I never thought I'd be typing in the words "nano factory siege" into Google, but now I have. On the drive home last night, I heard a staticky report on BBC Radio about some sort of siege, starting today, at the plant that is supposed produce the world's smallest car. Since I didn't catch the whole story on the radio, I thought I'd see the the Internets can tell me. In short, it's a tricky situation, but the BBC has the details.

Apparently, because Tata Motors is one of the biggest companies in India, the opposition party in West Bengal - where the plant is located - is protesting the a move by the governing communist party. The point of contention is (I think) the thousand acres that the state seized for the factory's expansion. Tata chief Ratan Tata is threatening to move the production facility to another state if things don't calm down - and other states are saying they're more than happy to welcome him. We'll keep an eye on this, as the Nano promises to be a game-shifting vehicle wherever it is built.


[Source: BBC]

Click above image for a hi-res gallery of the Tata Nano

Tata is asking Fiat to assist in selling the Nano overseas, as an expansion of the two marques partnership in manufacturing and distributing cars, engines and commercial vehicles. Fiat's initial intentions are, however, largely directed towards bus and truck manufacturing. "We have held talks about the Nano being marketed in markets where Fiat has already a strong presence. I am open to consider a partnership," said Ratan Tata at a forum promoting cooperation between Italian and Indian companies.

Tata is also forecasting supply problems for its new microcar, which goes on sale next October. That said, high raw material and fuel prices have cut demand for vehicles in India. Between that development, the burden of the Jaguar/Land Rover acquisition, and a 31% decrease in profits, it'll be interesting to see if Tata is ultimately able to keep the Nano priced as low as planned.


[Source: Automotive News]

click above for more images of the Tata Nano

Those in emerging markets hoping to get their hands on the cheapest car in the world may soon have a few more option boxes to consider checking. Chairman Ratan Tata has said in the past that an electric-only version of the Tata Nano is likely, and now industry sources are saying that a diesel engine is also in the works. Displacing 800cc and including common-rail injection from Bosch and a Honeywell turbocharger, the diesel engine has been designed by German powertrain specialist FEV, the same firm that India's Mahindra reportedly contacted for help with its latest diesel hybrid engine.

We don't yet know what kind of fuel mileage the diesel would offer, but the twin cylinder gas engine standard in the Nano is good for 54 U.S. miles per gallon and the diesel should better that figure somewhat, though most likely for a slight increase in price.


[Source: The Economic Times]

A month ago, Tata Motors announced they would be entering two vehicles in the Automotive X Prize. The company's involvement with the 100 mpge challenge has now deepened as Ratan Tata, the Chairman of Tata Sons (which owns Tata Motors, the maker of the Tata Nano, among other companies) has become a member of the X Prize Foundation's Board of Trustees. The President of BT Americas, Michael Boustridge, also joined the Board. The Board and the X Prize Foundation are in charge of more than just the Progressive Automotive X Prize, as the X Prize's "Revolution through Competition" model is also trying to find new ways to get back to the moon among other endeavors. Bios of both new Board members are available after the break.

According to our list of the cheapest cars in the world, Fiat already offers the ninth least expensive car available: the Palio. It seems as if that might be the cheapest vehicle which Fiat would be interested in placing its name on, as reports are coming in which indicate that the company is considering a new brand for the further development of low-cost cars. Already, Fiat's competitor Renault has announced that it intends to continue operating in the cheap-car segment that it competes in already with the Logan. Bajaj is said to be working with Renault on its upcoming $2,500 Nano challenger.

So far, there has been no indication on whether the new brand will be a resurrection of a previous marque owned by Fiat or something completely different. Though the new low-cost vehicle would seem to be in direct competition with the Tata Nano, Fiat chief executive Sergio Marchionne indicates that the two brands, which already cooperate in other ways, might be working together on the project.

[Sources: Automotive News Europe - sub. req'd, Reuters]

Buoyed by the response to the Tata Nano (i.e., the world's cheapest car), Tata Motors Limited is ready to make the move to green. The company announced today that it will compete in the Progressive Insurance Automotive X Prize by entering two vehicles in the race. Well, Tata has signed a letter of intent to compete, which is as far as any of the 70+ teams have gotten.

