Nano or entry diesel hatch?

As everyone knows, the Tata Nano is the most affordable car in the world today. So how affordable is it in terms of cost of ownership when compared with entry-level diesels? We try to find out:

The MY2012 Nano with revised gear ratios has an increased fuel efficiency of 25kmpl as per the ARAI cycle. Only a couple of diesel hatchbacks (Tata Indica eV2 and the Chevrolet Beat) match this fuel efficiency.

The Nano not only beats these cars in fuel efficiency but it also has an advantage in maintenance. Spares are cheaper than those for diesel cars. This also helps reduce servicing costs.

Bangalore resident Dinesh Raj said his Nano gives him 19-20 kmpl in city driving and around 24 kmpl on highways.

“I feel buying a petrol car is any day a better decision as diesel car costs much more initially. I am also very happy with the comfort of driving in city because of its small turning radius,” he said.

Ditto Hemang Antani of Ahmedabad. “My car’s mileage means my cost of ownership is very low and helps in saving a lot of money in the long term. It is definitely cheaper than a diesel car in that context,” he said.

There are no quality issues either with Tata Motors having ironed out everything over the course of the last two years. Today, the car’s interior can go shoulder to shoulder with many cars in the A and A+ segments.

Tata has managed to reduce the cost of the product by lean manufacturing processes without compromising on space and comfort, which are the Nano’s biggest USPs.

Here’s the simple math: with an on-road price of less than Rs1.75 lakh, the Nano will save you Rs4 lakh compared with an entry-level diesel. Back-of-the-envelope calculations show that to recover that cost difference, you will have to drive the diesel car 50-60,000 km every year. Makes sense, doesn’t it?