Car News in India

Tata Nano will now have some of its components made in Canada. The Indian car manufacturer has awarded a contract to Samco Machinery Ltd to supply six car components.

The Tata Nano is hailed as the world’s cheapest car. Since its unveiling in January 2008, the car has opened a new market for cars in the Rs 1 Lakh ($2500) price bracket. This has triggered a race among many car makers to challenge the Nano in the ultra-cheap small car segment. However, they are far from being in ready-to-launch condition.

The Toronto based company will supply equipments for chassis components following and agreement between Samco and Tata Ryerson Ltd. The deal is worth $3 million. Tata Ryerson is also involved in the Tata Nano project and is a 50-50 joint venture between Tata Steel (India) and Ryerson Tull (USA).

Samco, which has always concentrated on operating in Canada, has for the first time chosen to partner with an Indian manufacturer. The Ontario minister for small business and entrepreneurs Harinder Thakkar said that small companies need to move out into other countries and win contracts. Samco is an example of that endeavor. Tata Ryerson has hinted that once the Nano project is through, Samco could be invited to participate in many more projects with the Tata group.

So far, Tata Motors has involved Indian companies and the UK-based Caparo group in the project. This will be the first company across the pacific to be involved in the Nano project.