Nano may prove ‘goddess of wealth’ for Tata Motors

Tata Nano, the world’s cheapest car, may prove goddess of wealth for Tata Motors. The reason is the dipping commodity prices and excise duty. Coming down of excise duty on smaller cars from 12 to 8 per cent is another reason. For Tata Motors it is a dream come true because the booking will generate a corpus of Rs 5,000 crore besides Rs 95,000 an interest free deposit of the booking. Besides it the company will not have to pay tax on auto components as the supplier would already have done so. Auto analyst with Booz & Company, Vikas Sehgal said that Tata Motors would need to sell number of Tata Nano to break even. However, by leveraging the Tata Nano platform, it could make high-end cars for overseas markets. With several variants, it could be a highly profitable product for the company.

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