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On September 29, 2009, The Economist magazine named Ratan Tata, the chairman of Tata Motors, the winner of this year’s “Business Process Innovation Award” for successfully developing the world’s cheapest vehicle — the Nano car. In the explanation, The Economist said that Tata “changed the way Indian companies conduct business” and applauded the company for creating a safe and affordable vehicle for families in emerging markets. “Innovative ideas are everywhere,” said Mark Langley, executive vice-president and COO of the Project Management Institute. “Tata Motors’ Nano challenges the way automobiles have been made and marketed for a hundred years,” explains Mark Langley, VP of the Project Management Institute. “The application of project management is testimony to Tata Group’s record of refining its processes, from boardroom to manufacturing floor, and promises transformation of an industry facing a billion new customers over the next generation.”

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This September, Tata Motors (India’s biggest auto manufacturer) unveiled the cheapest car to hit the road. The Nano has been referred to by the company as “the People’s Car,” which will cost motorists just 1 Pakistani lakh (or $2,500 in US dollars). Even though commodity prices have risen significantly, Tata has kept its four-year promise to consumers by keeping the cost to them unbelievably low. The four-door sedan seats four people, runs off a two-cylinder gas engine in the rear, gets 50 miles to the gallon and features an all-sheet metal body that looks very much like the Mercedes Smart Car. Drivers who are used to creature comforts like air conditioning, power steering, antilock brakes, electric windows and rear seatbelts may be disappointed to learn that this gem of nanoscience carries none of those things. Some of these Nano accessories — like air conditioning — may be available at an extra cost, but leaving out some of the fanciness is part of the allure with this simple vehicle.

As with any vehicle, the Nano car will have several model varieties. The Tata Motors’ base model will have no extras but will be the cheapest of any car on the market. The Deluxe Nano CX includes air conditioning; the Luxury Nano LX has air conditioning, power windows, fabric seats and power locks for 49,000 Rupees more than the base model. The Nano Europa will have a larger body, bigger 3-cylinder engine, anti-lock brakes and will meet all European crash/emission standards. In the future, proposals include creating a new Nano hybrid, a diesel engine version, an engine that runs off compressed air and an electric Nano.

Strangely enough “The People’s Car” is fetching a pretty penny on the used car market already. Tata Motors has 200,000 customers signed up and waiting for the next batch of cars to be manufactured. Through a lottery, they chose the first 100,000 lucky buyers, although it will take until the end of 2010 to get all the vehicles delivered. In the meantime, the rich and famous want to be the first on the block to have this car — at any cost. The Drive website from Australia reports that some consumers are paying a 30% markup for a secondhand Nano car. “They tend to be very rich people who want the Nano for the snob value because it’s new in the market,” said Arif Fazulbhoy, director of Fazulbhoy Motors.

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Beth Kaminski is the co-author of Curing Your Anxiety And Panic Attacks which detailed treat anxiety attacks as well as tips on the various panic disorder medications

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