Shanghai, March 13 (Gasgoo.com) - Indian car maker Tata announced plans to display its low-cost Nano at the Beijing auto show next month, local newspaper Jinghua citing local India sources, reported today.
Tata Motor's Chairman Ratan Tata unveiled the Nano last week in Geneva Auto Show. The "cheapest car in the world" is priced at $2500, cheaper than the popular Chery QQ, which is sold at $3900 in China. The launch raises concerns over potential impact of Nano on China's automobile industry.
In a media interview last week, Ratan Tata said the company plans to export its Nano city car to Europe, South Africa and other Asian markets except China.
"China has not been seriously looked at. India is as big as China in terms of population and India is enough," he said.
Currently 50 percent auto parts used in Nano is supplied by American car and truck parts maker ArvinMeritor Inc. Chinese auto industry analysts say if Tata decides to build Nano in China, ArvinMeritor's joint venture plant with Chery is expected to provide parts for the car.
ArvinMeritor formed a joint venture with China's Chery Automobile Co in July 2007. The joint venture is expected to have total annual sales revenue of $150 million by 2010.
The Wuhu-base ArvinMeritor joint venture is expected to begin production of struts and shocks by the second half of this year.
Based in Troy, Michigan of the United States, ArvinMeritor has signed several other contracts to supply door systems to Chery. ArvinMeritor also produces parts for cars, light trucks and commercial trucks for manufacturers and the after- market.
Tata's Nano to be unveiled at Beijing Auto Show next month