The World's Cheapest Car – $2,500!

You may have heard the buzz in the media this past week about the newest car on the market in India. It’s called the Nano and is manufactured by TATA motors. For more information on the car, you can read this link from Forbes.com. It also includes a list of the world’s cheapest cars. FYI: none of them are available to us. :(

tatanano.jpgNonetheless, the car (in it’s most basic form) costs $2,500! No air conditioning, and not many frills at all. But consider that many families in India travel on a single scooter (Husband, wife and children!) which is not that safe or pleasant – so being able to travel in an enclosed mode of transportation for such a price can really make a difference to many families.

This is not a car guy’s car obviously, but there is that eco-cool factor in that the total environmental footprint is low (materials required to manufacture and close to 50mpg). With the price of gas and consumerism the way it is, sometimes I wonder if it wouldn’t be better to trade in my current car for something plain, basic, simple and CHEAP like this!

It is interesting to note the price of commodities (i.e. steel) can change the price of this car quite easily – margins are quite low… 

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Preet Banerjee
Preet Banerjee
...is an independent consultant to the financial services industry and a personal finance commentator. You can learn more about Preet at his personal website and you can click here to follow him on Twitter.
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