History and conception

The project to create the world's most inexpensive car began in 2003, under the Chairman of Tata Motors, Ratan Tata, inspired by the number of Indian families with two-wheeled rather than four-wheeled transport. The Nano's development has been tempered by the company's success in producing the low cost 4 wheeled Ace truck in May 2005.

Contrary to speculation that the car might be a simple four-wheeled auto rickshaw, The Times of India reported the vehicle is "a properly designed and built car". The Chairman is reported to have said, "It is not a car with plastic curtains or no roof — it's a real car."

To achieve its design parameters, Tata has refined the manufacturing process, emphasized innovation and sought new design approaches from suppliers. The car was designed at Italy's Institute of Development in Automotive Engineering — with Ratan Tata requesting certain changes, such the elimination of one of two windscreen wipers.


The Nano has 21% more interior space and an 8% smaller exterior, when compared with its closest rival, the Maruti 800. The car will come in different versions, including one standard and two deluxe variants. The deluxe version will have air conditioning, but no power steering. The car is expected to be produced in the Singur plant in West Bengal, which is under construction. The initial production target set by Tata Motors is 250,000 units per year.