Tata Nano goes global via Sri Lanka

• Indian giant reaffirms faith and success in the tiny neighbouring market which is its biggest
• 500 units of world’s cheapest car but dubbed as engineering marvel” shipped to Sri Lanka; Tata says good feedback from India’s first 100,000 customers
• Dimo plans to sell 1,000 units a month in the medium term; Recent tariff revision slaps 110% extra on landed cost
  
   

Indian giant Tata on Saturday picked Sri Lanka for its global commercial launch of the world’s cheapest car Nano reaffirming faith and confidence in the tiny neighbouring market which remains its biggest outside home.

The launch of Nano in Sri Lanka follows the success of having sold over 100,000 units in India since its debut two years ago.

Tata, established in 1945 and now a global player in automobiles with brands such as Jaguar and Land Rover under its portfolio also picked Sri Lanka as its first overseas market for its commercial vehicles way back in 1961.

“Sri Lanka was our first overseas market and it remains our most important export market,” Tata Motors Managing Director and Group CEO Carl Peter Forster told journalists in Colombo at the Nano’s launch which coincided with the golden jubilee of Indian giant’s partnership with DIMO in Sri Lanka.

In the commercial vehicle market of Sri Lanka, Tata commands over 60% share whilst the dominance in the overall vehicles market is over 40%.

DIMO Chairman Ranjith Pandithage said around 500 Nano’s have been imported initially whilst price tag of a standard Nano is Rs. 925,000 (inclusive of VAT) and the luxury version costing Rs. 1.1 million.

Dubbed as the world’s cheapest car and an automobile engineering marvel, Nano in Sri Lanka faces a 110% taxes and duties on the land cost. Following April upward revision in taxes and duties Nano now costs around Rs. 100,000 more. In Chennai, Tamil Nadu the standard version is INRs. 150,000 or SLRs. 375,000. Nano was commercially launched in India on 23 March 2009 with a price tag of around $ 3,000.

Despite the recent hike in taxes Pandithage was upbeat. He said Nano remains “unique” and “there is no competition.”

He told the Daily FT that Dimo hopes to sell about 1,000 units per month in the medium term as Sri Lankans will immensely benefit from a stylish, feature-rich small car in Nano.

Reaffirming Nano as an “engineering marvel” Forester said Nano has been cleverly engineered to give the people the lowest total operating cost in addition to its advantages in fuel economy and space efficiency with the engine placed at the rear. According to Tata, Nano offers an incredibly spacious passenger compartment which can comfortably seat four adults. Nano has won 200 patent and design awards as well.

Forester also said that Nano will play a major role in the next phase of growth of Tata’s international business.

In a statement issued at the launch Tata Motors India Operations Managing Director P.M. Telang said: “The stupendous international response to the unveiling of the Tata Nano in 2008 establishes that customers across the world were awaiting such a car. With the launch in Sri Lanka today we begin that journey. We have already formulated plans for its introduction in several countries, to be implemented over the next few years.”

World’s cheapest

“We are getting good enquiries. Those who pay Rs 100,000 today can have the car in two weeks after making the full payment,” a company spokesman said.

He said the car was available in red, yellow, blue, white and silver and the higher-end model with air conditioning will cost 1.1 million rupees, just 40,000 rupees (Rs 18,000 Indian rupees) less than the 800-cc Maruti’s price in Sri Lanka.

Maruti is the market leader in small cars in Sri Lanka. The price of a Nano in Sri Lanka is far higher than what it is in India, where the basic model costs just under USD 3,000, because of high import duties and local sales tax, a company official said.

However, he said he was hopeful of selling the first consignment of 500 Nano cars that have already arrived in the island.

Sri Lanka slashed car duties in June last year, but raised them again in April this year after a heavy drain of foreign exchange to import cars.

The Colombo port was seeing 500 cars unloaded each day in recent months before the duty was raised again in April.

World’s cheapest car Nano is expensive in Sri Lanka

Press Trust of India: COLOMBO: Tata Motors on Sunday began selling the world’s cheapest car, the Nano, in Sri Lanka at a price tag nearly three times higher than the cost in the Indian market.

Diesel and Motor Engineering (Dimo), the local agent for Tata, said they began accepting bookings for the Nano with a price tag of 925,000 Sri Lankan rupees (USD 8,486) for a basic stripped down version.

“We are getting good enquiries. Those who pay Rs 100,000 today can have the car in two weeks after making the full payment,” a company spokesman said.

He said the car was available in red, yellow, blue, white and silver and the higher-end model with air conditioning will cost 1.1 million rupees, just 40,000 rupees (Rs 18,000 Indian rupees) less than the 800-cc Maruti’s price in Sri Lanka.

Maruti is the market leader in small cars in Sri Lanka. The price of a Nano in Sri Lanka is far higher than what it is in India, where the basic model costs just under USD 3,000, because of high import duties and local sales tax, a company official said.

However, he said he was hopeful of selling the first consignment of 500 Nano cars that have already arrived in the island.

Sri Lanka slashed car duties in June last year, but raised them again in April this year after a heavy drain of foreign exchange to import cars.

The Colombo port was seeing 500 cars unloaded each day in recent months before the duty was raised again in April.