A Hard Outer Shell
One big surprise is the Nano has an all-steel body. Many automotive analysts predicted the car’s outer panels would be colored, injection-molded plastics, to eliminate the cost of a paint job. Instead, the Nano uses a simple welded-steel platform and steel body panels.
Another rumored cost-cutting measure was that Tata would follow the lead of Lotus Cars and use an aluminum-extrusion frame held together by industrial-strength adhesives to reduce weight and cost. But no. The Nano employs normal welding techniques.
Size Matters
At a little more than ten feet long, the Nano is nearly 20 percent smaller than the next smallest car sold in India, the Maruti 800. However, the Nano also manages to have 20 percent more interior space than the Maruti. Less weight and fewer parts mean less raw material and lower cost.
The Engine: Smaller Is Cheaper
As simple as that sounds, it couldn’t be truer when it comes to cars. The Nano’s light curb weight allowed Tata’s engineers to use a much smaller engine while still achieving performance acceptable to drivers in both congested urban areas and quiet rural markets. The Nano has a rear-mounted, 623 cc two-cylinder engine. Ultimate power is only 32 horsepower, and the top speed is said to be around 50 miles per hour.
The Transmission
What happened to the continuously variable automatic transmission? The fact that the Nano has arrived with a four-speed manual transmission was a minor shock. A CVT is compact, simple, and makes excellent use of available engine power. Those are important points when producing a small car with limited horsepower. Our guess is the CVT automatic could appear in the near future and for a slight premium over the base model.
Plenty of Patents
Much has been made of Tata’s 32 patents pending for the Nano. Yet during a news conference at the New Delhi Auto Expo, Ratan Tata pointed out none of these is revolutionary or represents earth-shaking technology. He said most relate to rather mundane items such as the two-cylinder engine’s balancer shaft, and how the gears were cut in the transmission.
Plants and Partners
There is no escaping the importance of low labor costs in Nano’s $2,500 base price. But Tata Motors’ new plant in Singur, West Bengal, is far from completion and has not been without controversy. Many farmers continue to complain they were forced off their land to make way for the new factory. Barring any further delays, the Singur plant should be churning out Nanos toward the latter half of 2008 and reach a production capacity of 350,000 units per year.
Ratan Tata does not rule out the use of satellite plants around the world - most likely in Africa, the Middle East and Southeast Asia. Tata Motors has also ensured that parts vendors are located close to the Singur plant. The Hindustan Times reports tough competition forced the parts suppliers to keep their prices down, and this has helped keep the Nano’s price to the promised “1-lakh” ($2,500) level.
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