World's cheapest car may not survive 2019

Source: Xinhua | 2018-07-25

Indian automaker Tata Motors may stop selling the "world's cheapest car" Nano by 2019, local media reported.

The current Nano "can not continue beyond 2019," the largest carmaker in India said, adding that the decade-old Nano may need fresh investments to survive, according to the New Delhi-based financial daily Mint.

A recent regulatory filing suggested that only one unit of Nano was produced in June compared to 275 in the same month of 2017. For domestic sales, the number has fallen from 167 units from a year ago to only three in June.

When Nano was first unveiled in 2008, it branded itself as the "people's car" at an average price of 2,500 U.S. dollars. But the vehicle only hit the market one year later following land acquisition protests by farmers.

The delayed launch of Nano as well as subsequent reports of its tendency to catch fire dampened buyers' willingness. The sales of Nano have seen a drastic decease since 2013, against India's burgeoning car market.

Analysts say Nano's major initial selling point as the world's cheapest car might also be problematic. Commitment to a low price has made it difficult for Tata to include many new features or enhance Nano's performance. Meanwhile, the fact that people regard cars not just as transportation tools but also symbols of social status has discouraged some from opting for a brand known for being the cheapest.