Luxury marques head to India

Senior executives at the British prestige brands have already been told they will be sold off to Tata, which has just produced the world's cheapest car — the Nano — with a sub-$3000 price tag.

CEO of the Ford Motor Company, Alan Mulally, says Tata is the final player in the sell-off plan, which was hatched to give the Blue Oval brand much-needed cash to invest in its troubled North American operations.

“We are focused on Tata and I anticipate something in the first quarter,” Mulally says.

But are there any other contenders in the sale?

“We are focused on Tata right now,” he says. There is a gentle sense of irony in the timing of the latest announcement given that it was only last week that Tata launched India's 'people's car' — a $2835 four-seater — with great fanfare.

With Ford's decision on the sale of Jaguar and Land Rover imminent, Tata Motors chairman Ratan Tata unveiled the budget hatch at the New Delhi motor show.

However, critics say although the Nano will bring motoring to the newly affluent Indian masses, it may also clog the sub-continent's roads and create an environmental nightmare.

The cute four-door is very basic, has a high ground clearance for India's rough roads and a simple rear-drive 24kW 623cc two-cylinder petrol engine under the rear seats.

This powers the car to a top speed of 105km/h while delivering 5.0L per 100km. Tata says it has plans to add hybrid and diesel versions.

It will be available in three models, the Standard, Deluxe and Luxury and will be sold in left- and right-hand-drive.

The Standard is basic, missing a radio, passenger side mirror, wheel covers, central locking and airconditioning. Buyers who want these luxuries must opt for the Nano Deluxe or Luxury. Despite being just 3100mm long, 1500mm wide and 1600mm high — significantly shorter and narrower than a Mini Cooper — Tata claims the Nano meets Indian crash legislation but can be strengthened for other markets that have tougher impact standards.