The world's cheapest car gets a little more expensive

Tata, makers of the Nano, the world's cheapest car, have announced it is going to have to raise the price of the snub-nosed four-door vehicle as it plans to ramp up production.

NEW DELHI // The maker of the Nano, the world's cheapest car, announced last week it was going to have to raise the price of the snub-nosed four-door vehicle as it plans to ramp up production. Launched in 2009 with a price tag as low as 123,000 rupees (Dh9,600) by Tata Motors, the car is aimed at India's aspiring middle classes, many of whom currently travel on two-wheelers. A spokesman for Tata Motors told AFP the price for the Nano would have to increase for new customers by three to four per cent. "It is a very nominal increase given the rise in raw material costs," the spokesman said, asking not to be named in line with company policy. Tata Motors said the company would keep the price unchanged for the first 100,000 Nano customers as promised when the car was first displayed in 2008. As a result of production problems, Tata has so far delivered a less-than-expected 45,000 Nanos to customers.