World's Cheapest Car to be Made in Indonesia

The world’s cheapest car, the Nano produced by Indian carmaker Tata Motors, is likely to be manufactured in Indonesia, a report said on Monday.

The Bangkok Post reported that Indonesia had appeared to win out over Thailand as the production base for the vehicle.

The newspaper, quoting an unnamed source, said that as Indonesia had “offered more attractive incentives, Tata decided to shelve the expansion plan in Thailand.”

Reasons included Thailand’s lack of political stability and automobile tax structures.

The Post reported that Tata was hoping to produce 50,000 Nanos a year at a plant in Jakarta from 2013.

“It plans to export the cars to Thailand, Malaysia and the Philippines as it is banking on their large populations and big demand for low-cost cars.”