The bookings for the much-awaited world's cheapest car 'Nano' have commenced on Thursday. To facilitate easy financing and booking of the car for prospective customers, Tata Motors entered into agreements with 18 preferred banks and non-banking finance companies.
While base model of the car 'Tata Nano Std' is priced at Rs.95, 000, the other variants 'Tata Nano CX' and ' Tata Nano LX' are available at Rs.1, 20,000 and Rs.1, 40,000 respectively. Customers can either pay the entire booking amount themselves or seek financing of the booking amount. The booking amount ranges between Rs.2, 850 and Rs.4, 110 if they wish to get it financed.
The sale of application forms, which began on April 1, is getting a very encouraging response and hence has been extended to 30,000 locations in about 1,000 cities across the country.
Until April 25,2009, prospective buyers can buy application forms through Tata Motors' Passenger Car dealerships, State Bank of India and its branches, its subsidiaries and associates, other preferred financiers, and outlets of Westside, Croma, 'World of Titan' and Tata Indicom exclusive stores. The forms are available at a price of Rs.300 each. An online application will cost Rs.200.
Within 60 days of the closure of bookings, Tata Motors will process and announce the allotment of 100,000 cars in the first phase of deliveries, through a computerized random selection procedure. These 1-lakh allotments will be price protected for the launch prices till delivery of the cars but the booking amounts will not bear any interest for the customers.
Post the successful allotment of the bookings, customers can convert their booking loan into a retail auto loan for the Tata Nano at very attractive rates with the preferred financiers. Tata Motors has also entered into agreements with five insurance companies to offer comprehensive insurance, under the 'Tata Motors Insurance' banner, for the Tata Nano at a rate of 2.76% of the ex-showroom price of the car.
Unsuccessful applicants, who do not get allotment in the first phase, can retain their booking deposit and earn interest, effective from the date of announcement of allotment of the second phase, at a rate of 8.5% for retention period between one year to two year and 8.75% for a retention period of more than 2 years. Allotment of retainees will be simultaneously communicated along with the allotment of the first 100,000 cars.
Tata Motors categorically stated that there are no problems with the production of the Tata Nano. As announced by the company earlier, deliveries of the Tata Nano will commence from July 2009.
The first set of cars is being manufactured at Pantnagar in Uttarakhand and Pune in Maharashtra. Reports suggest that the Pantnagar facility can at best roll out 5,000 cars a month. Production would be put on fast track once the Sanand plant is commissioned. During 2010-11, the Greenfield plant at Sanand in Gujarat is expected to produce 150,000 cars, which will go up to over 250,000 units and 500,000 units eventually on full capacity of the plant.
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