.