The World's Cheapest Car

Cars haven't been $2,000 dollars for many years, but that is about to change.  Tata Motors, one of the largest companies in India, is now offering a car called the Nano for $100,000 rupees.  This converts to about $2,000 US dollars.  In addition to the world's cheapest car, Tata recently purchased Land Rover and Jaguar from Ford Motor Company last year.  Unfortunately, there have been many setbacks that are making Tata's survival very difficult.

Tata recently built a new manufacturing plant for their Nano model, but it was delayed and caused too few cars to be built.  This resulted in a loss for the company, since it needs to build nearly 350,000 vehicles to make a profit on the Nano.  By not being able to sell enough cars, they have run into problems paying off their loans for the purchase of Land Rover and Jaguar.

Once they fix these problems though, the company should be all set in India.  Car sales have not been a large portion of spending in India, but that is looking to change.  In fact, many other car companies are looking to build models aimed at the middle class in the country.  While much of the developed and powerful nations are suffering, emerging markets show great potential for sales.

We may not see Tata bring its models to our shores any time soon, but their use of smaller and cheaper cars sets a precedent for our automakers that may help our country recover.

To read more about Tata and its recent economic troubles, CLICK HERE.