The impact of soaring prices is affecting one big dream project, know which one? That is Ratan Tata to get his ambitious Nano on the roads, affordable to the common man at a price tag of Rs. 1 lakh. But right now, this price tag bit, the most important factor about the Nano, seems to coming under a cloud.

With costs going up all around, naturally, even this project was bound to get into rough weather. The costs of steel, tyres, and the like, plus the higher costs of borrowing, for the company and for the buyers aiming to seek loans, has also gone up sharply.

The rising crude oil price, which is also making people rethink about owning a car today is expected to hit demand. Its new plant for manufacturing Nano in Singur, West Bengal, is expected to go into operation in the last quarter of the current calendar year. And if all these factors do not subside, then surely there is no doubt that to a large extent, the demand would indeed get affected.

Tata Motors has hinged its entire future working right now on the Nano. The hope is that high volumes of the Nano would dramatically change the company’s sagging market share, reach and visibility. Now that’s too big a responsibility on a small car!
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