The Tata Nano was supposed to be a cheap, simple car built for the people, but so far it has caused nothing but problems for the Indian automaker.

First it was an electrical issue that caused the Nano to catch fire which was the catalyst for a recall of 70,000 Nano’s. Now a faulty starter motor that the manufacturer says needs to be replaced is plauging the Nano.

Tata says that this recall is not actually a recall at all, as it was not spurred by customer complaints, but rather by Tata engineers designing a better starter which they feel all early model Nano’s should utilize. The recall will affect over 140,000 vehicles and is the largest recall in Tata’s history.

The world’s least expensive car, the Tata Nano’s original purpose in design was to be a modern Ford Model-T, mobilizing millions of families in India.

Despite the Nano’s noble intentions, only 1,200 examples were sold in the month of September when initial projections expected a rather optimistic 20,000 vehicles per month. A new approach may be the remedy and that’s exactly what Tata hopes to achieve with its new Nano commercial.

Targeting India’s young, active, and likable college students, the ad features American idioms sprinkled throughout that frankly sound a little contrived.

The Nano boasts a passenger space increase of 21 percent. Tata also shows off the Nano’s acceleration (good for passing trucks on Indian highways) as well as ride quality and ground clearance capable of fording a spring creek. The Nano’s A/C is so strong that one buddy decides to hibernate, allowing everyone else to enjoy a popular college pastime that involves black markers and camera phones. Finally, the twisty and mountainous roads to the weekend getaway help to demonstrate Nano’s best-in-India 25 km/liter petrol mileage as well as its short turning radius.

See the commercial for yourself after the jump

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Tata Sons has named Cyrus Mistry as its next CEO, as current CEO Ratan Tata prepares to retire. The unmarried, childless Tata named Mistry as CEO of the holding company responsible for Tata’s numerous divisions, among them their automotive sector which owns Jaguar and Land Rover, along with the namesake Tata Motors brand.

“The appointment of Cyrus P. Mistry as deputy chairman of Tata Sons is a good and far-sighted choice. He has been on the board of Tata Sons since August 2006 and I have been impressed with the quality and caliber of his participation, his astute observations and his humility,” said Tata, in a statement.

Mistry’s father is Tata’s largest individual shareholder, with an 18 percent stake in the Indian conglomerate. He is currently head of another Indian corporation, the Shapoorji Pallonji group, and will assume full responsibilities in December, 2012 when Tata steps down.

[Source: Automotive News]

The world’s cheapest vehicle has just gotten a whole lot (little bit?) better, with Tata announcing a batch of upgrades for their economical Nano. The 624-cc engine now makes a ferocious 37.5-hp, giving it a max speed of 65-mph.

In addition to the performance increase, the Nano also got its suspension reworked which included a new anti-roll bar in the front and a redesigned steering mechanism. The biggest improvement though is that the Nano Standard now comes with power-assisted brakes. Prior to this refresh, power-assisted brakes were only offered on some of Nano’s more luxurious models.

On the inside, buyers have a trio of colors to choose from for interior trim – beige, black and gray while the exterior colors have expanded to a portfolio of 10 choices. Those 10 colors are worth mentioning just for their names: Pearl White, Rouge Red, Aqua Blue, Neon Rush, Serene White, Meteor Silver, Mojito Green, Papaya Orange, Sunshine Yellow and Champagne Gold.

Hopefully these will help increase Tata’s Nano sales. They originally projected (or rather, hoped) to sell around 20,000 to 25,000 vehicles a month but saw only 1,200 leave dealer lots in September. Maybe it’s not paying off to be the world’s cheapest vehicle.

Tata Motors, the owner of Jaguar Land Rover, is suffering from slumping sales as the first-quarter profits are released. Tata’s Indian passenger car sales fell and Jaguar deliveries have also decreased. Surprisingly, however, Tata’s net income rose to twenty billion rupees in the three months ending on June 30th. This is up from 19.9 billion rupees a year earlier, but misses expectations.

Tata Motors confirmed an 8.5 percent decrease in Indian passenger car sales during the quarter caused by rising interest rates. The rising interest rates reduced demand throughout the country where eighty percent of purchases are funded by loans. Jaguar sales were down twenty-seven percent in the period cause by a sparse lineup and limited presence in the booming Chinese market.

