Admiration, surprise mark Nano's debut

New Delhi, Jan 10, 2008 (Asia Pulse Data Source via COMTEX) -- TTM | news | PowerRating | PR Charts -- Tata Motors's Nano today drew applause even from some of its rivals, who hailed the small car for its low price but raised doubts whether it will be able to retain the price tag and dent their market share.

Car market leader Maruti Suzuki India Ltd, however, confessed that the car could have "some impact" on its sales. The company has the closest competitor to Nano in Maruti 800 which costs twice as much as the Tata car.

Ruling out the possibility of putting out a direct competitor to Tata Nano, MSIL Managing Director Shinjo Nakanishi had said: "Maruti cannot make Rs one lakh car and the company engineers say it cannot be done." World's largest carmaker General Motors dubbed Tata Nano as an "exciting product" but expressed confidence that it would not lure small car customers. "I don't think it will not affect small car market but it may have an affect on the sales of two-wheelers and second-hand small cars," GM India Director and Vice President P Balendran said.

The US-based car maker also said it would not reduce the prices of its small car Spark to match Tata's price.

French company Renault, which has something similar to Tata Nano in the pipeline, said the car was cute to look at but expressed apprehensions on Tata's ability to stick to the Rs one lakh price tag.

"Tata's car is cute and he (Ratan Tata) is doing a great job. I would like to see in the coming months the retail price," Renault India Managing Director Sylvain Bilaine said.

Renault in partnership with two-wheeler Bajaj Auto Ltd, is conducting feasibility studies on a 3,000 dollar car. A prototype of Bajaj car is also on dispaly at its stall in the Auto Expo. India's second biggest carmaker Hyundai Motor, however, refused to comment on Tata's car. Utility vehicle maker Mahindra and Mahindra said the car has the potential to change the dynamics of auto industry globally. "It looks very good and by no means it looks cheap. It will change the whole dynamics of auto industry globally. It is a significant contribution to the global auto industry," M&M President (Automotive Sector) Pawan Goenka said.

India's largest two-wheeler maker Hero Honda Motors Ltd said it was confident that car could not eat into the two-wheeler market. "It's a good car hope customers like it but the car will not eat into our sales," HHML Managing Director Pawan Goenka said.

Bajaj Auto Ltd said it was possible to meet safety and emission norms even at this price. "People were critical about the emission and safety norms of a small car, but what I have understood after today's launch is that it is possible to have good safety and low-emission feature in a small car," BAL managing director Rajiv Bajaj said.

Caparo India CEO Angad Paul said the car was brilliant. "I really think it is about innovation in the way it has been built. It will serve billions." CRS Global Innovations Managing Director and strategic director to Italian auto design major Pininfarina, Roney Simon, said it was a historic moment and a proud moment for the Indians. "When history is written it (Tata Nano) will be written as a milestone," Simon said.

More News:   Market Updates | Stock Alerts | All Trading News | Stock Index