In a statement put out by the X Prize foundation (pasted after the jump), Tata says they intend "to enter a pure e-drive micro car into the Alternative Class and Dominant Electric Hybrid vehicle into the Mainstream Class." We'll have to wait for more information on these vehicles, as that is literally all we have right now. Whether Tata wins or not, if they even come close, whatever lessons they learn while designing and building the entrant vehicles should be applicable to later generations of the Nano and other Tata vehicles. Considering Tata's ambitious roll-out plans, this is excellent news.

A few days ago there were rumors floating around about a new agreement between Bajaj Auto and Renault. Sure enough, the two marques have announced a partnership to build Tata Nano rival. They announced that the new vehicle that is under development, named ULC (which probably comes from Ultra Low Cost), will be put on sale in India by 2011 for about $2,500. They expect to sell 200,000 cars per year. A new 400,000 unit factory will be built in Chakan (Maharashtra state). India is the initial target market, but if the US credit markets don't get sorted out the U.S. could be looking for something like this soon too.

Bajaj is India's largest motorcycle manufacturer and Renault has already quite an experience with low-cost vehicles, with the largely successful Dacia Logan. This reopens the debate once more: Having more and more cars on the roads is not good for the planet, but who can withdraw people in developing countries right to drive cars when we've driven them before?

[Source: Nissan, Autoblog en español (Sam Abuelsamid contributed to this post)]

The Tata Nano made headlines as the world's least expensive new car and it's now facing a new challenger that's battery powered. The Ajanta Group is better known for making clocks but they also build electric scooters and bikes. The Gujarat-based Ajanta wants to get into the car business with an electric vehicle that's cheaper than the Nano. Ajanta group director Jaysukh Patel seems to think they can just transfer their electric bike technology to a car and produce 70 percent of the parts in-house, saving money. That seems a little unrealistic - even in India - unless what they are planning is closer to a neighborhood electric vehicle than a real car. For a price under $2,500 the car will almost certainly be relegated to lead acid batteries and very short range. It will be interesting to see how Ajanta's new EV compares to the Reva G-Wiz which is also built in India.

Gallery: Tata Nano: The People's Car

[Source: Times of India]

Motorcycle, scooter and moped manufacturers in India are worried. Since Tata announced their ultra-cheap Nano, the two-wheeled industry is abuzz with worry that the populace will quickly abandon their old single-track vehicles for the safety and convenience of a four-wheeler if the price points get too close. This is a rational concern, and it is exactly why Tata's created the Nano in the first place.

In an effort to persuade buyers to stick with their bikes, the major manufacturers in India, including Bajaj, Honda and Kinetic, are all working on natural gas options for their various offerings. According to this article, each of these companies has contacted Energtek, a leader in absorbed natural gas (ANG) technology for help in implementing the conversion process. The advantages to using the ANG lie primarily with price, however there are also eco-benefits to be had, as natural gas burns cleaner than other fossil-fuels. We have to wonder, though, what would stop companies like Tata from using similar technology in their low-priced automobiles.

Related:

• VIDEO: Live reveal of the $2,500 Tata Nano
• Here's the $2,500 Tata Nano, the Indian peoples car

[Source: Red Orbit]

click photo to enlarge

The Tata Nano, number one in the list of ten cheapest cars in the world, is a big hit at the Geneva Motor Show. Newspress is saying that the tiny and inexpensive Nano is drawing the biggest crowds at the show.The throngs aren't thronging just to see the car - we've seen it in pictures for a while now - but to listen for Tata chairman Ratan Tata update on details of the Jaguar/Land Rover/Tata deal. Instead, he said that the Nano would not be coming to Europe because of stricter emissions and safety standards there. We're all aware that a revamped second-generation Nano is a likely contender for European sales some time down the road.

[Source: Newspress]

Tata Nano: 4-door hatchback. India. $2,497.

