Harnodi | 2011 Tata Nano CX - Driving the World's Cheapest Car | People love the idea of super-cheap transportation. Two generations ago, Volkswagen  captured the world's attention with the Beetle (known originally as "The People's Car"), but when people finally drove the rear-engined VW, they realized it was more than just a cheap car – it was remarkably fun to drive. India's Tata Motors picked up on the people's car idea several years ago. Motorbikes and pedal bikes are the go-to transportation options for millions in India, which presented an opportunity. But with the average price of a new car in the U.S. hovering around $30,000, an inconceivable sum in the developing world, Tata would have to do something very different. The tiny Nano was the result. It's currently on sale in India starting at around $2,500. That sound you hear is over a billion people cheering because they can now envision themselves owning transportation with a roof that they don't have to pedal.


The pint-sized sedan wowed crowds at its New Delhi introduction in 2008 and Tata began exporting the Nano throughout the developing world. Speculation swirled that the company would eventually target the U.S. after the car was put on display at the 2010 Detroit Auto Show, but do we really want it here?
Given enough smooth, straight road, the Nano might have hit 65 mph, but driving that fast isn't the little car's forte. It's designed for congested city streets where speeds rarely top 45 mph. Even at these lower speeds, the Nano still feels floppy and sloppy. Around corners the softly-sprung suspension wallows like a rowboat in angry beach surf. Even slight road imperfections or tiny steering inputs cause the body to roll and flex with a sickening queasiness. Confidence inspiring it was not.

Compared to motorcycles, motorized tricycles and bicycles, the Nano is a real car that's actually affordable to the rapidly growing middle class in developing countries. It surrounds occupants in steel, puts a solid roof over their heads, and even provides a climate-controlled interior. And with an estimated EPA fuel economy of 52 mpg city and 62 mpg highway, the Nano is economical to operate. This car is a huge step forward in terms of transportation for a lot of people who've never had the opportunity.


That said, the Nano is clearly not ready for U.S. shores. Americans who want transportation for $2,500 have an endless supply of used vehicles to choose from, nearly all of which would outperform the Nano while providing more safety. Representatives from Tata Motors freely admit that to enter the U.S. market, the Nano would require crush zones, airbags, anti-lock brakes and electronic stability control, which would dramatically increase the vehicle's cost. Estimates of $8,000 have been tossed about – so much for ultra-cheap transportation in America.

However, looking ahead a few years, Tata shouldn't be counted out. It recently purchased Jaguar and Land Rover from Ford Motor Company, so it has access to top-notch automotive technology. Additionally, development of the Nano is supported by an already huge and advanced manufacturing operation. So there's the potential – and a desire – for a push into North America. And if anybody can bring the world a modern people's car, Tata can.