Design

Ratan Tata, the Chairman of Tata Motors, began development of the world's cheapest production car in 2003,[36] inspired by the number of Indian families with two-wheeled rather than four-wheeled vehicles.[37] The Nano's development has been tempered[clarification needed] by the company's success in producing the low cost 4 wheeled Ace truck in May 2005.[36]

Contrary to speculation that the car might be a simple four-wheeled auto rickshaw, The Times of India reported the vehicle is "a properly designed and built car".[38] The Chairman is reported to have said, "It is not a car with plastic curtains or no roof — it's a real car."[36]

To achieve its design goals, Tata refined the manufacturing process, emphasized innovation and sought new design approaches from suppliers.[38] The car was designed at Italy's Institute of Development in Automotive Engineering — with Ratan Tata requesting certain changes, such as the elimination of one of two windscreen wipers.[36] Some components of the Nano are made in Germany by Bosch, such as Fuel Injection, brake system, Value Motronic ECU, ABS and other technologies.[39]

The Nano has 21% more interior space (albeit mostly as headroom, due to its tall stance) and an 8% smaller exterior compared to its closest rival, the Maruti 800. Tata offered the car in three versions: the basic Tata Nano Std; the Cx; and the Lx. The Cx and Lx versions each have air conditioning, power windows, and central locking. Tata has set its initial production target at 250,000 units per year