2012 Tata Nano America Buying Advice

The 2012 Tata Nano America has a simple, one-piece dashboard with scooped-out parcel shelves flanking a minimalist instrument and control pod

The obvious tip is, don't be dazzled by the expected low-low price. After all, the Nano was created for emerging markets with different design priorities than minicars from big-name companies like the Chevrolet Spark, Ford Ka, and Toyota or Scion iQ. This means even a deluxe Nano, however affordable, will not be every American's cup of Tetley (Tata Group owns that British tea company, among many others). So insist on the most thorough test drive you can get--and sample the competition too.

Of course, it remains to be seen how well the Nano will hold up in American driving conditions, especially as India is a relative newcomer to car making with little consumer experience beyond its own borders. While Jaguar Land Rover can help the Tata brand achieve the sort of reliability, durability, and build quality that will be essential for success in Europe and North America, getting there may take some time. The same applies to Tata's setting up a suitable U.S. dealer network. With all this, the Nano America could well be delayed until model-year 2013 or even later. We'll keep you posted.

It's worth noting that Tata Motors is suffering in the economic downturn just like other automakers. It's far healthier than most, but it did post a $54 million net loss in the fourth quarter of 2008, the first in seven years. Moreover, Tata Motors faces a $3.4 billion funding gap this year, including repayment on a $2.3 billion bridge loan secured to buy JLR. As if all that weren't enough, Tata had to abandon the $292 million Nano factory in Singur, West Bengal, after farmers there staged violent protests over the forced sale of their land for the 1,000-acre site. This not only delayed the Nano launch by seven months but forced Tata to spend $389 million for a new plant in the more hospitable city of Sanand in Gujarat province. That facility is set to open in 2010 with installed capacity of 250,000 Nanos and can turn out up to a half-million per year. But even that might not be enough to satisfy global demand, which could be another reason for a delayed U.S. launch.

Meantime, basic Nanos are being produced on a makeshift basis at Tata plants in Pune (poo-NAY, "India's Detroit") and Pantnagar, but only 40,000-50,000 are expected to be built through the end of 2009, according to Indian newspaper The Financial Express. Despite all this and a recent downgrade in debt rating, most analysts expect Tata Motors to get through the recession in good shape, helped in no small way by the humble but globally appealing Nano.

2012 Tata Nano America Release Date: There's no timetable yet, but Mr. Tata's statements imply the Nano America would start sale by the end of 2011, assuming no more surprise setbacks.

2012 Tata Nano America First Test Drive: We're in the dark here too, but U.S. media previews could be held in late 2011, depending on when the American version is ready.

2012 Tata Nano America Prices: As noted, several sources predict a U.S. base price of around $7,000, but that's only a best guess based on current conditions. The final figure could be more or less depending on any interim changes in materials and shipping