Rumour: Tata could shelve Nano diesel

Tata Motors is rumoured to be reconsidering the launch of the Nano diesel. If a report on Autocar India is to be believed, the car is not likely to make it to the Auto Expo.

The Nano diesel’s development, which began in 2010, is in the final stages. Tata Motors is said to have developed two power plants for the car – a 2-cylinder and a 3-cylinder. However, over the past eighteen months or so, the price of petrol has risen by 4.5 %, while that of diesel has gone up by 30 %. This disproportionate increase in the prices of petrol and diesel has caused the gap between the two to shrink and has resulted in customers favouring petrol cars. This change in market conditions has forced Tata Motors to rethink its strategy.

At present, the Nano can be bought with either a petrol or a bi-fuel (petrol + CNG) engine. Neither of these variants is selling in numbers that Tata Motors would have hoped for. The Nano diesel will cost significantly more than the petrol and it could be difficult for the manufacturer to convince customers to opt it, considering the Government’s decision to deregulate diesel prices. The deregulation means that diesel prices will rise by Rs. 10 per litre by May 2014.

Tata Motors will, however, launch the Nano Twist, featuring power steering on January 13, 2014. It is expected to be priced Rs. 15,000 more than the current top-of-the-line LX variant. The Twist’s ZF-sourced, electric power steering unit will make the car considerably easier to drive and park.