You know already the specs: 0.6 liter, 2-cyl (non-opposed), 33 HP and a fuel economy (combined) of about 5 l/100 (47 mpg). This car is well thought out, and lots of patents have been resulted from the creation process, from the Nano's powertrain to the assembly process itself. Will this car ruin the world? Some voices say that more cars on the roads imply more pollution, which is hard to argue against. On the other hand, Tata is betting that a green sheen won't hurt. The company will offer this model with Euro III compliant emissions from the start and with Euro IV compliance in the near future.


Return to the list of the cheapest cars in the world.

After the introduction of the Tata Nano, lots of people began wondering what is going to happen when a lot of people in developing countries have enough money to afford a cheap car. While Tata tried to alleviate concerns of the Nano-boom by saying that the Nano is cleaner than most motorbikes that are running on Indian roads right now, the truth is that low-cost motoring helps developing the car industry - and pollution. If you need examples, take a look at stories like of the Fiat 500 (the old one) in Italy, the VW Beetle in Germany; the Citroën 2CV or the Renault 4CV in France or, dare I say, the Ford Model T in the U.S.

So, what might the future of cheap driving look like? Forbes went around the world and found the ten cheapest cars on the market and we've gathered up information on each of these in the links below. Although it may be bad news to have more cars sending more exhaust gases to the atmosphere, at least current technologies (when implemented) make new cars better and cleaner than cars of past decades.

So, are the cars on this list good to the world or a threat to the environment?

What follows is a list of the 10 least expensive cars in the world, ranked from most expensive to least expensive. Alternatively, you can jump straight to the car of your choice by clicking one of the thumbnails below.

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Two updates on the Tata Nano, aka the world's cheapest car.

First, the Indian minicar will have its body structure built by the Caparo Group at a plant in Singur that is next to the manufacturing plant that will build the Nano. Caparo will make 60 percent of the assemblies, and Tata will take care of the rest. The contract was finalized Friday and production will start in six months, an awfully quick turnaround.

Second, Reuters is reporting that the Nano will be coming to European market in four years. That model will be an updated version that "will meet the Euro 5 emission regulations and the crash standards in Europe," Girish Wagh, the head of Tata's compact car business to the German magazine Focus. One incredible upgrade: reducing gasoline usage from the current five liters per 100 km (47 mpg U.S.) to three (78 mpg).

Related:

• If successful, the Tata Nano will likely push up gas prices
• Videos: Ratan Tata responds to ctiticisms of the Nano's safety, emissions
• Here's the $2,500 Tata Nano, the Indian peoples car

[Source: Hindu.com, Reuters]

I'm not quite sure why I put "likely" in the headline to this post. I can't think of any scenario where the ultra-cheap Tata Nano sells millions of units in India and China and other "developing" countries but doesn't have an effect on gas prices in the rest of the world. I mean, if a million more people need to buy gas (or more gas, if they're used to scooters) to get around, that's a lot less gas that's available to the people who use it today, no?

This possibility is the subject of a CNN story that quotes oil analyst Peter Beutel as saying that, "We'll get into a situation where we'll have to compete with them for gasoline, $4, $5 a gallon, who knows how high we could go." Beutel's estimate is that $4 or $5 gallons of gasoline could come to the U.S. much sooner than 2015. Considering that the 50+mpg Nano is kind of a gateway car and that larger, thirstier vehicles will be offered to the people who outgrow the Nano, then what?

Related:

• VIDEO: Live reveal of the $2,500 Tata Nano
• Here's the $2,500 Tata Nano, the Indian peoples car

[Source: CNN via Autoblog]

click above to view more images of the Tata Nano

Tata Motors company chairman Ratan Tata officially revealed the new $2,500 Nano Thursday in New Delhi. The tiny four seat Nano will initially be offered in India later this year, but it won't be exclusive to its home market. We won't be seeing the Nano in the U.S. any time soon, but it will be exported to markets where the income levels might create some demand for such an inexpensive car. That would include places like Africa, Latin America and perhaps even Eastern Europe. You can check out a video of the reveal of the 54mpg car after the jump.

[Source: Tata Motors]