Tata has just announced that manufacturing of the Tata Nano or the Worlds Cheapest Car shall begin in the 3rd quarter of 2008 and everything wa on schedule. This came as a relief to investors who were worried about the protests by farmers at Singur (the place acquired for producing the Nano) who were against the car plant and had promised to disrupt operations.

Tata Motors has also started developing new variants of Nano to meet environmental and fuel price challenges, as also market requirements of several international markets. No further details about this were given, but we already know about Tatas deal with MDI regarding the Tata Air car.

What we are more interested in knowing is that considering the most recent figures from India showed an inflation rate of more than 10% , is Tata still holding on to their promise of a 1 Lakh Rupee car? (approx. 2200 USD).

Readers may also recall that Tata Motors has recently purchased the Jaguar and Land Rover brands as well.