Tata Nano: Cuba calling

Even as the Tata Motors is racing to keep the September deadline for the launch of the Nano, the far-away communist Cuba has started its wait for the people’s car from India.  Tata Nano, which is being touted as India’s cheapest car, has reportedly begun its quest for popularity in Cuba. This has been confirmed after Cuban minister Eduardo Escandell Amador held talks with the Tatas and the Essar Group executives to explore business opportunities. And on the business front, the Tatas too believe that Cuba hold a lot of potential for the Tata Nano.

Business reports have said that, during the next three years, Cuba would most probably increase its trade with India to $300 million on the back of enhanced cooperation in sectors like auto, power, oil and gas. Bilateral trade in 2006-07 between the two countries had stood at $27 million. Now with the demand for the yet to be launched Tata Nano too on the rise, the Cuban team’s talks with the Tatas assumes significance. It has been pointed out that the other Indian vehicles that are in great demand in Cuba are Maruti and Tata trucks.

Interestingly, the India-Cuba trade during the 1980s was over $300 million but it plumbed the depths at $50 million due to unavailability of a line of credit from New Delhi to Havana. Chna had then taken advantage of the situation by extending soft loans to Cuba and is today the largest provider of locomotives, light vehicles and buses, with trade between the two countries reaching $3 billion.

The Nano, awaiting launch, is seen as ushering in the emergence of Tata Motors on the global auto scene. It would also see India rise to the level of a a global center for small-car production. Further it would give millions of people now relegated to lesser means of transportation the chance to drive cars, says the makers.