[Source: Automotive News]

General Motors has officially announced pricing for the 2012 Chevrolet Sonic. The sedan has been priced to start at $14,495 and the five-door model will start at $15,395.

At that price, the Sonic will come with a 1.8-liter four-cylinder engine producing 138-hp and 125 lb-ft of torque. The car will also come equipped with a five-speed manual transmission, 10 airbags, remote keyless entry and power locks. The automatic transmission will cost $1,070 more. A second engine option featuring a fuel-efficient turbocharged 1.4-liter four-cylinder engine and six-speed manual transmission will cost $700, and is part of the pricier LT and LTZ trims.

The Sonic’s rivals include the Ford Fiesta S sedan retailing at $13,995 and the Honda Fit hatchback will cost $15,870. The Toyota Yaris is also competing costing 13,915 and the cheapest of the pack is the Nissan Versa costing just $10,750.

Check out our first drive of the 2012 Chevrolet Sonic

Gallery: 2012 Chevrolet Sonic

India sure knows how to do small (and cute) right. So you wouldn’t normally describe a truck as “cute,” but in the case of Tata’s Magic Iris and Ace Zip, we think you’ll agree that it’s okay this one time.

Green and inexpensive, these mini trucks are designed for “deep penetration goods movement.” Made from safe steel, they come equipped with 12-inch micro tires, a turning radius of 3.5 meters, and a 611-cc water-cooled engine that puts out 11 horsepower.

To get the job done, the Ace Zip pickup truck as a payload is 600 kg. According to Tata, it also features “a sleek steering wheel, comfortable seats and a roomy cabin, ensuring that the driver has a fatigue free experience, resulting in higher productivity and a significantly superior earning opportunity for the operator.”

The Magic Iris covered truck can seat three to four people, and both trucks come with a 36,000-km or 12-month warranty.

Would you buy a Magic Iris or an Ace Zip? Let us know in the comment section below.

[Source: Inhabitat]

Jaguar Land Rover has announced that it will be spending some £400 million (approximately $640 million) on developing a new engine plant in India.

The facility, which will be located in Pune, close to existing Tata operations, will produce modular four-cylinder engines and is said to be a virtual ‘carbon copy’ of the company’s new engine plant being set up in the West Midlands, UK.

Both facilities have been conceived so that Jaguar Land Rover can replace, as quickly as possible the four-cylinder gasoline and turbo diesel engines it currently sources from Ford Motor Company, which have proven to be relatively expensive.

Jaguar says that work on the new Indian plant won’t begin until the West Midlands operation is fully up and running, but said that once operations are in full swing; both plants together will have capacity to produce as many as 500,000 engines per year, which will help satisfy growing demand; particularly in China where Jaguar Land Rover already has a local assembly operation.

As for Jaguar’s other engines, namely it’s V-6 and V-8 gas and diesel units, these will continue to be sourced from Ford at Dagenham, Essex, UK, at least for the time being.

[Source: Autocar]

Parent company Tata is serious about their British crowns. Over the next 5 years, they will inject 8.2 billion dollars into making sure that Jaguar and Land Rover are not only afloat, but good enough to beat the Germans.

A sizeable chunk of that money will go towards new equipment for the brands’ three manufacturing facilities in England. Some of it could also go towards a new manufacturing facility in China, as previously rumored. And $1.25 billion of that will go towards engine manufacturing, so Jaguar and Land Rover can finally break off ties with ex-owner Ford.

Overall, Tata plans to improve quality and introduce new, fuel-efficient engine technologies during the next five years—all the better to face Audi and BMW.

[Source: Road and Track]

The Tata Nano has had a roller coaster start to its life. It garnered great interest when it was launched as the cheapest new car in the world, costing around $2300.

That certainly helped push sales, with Tata selling 9000 units in July 2010. However, after a few vehicles caught fire and concerns over its safety became public, sales took a plunge and resulted in just 509 units sold in November.

Now it seems Tata has addressed the safety and reliability concerns for its city runabout, and along with good finance deals to tempt more people into their showrooms, Tata is now doubling production to met demand. Their hope is to sell 20,000 units per-month for the next fiscal year. Only time will tell if their plan works out.

There are no plans for a North American launch anytime soon.

[Source: Autocar]