Huge order bank for Tata Nano

The world's cheapest car -- Tata's thimble-sized Nano -- only just hit the market in India, but it's already proving a runaway success.

The Indian carmaking conglomerate (which recently announced its plans to begin marketing its Jaguar and Land Rover premium brands in India -- more here http://www.carsales.com.au/news/2009/prestige-and-luxury/jaguar/xj/new-product-new-market-for-jaguar-land-rover-15016) has received a mammoth 203,000 orders for the bargain-basement Nano, more than doubling the initial production target.

The orders are reported to be worth 25 billion rupees ($680m), but the company has announced it will only be able to deliver 100,000 cars by the end of 2010. Deliveries start in July.

Would-be Nano owners needed to stake their claim by pre-ordering their vehicles before an April 25 deadline, with the successful buyers being decided by a lottery.

The success of the Nano is indicative not only of the sound buying proposition the egg-shaped hatchback represents, it's also proof of the strength of the Indian car market, which continues to grow -- in stark contrast to shrinking demand in other world markets.

According to reports, the Nano bookings represent about 17 per cent of the 1.22 million passenger cars sold in India during the just-concluded fiscal year.

It's a true people's car as the base-model Nano costs just 100,000 rupees ($2725), while the 'deluxe' range-topper is priced at 185,000 rupees ($5025).

Recession or no recession, half of the orders placed were for the deluxe Nano, which comes with air-conditioning and electric windows. Only 20 per cent of the orders were for the entry-level model.

"Tata Motors places on record its gratitude to the people of India for according such a warm welcome to the Tata Nano," said the company, which hopes the cheap and cheerful offering will encourage millions of Indians to trade up from their motorcycles and scooters.

Buyers who do not succeed in the lottery but who still want a car will be paid interest on their deposit, while those who drop out of the scheme will have their money refunded.