In an interesting development recently, the launching of world’s most affordable car- India’s Tata Nano, was postponed indefinitely at the last moment in Bangladesh. This incident is a result of the concerned distributor seeking a price-cut.

As planned, Nitol Motors, Tata’s solitary Bangladeshi distributor, was due to launch the compact at a fair but high tax structures ensured the price tag for the least expensive no-frills Nano would be 599,000 taka or US$7,900 (compares to 141,000 rupees ($2,870) for base Nano in India.). At this price, a B segment can be purchased or (more surprisingly) this much money can easily purchase two top end versions of the Nano in it’s parent land.

A lot of people came to us for booking at the fair. At least 23 people confirmed their interest, but we’ve deferred launch of Nano at the last moment as we’re seeking a re-look at the price, which some say is too high.”” told Abdul Matlub Ahmad, director of Nitol Motors.

Not just the Nano but even other small cars produced by foreign companies such as Maruti are significantly much more expensive in Bangladesh as importers have to pay a whopping 132 percent of tax on every import.

Nano has the potential to become very popular in the neighboring nation as the little Tata promises to reward its owner with a very low fuel consumption.

Very much like us, Bangladesh has seen a substantial fuel price increase during the past few years coupled with the Bangladeshi government withdrawing the subsidies. Nano would have been a promising product in the Bangladeshi product had it not been plagued with the taxes and resulting high purchase price.


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