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Tata Signals Pricier Nano After ‘Cheapest Car’ Tag Flops

Can a car be too cheap? Tata Motors Ltd. is hinting at pricier models based on the Nano, the $2,000 compact it introduced with great fanfare in 2008. The reason: Few buyers wanted a vehicle that was primarily pitched as an inexpensive alternative to a motor scooter.

Though the Nano captured global attention, Indians never really warmed to the tiny, egg-shaped car. The company has sold just 229,157 Nanos since deliveries began in July 2009, and sales in March were off by 86 percent from a year earlier.