NEW DELHI — With the flash of cameras and oohs and aahs from the crowd, an Indian company Monday launched what is billed as the world's least expensive car, six years after it was conceived and six months behind schedule.
The Nano will start at $2,200 after taxes and dealer costs, while the more expensive CX and LX models with heat, air conditioning and power brakes will go for as much as $3,800.
None of the models, made by India's giant Tata conglomerate, have air bags or anti-lock brakes. But they will meet or exceed all Indian safety standards, company officials said.
"I hope it will provide safe, affordable four-wheel transportation to families who until now have not been able to own a car," Ratan Tata, company chairman, told reporters.
Amid the applause and homegrown pride at India's accomplishments, however, some here expressed concern about the environmental impact of a "people's car" so inexpensive that it will be within reach of millions more people, further clogging the roads and polluting the air.
"At this time, when India is just beginning to motorize, it's absolutely essential that we grow differently and not become as car-centric as the rest of the world," said Anumita Roychowdhury, associate director of the Center for Science and Environment in New Delhi. "It's a natural aspiration that people want to own a car, but it's important to offer public transportation options."
The initial focus will be on the Indian market and its rising middle class, but the company plans to roll out a more expensive European version in 2011 with air bags and better emissions and safety ratings. It may also consider a model for the U.S. market.
China's Cherry QQ car sells for about $4,800 and India's Suzuki Maruti 800 for about $5,000. The least expensive U.S. car is the basic Chevrolet Aveo, with a nearly $12,000 base price. Nissan offers its subcompact Versa model in the U.S. at a base price of $9,999.
Tata Motors, which last year bought Jaguar and Land Rover, has seen its debt soar in recent months, as have carmakers around the world. To help ease its cash squeeze -- the company suffered its first loss in seven years last quarter -- it is taking sizable advance deposits.
Protests by farmers and a politician's hunger strike last fall forced the company to shutter its main Nano factory in West Bengal state, delaying the launch by half a year. Since then, the global economy has deteriorated significantly.
