Tata Nano Bangladesh Launch Delayed

Published: Monday, October 17, 2011, 14:50 [IST]

The launch of the world's cheapest car, the Tata Nano in Bangladesh has been delayed on the day of its launch after its distributor sought a price cut for the Indian small car. The Tata Nano was expected to be launched in Bangladesh on Saturday.

Nitol Motors, the exclusive Tata Motors dealer in Bangladesh said the Nano would have a starting price of 599,000 taka which is three times the value of the Nano sold in India. Bangladesh has a 132 per cent import tax on cars and this means even mall cars attract a huge price tag.

Nitol Motors has said the Nano has attracted several buyers but the high price did not result in sales. The dealer is planning to seek a price cut for the Nano. Abdul Matlab Ahmad of Nitol Motors said the Tata Nano with its fuel economy of 25kmpl would be a sure shot hit had its price been a little lower.

Fuel prices in Bangladesh have increased in the recent years making people prefer small fuel efficient cars. However the high import duty on cars has meant prices of cars remain very high. Nitol Motors has said it would get in tough with Tata Motors to discuss a price cut for the Nano.

The Tata Nano is already being exported to Nepal and Sri Lanka in Asia. Tata Motors is planning to open an overseas manufacturing facility for the Nano, possibly in Eastern Europe. The Nano has not been able to live up to expectations in India mostly due to concerns about reliability and non availability of cheap loans.

Recent instances of Nano's catching fire have also not helped the image of the India small car.