Rumour: Tata Nano Diesel R.I.P.

We had reported in January that the Tata Motors could shelve the Nano Diesel. The company did not display the car at the 2014 Auto Expo, earlier this year. Now it is rumoured that Tata Motors has indeed pulled the plug on the project.

A report by Economic Times reveals that since June 2012, petrol prices have risen by 8% while diesel prices have shot up by 35%. This disproportionate rise in prices of diesel has pushed customers towards petrol cars. In this situation Tata Motors has considered it unviable to develop and launch a diesel variant of the Nano, especially one that complies with Euro-IV emission norms.

The Nano is currently priced between Rs. 1.41 lakh and Rs. 2.58 lakh. The diesel variant would have retail at a price in excess of Rs. 3 lakh, which would put it at par with larger cars like the Hyundai Eon and Chevrolet Spark.

Tata Motors was working on a Bosch-sourced direct injection common rail technology for the Nano diesel, which was expected to be powered by an 800 cc, 2-cylinder engine. This engine could be used to power some commercial vehicles at a later date.

Coming back to the Nano, an AMT-equipped variant is expected to be introduced in our market. However, at the moment there is no information regarding the car's launch date or price.

Source: ET Auto