Nano showroom and Nano loans

Hyderabad, July 16 (ANI): Tata Motors, India's leading auto major, has rolled out its first commercial consignment of Nano, the world's cheapest car, at Hyderabad. Residents in the Twin Cities of Hyderabad and Secunderabad had been eagerly waiting for the Tata Nano car, costing just over rupees one lakh.
They contended that this car is a boon for the middle class society.

NANO LOANS:
The Nano is set to hit the road in a matter of days. But for the close to 70,000 consumers who booked it through loans, there could be some bad news. Banks have turned cautious. Reason: the low ticket size of the loan that means higher cost of execution. Banks CNBC-TV18 spoke to said the cost of servicing a two-wheeler loan is as high as 25% and which is one reason many banks have been switching off from that segment. The ticket size for the Nano is between a two-wheeler and any other car, and the cost is working out to between 18–20%. And with the rate of interest around 10%, it is making little sense for banks to push these loans.

The bigger issue for banks is the tightening of internal norms they have been carrying out over the past few months. Several banks have been more keen to give loans only to customers of the bank. A leading PSU bank told CNBC-TV18 they are waiting for the car to be delivered before they extend the loan. Moreover, while few details were asked from consumers at the time of booking like a photo ID and residential proof, income and guarantor details are only now being sought prior to sanctioning the loan.

Bankers say many who have booked the Nano have a profile that matches that of a two-wheeler loan taker. And this is a segment from which several banks have turned away owing to higher defaults.

It is learnt that banks are in active dialogue with Tata Motors to avert a potential dispute considering the MoU signed between Tata Motors and banks stating that all loans need to be processed by July 23 else a penalty of Rs 3,000 on banks will be charged.

Moreover, banks are hoping for some financial support from Tata Motors. When contacted, Tata Motors said, "Banks will apply the same norms, including interest rates, for providing loans to Nano customers as that for their customers for any other car."
Source:moneycontrol.com

Know your Nano

After all the troubles and delays the worlds cheapest car, Tata's Nano has hit the roads! Tata Motors unveiled the car in January last year and received an overwhelming response both nationally and internationally. In Photo: The bonnet of a Tata Motors' Nano car is seen lifted at the company's plant in Pimpri, 160 km (100 miles) southeast of Mumbai, India. Engineers stripped away everything they could on Tata Nano, the $2,000 automobile designed for poor Indians, which goes on sale in India next month. The car is 10.2 feet (3.1 meters) long, 4.9 feet (1.5 meters) wide, and 5.6 feet (1.7 meters) high, and gets an impressive 55.5 miles to the gallon (23.6 kilometers per liter). Tata Motors says it emits 12 percent less carbon dioxide than two-wheelers made in India. The engine of the car is situated at the rear of the car.
Tata has rolled out 50 cars for now from it's Pantnagar factory in Uttranchal. The land disputes at its planned site in West Bengal and a subsequent transfer of its manufacturing facility to Sanand near Ahmedabad, in Gujarat, resulted in delaying the project by over six months. The bookings were opened in April this year. In Photos: Tata Group Chairman Ratan Tata, right, speaks as Gujarat state Chief Minister Narendra Modi looks on during a press conference after the signing of an agreement between the state government and Tata Motors, in Gandhinagar. The Nano, billed as the world's cheapest car, has found a new home in the Western state of Gujarat, after weeks of violent farmer protests forced Tata Motors to shutter its $350 million Nano factory in West Bengal.
Tata Motors has kept its promise of delivering the car to its first one lakh customers at the ex-showroom price of Rs 100, 000. In Photos: Tata Sons Chairman, Ratan Tata poses alongside the Tata Nano, at its launch in Mumbai, India. Tata Motors launched its snub-nosed, US$2,000 Nano, in Mumbai, a vehicle meant to put car ownership within reach of millions of the world's poor. The Nano, starting at about 100,000 rupees ($1,980), is 10.2 feet (3.1 meters) long, has one windshield wiper, a 623cc rear engine, and a diminutive trunk, according to the company's Web site.