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Tata Nano Diesel Project Has Been Scrapped
Tata Motors has finally decided to not go ahead with the launch of the diesel variant of the Nano small car. The Nano diesel was one among the new variants of the small city car that was being expected. The Nano diesel project has been scrapped as it proved commercially unviable for the manufacturer.
Tata Nano diesel would have been powered by India's smallest 800cc DOHC 2-cylinder diesel unit. Tata's aim was to make the Nano diesel the most fuel efficient car in the country.
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However, the cost of developing a BS IV compatible engine with direct injection common rail technology sourced from Bosch meant the Nano diesel would have cost upwards of INR 3 lakhs. A price segment that includes larger hatchbacks such as Hyundai Eon and Maruti Suzuki Alto.
At a time when the price of diesel fuel has increased by 35 percent in a year, making diesel cars less popular, particularly among small car buyers, an expensive Nano variant does not make business sense. In fact, this is the primary reason behind Tata's decision to not introduce the diesel car.
Tata Motors has till date sold about 2.5 lakh units of the Nano, far short of its target. To improve the Nano's prospects the company recently introduced the Nano Twist with power steering. Nano with automatic manual transmission (AMT) is the next big awaited announcement from the automaker.
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