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

Tata Motors is rumoured to be reconsidering the launch of the Nano diesel. If a report on Autocar India is to be believed, the car is not likely to make it to the Auto Expo.

The Nano diesel’s development, which began in 2010, is in the final stages. Tata Motors is said to have developed two power plants for the car – a 2-cylinder and a 3-cylinder. However, over the past eighteen months or so, the price of petrol has risen by 4.5 %, while that of diesel has gone up by 30 %. This disproportionate increase in the prices of petrol and diesel has caused the gap between the two to shrink and has resulted in customers favouring petrol cars. This change in market conditions has forced Tata Motors to rethink its strategy.

At present, the Nano can be bought with either a petrol or a bi-fuel (petrol + CNG) engine. Neither of these variants is selling in numbers that Tata Motors would have hoped for. The Nano diesel will cost significantly more than the petrol and it could be difficult for the manufacturer to convince customers to opt it, considering the Government’s decision to deregulate diesel prices. The deregulation means that diesel prices will rise by Rs. 10 per litre by May 2014.

Tata Motors will, however, launch the Nano Twist, featuring power steering on January 13, 2014. It is expected to be priced Rs. 15,000 more than the current top-of-the-line LX variant. The Twist’s ZF-sourced, electric power steering unit will make the car considerably easier to drive and park.

Tata Motors is gearing up to take the wraps off the Nano diesel at the Auto Expo in February 2014. While there is no official word on the date of its launch, the Auto Expo, which is the country’s largest automotive exhibition, will serve as a good platform to show the car to the public. 

The diesel powered Nano is likely to be powered by an 800 cc, 2-cylinder engine with a Garrett turbo charger and common rail direct injection system developed by Bosch. Outputting around 40 bhp, it is said to return approximately 35 km/l, making the Nano diesel one of the most frugal cars in the country. Fuel efficiency will be the car’s ultimate selling point.

With the petrol and CNG powered versions of the Nano not having lived up to Tata’s expectation in terms of sales, the company will be pinning its hopes on the diesel version to turn things around. 

Apart from the Nano diesel, Tata Motors will unveil a new hatchback and a sub-4 metre sedan from its “Project Falcon” range. Based on the X1 platform, the cars are likely to carry over most of their parts from the Vista and Manza. Engine options for the Falcon twins will include a Fiat-sourced 1.3-litre diesel and a 1.2-litre turbo petrol.

Source: Car Dekho

Mr Karl Slym, the managing director of Tata Motors, speaking to Reuters, has announced that the Nano Diesel is under development and that the car will be launched by the end of this financial year, broadly hinting that the launch will happen by March 2014. Currently, the Nano is available with only one fuel option, namely petrol. 

A CNG-Petrol dual fuel variant of the car, which was showcased at the HORIZONEXT strategy announcement event, will be launched in the coming months. The CNG powered version of the car will serve as a cost effective option with lower running costs, besting that of the petrol engined model.

An obvious limitation of the CNG powered Nano involves the availability of CNG dispensing stations, which are concentrated in a handful of Indian cities. So, a CNG powered version will suit only those Indian cities where CNG dispensing infrastructure exists. Naturally, the case for a diesel powered Nano exists. 

With the arrival of the Nano Diesel in early 2014, the car will be available in three fuel variants, giving the buyer a flurry of options to pick and choose from. The diesel version of the Nano has been spotted testing in and around Pune, the location of Tata Motors' engineering and research facility at Pimpri.

The car is said to feature an 800 cc, common rail-turbo diesel engine that is likely to output about 40 Bhp of peak power. The Nano Diesel's engine aggregates, such as the CRDI system and the turbo charger, have been developed by global parts makers such as Robert Bosch and Garrett (A Honeywell enterprise).

The diesel powered Nano's biggest selling point will be its fuel efficiency, touted to be over 35 Kmpl. The car is also likely to feature other improvements such as a open-able hatch, revised styling and even perhaps a power steering. The Nano Diesel is expected to be priced about 50,000 rupees higher than equivalent petrol variants. 

Challenges to the Nano Diesel do exist. Total deregulation of diesel prices by the Indian government, along with elimination of fuel subsidies, could make diesel as expensive as petrol. In such a scenario, the additional premium demanded by Tata Motors for the diesel powered Nano might not be appealing to prospective buyers. A tight rope walk for Tata Motors seems likely.

After numerous refreshes and price cuts, the Tata Nano is yet to find traction at the hustings. This has prompted Tata Motors to go in for an all new strategy to sell the car. From being the world's least priced car seeking to put India on four wheels, the Tata Nano will now see a major re-branding that could take the car higher up the value chain. The re-branding exercise will see the Nano being pitched at the youth, as a "smart city car". 

To make the car more appealing to this car buyer demography, who value convenience, style and fuel efficiency, Tata Motors plans to add more features to the Nano. The power steering, a long missing feature that buyers have been demanding, is likely to make the cut during the revamp. Mr Cyrus Mistry, the Chairman of Tata Motors,  made a mention of this to share holders during the company's 68th annual general meeting. The other feature to be added to the revamped Nano is the open-able hatch lid. 

In fact, test mules of the diesel powered Nano have clearly showcased the presence of a conventional hatch lid on the car. The Nano, in diesel guise, also gets new front and rear bumpers, and a re-routed exhaust. The car will be powered by a 800cc turbo diesel engine that is expected to output about 40 Bhp. The big selling point of the Tata Nano Diesel will be its fuel efficiency, touted to be well north of 35 Kmpl. The revamped Nano will get styling upgrades on the outside, to make it look more appealing. 

Tata Motors will also launch the much-delayed CNG variant of the hatchback. After being showcased at the 2012 Indian Auto Expo, the CNG powered Nano, dubbed the E-MAX, was unveiled earlier this year, during Tata Motors Horizonext strategy showcase. The CNG powered Nano will offer diesel-like running costs at a price that's marginally higher than that of a petrol powered Nano. The Nano CNG is expected to be launched within the next couple of months.