MUMBAI: The launch of Tata Motors’ Rs 1 lakh car saw the auto major’s shares surge 4 per cent, but soon gave away some gains.
At 12:25 pm, Tata Motors shares were up 1.38 per cent at Rs 781.05, coming off a high of Rs 802.30 with volume traded at 5,92,215 against two-week average of 2,85,995 shares.
The small car named ‘Nano’, a hatchback with a 624cc engine, is priced at about half that of the current cheapest car in the market, and is a sharp contrast to the luxury Jaguar and Land Rover brands that Tata is negotiating to buy from Ford Motor Company.
Nano, which is smaller than Maruti 800 in terms of size, is 21 per cent larger internally, affirmed Chairman Ratan Tata. The car is expected to give an average mileage of 20 kilometers per litre.
He also dismissed fears the cheap car would herald more congestion and pollution, arguing the car would be better and far safer than most motorcycles on Indian roads.
Nano will be available in standard and deluxe variants. The standard car would be priced at Rs 1 lakh only for the dealers excluding value added tax.
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