Tata Tiago will not get incentives offered to Nano by Gujarat government

Tata Motors' newly-launched hatchback Tiago, manufactured at the Sanand plant in Gujarat, is unlikely to get the incentives the state government had given to the car-maker's Nano hatchback. The Sanand plant was initially dedicated to manufacturing the Nano, and its production had been incentivised by the state government because it was touted as the world's cheapest car.

"The agreement signed between the company and the state government mentioned the Nano, and a government resolution was issued with regards to the incentives offered," Business-Standard quoted a company official as saying.

The incentives included a soft loan and a cap on the amount payable to the state government on the sale of the Nano and its parts. So far the Gujarat government has given Rs. 400 crore to Rs. 450 crore to Tata Motors as per the agreement.

The Business-Standard report said Tata Motors had approached the state government in 2015 seeking extension of the benefits to other vehicles manufactured at the facility. Officials are yet to give a response to the manufacturer in this regard.

The second product from Sanand plant, the Tiago was launched April 7 with a starting price of Rs. 3.2 lakh, ex-showroom, Delhi. The Gujarat facility rolls out 150 to 200 Tiago units every day. The Tiago is offered in five variants for both petrol and diesel engines — XB, XE XM, XT XZ. The 1.2-litre three-cylinder Revotron petrol engine churns out 83.8bhp of power at 6,000rpm and 114Nm of torque at 3,500rpm, while the 1.05-litre three-cylinder Revotorq diesel engine produces 69bhp of power 4,000rpm and 140Nm of torque at 1,800-3,000rpm. Both engines come mated to a five-speed manual gearbox.