NEW DELHI — India's Tata Motors this week unveiled its much anticipated $2,500 car, an ultra-cheap price tag that brings car ownership into the reach of tens of millions of people.
But critics worry the car could overwhelm the country's roads and create an environmental nightmare.
Company Chairman Ratan Tata, introducing the Nano on Thursday during India's main auto show, drove onto a stage in a white version of the tiny four-door subcompact, his head nearly touching the roof.
With a snub nose and a sloping roof, the world's cheapest car can fit five people — if they squeeze. And the basic version is spare: there's no radio, no passenger-side mirror and only one windshield wiper. If you want air conditioning to cope with India's brutal summers, you need to get the deluxe version.
While the price has created a buzz, critics say the Nano could lead to possibly millions more automobiles hitting already clogged Indian roads, adding to mounting air and noise pollution problems. Others have said Tata Motors will have to sacrifice quality and safety to meet the target price.
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The chairman, though, insists the car will meet safety standards and pollute even less than motorcycles, passing domestic and European emission standards and averaging about 50 miles per gallon.
For now, the car will be sold only in India, but Tata Motors has said it eventually hopes to export it.
The Nano could become the basis for other similar super-cheap models in developing markets worldwide.
The basic model will sell for 100,000 rupees — $2,500 — but analysts estimate that customers could pay 20 percent to 30 percent more than that to cover taxes, delivery and other charges.
The company has said it expects the car to revolutionize the auto industry, and analysts believe the Nano may force other manufacturers to lower their own pricing. French automaker Renault SA and its Japanese partner, Nissan Motor Co., are trying to determine if they can sell a compact car for less than $3,000.