The Nano is burning rubber
It’s the Little Engine That Could.
Tata announced today, May 5, that it has 203,000 booked, fully paid orders for the Nano, its small uber car — bringing the company, India’s largest vehicle maker, a $500 million cash infusion.
Seventy percent of the cars were financed and the rest were paid out in cash.
The tiny Nano will hit the streets later this summer, further clogging the arteries that are India’s roads.
But that $500 million is not all bankable income — yet. The 203,000 orders are double what Tata can build in its initial production run. So the big question now is whether the company can in fact meet its obligations on the supply side.
All 203,000 customers who placed orders will go into a lottery to choose the first 100,000 customers. These lucky Nano pioneers will get their cars by the end of June or early July.
Those not part of the first rollout can either cancel their order, or keep the cash advance they paid with the company to earn 8.5 percent interest for the first year.
So before Tata goes on a joyride with its $500 million, it’s got some cars to crank out.
Read more about the Nano: