Tata Motors on June 26th, 2011, commenced the sale of world’s cheapest car Tata Nano in the Nepalese market. Tata Motors is offering Nano at an introductory price of NRS 7.98 (Rs. 500,000) for the first ten days and the delivery of these cars is slated for the end of June, 2011.
Johnny Oommen, Tata Motors’ Chief of International Business (passenger vehicles), and Siddhartha S.J.B. Rana, Executive Chairman of Sipradi, unveiled the car in Kathmandu. Sipradi apart from being the second largest company in Nepal is also Tata Motors’s exclusive dealer in the country. Sipradi will market the car through fourteen outlets across eleven cities in the country. Unlike India, where the price of Nano fluctuates in each state, the car will be offered at a single price all over Nepal. Mr. Oommen stated apart from being fuel efficient, Tata Nano is the first car to be introduced in Nepal with a four year warranty for 90,000km.
Nano which costs Rs. 105,100 in Mumbai would cost Rs. 500,000 in Nepal due to a steep tax rate aggregating to 240 percent. The tax includes 76 percent customs duty, 60 percent excise duty, 13 percent value addition tax and five percent road tax. Despite the high taxes Nano would be the cheapest car to run on the Nepalese roads.
Mr. Oommen is confident that due to the attractive pricing of the car it would be successful in drawing in potential customers like two-wheeler owners wanting to own a four-wheeler and people with small families including young couples.
Nepal is the second international market for the Nano after Sri Lanka.