Podcast:World's cheapest car goes on sale!

I have just listened to the BBC's podcast about how car companies deal with recession.India's Tata Motors will launch its extra-cheap 10 feet (3 metres) long Nano car in Mumbai on Monday, selling for 100,000 rupees or $1,979 (£1,366).As we can compare to other prices,we can conclude that this price is amazingly low.So that of course maybe the quality is low as well.But this is the good way to keep working in terms of recession.

People have to get used to low quality cars because of high unemployment and also low income of people.And also,if people will buy those products..it also may help recession to slow down!It will enable poorer citizens in developing countries to move to four wheels for the first time.The four-door five-seater car has a 33bhp, 624cc engine at the rear. It has no airbags, air conditioning, radio, or power steering.It may not be enough to revive Tata Motors - hit by debt and falling sales. The firm made a 2.63bn rupees loss for the October to December quarter.

What about the production issues?

It has also hit difficulty in its quest to refinance the remaining $2bn of its $3bn loan taken out to buy the Jaguar and Land Rover brands from Ford Motor in June.

The carmaker has been hit by the global downturn, which has knocked the spending power of the Indian economy and also made it harder for people to get loans to buy new cars.

This is the big chance for small company car brands to develop and grow because car consumers don't need expensive and luxury cars now.Maybe in consumers' mind,they just need a transport to move to go to work and cover them form rain and snow.

In addition, the launch has come six months late - it was due in October 2008 - following a row about where the car should be built.Tata pulled out of its factory in West Bengal in a row over land acquired from farmers, and instead moved production to the western state of Gujarat.The new factory will not be ready for another year and until then Tata is to make a reduced number of Nanos at its other Indian factories.Even if Tata can sell 250,000 models a year, it will add only 3% to the firm's revenues, says Vaishali Jajoo, auto analyst at Mumbai's Angel Broking.

And this is the manager's budget about the loss and profit of these new very cheap cars:That doesn't make a significant difference to the top line," he said. "And for the bottom line, it will take five to six years to break even."

So that means,even these new cheapest cars are not growing,it's still not a big loss to the company in the short term!