Tata Motors began the Nano design with a comprehensive study of the potential customer their needs, wants, and purchasing ability. In a unique pricing approach, the company set the base price at $2,500 which was the price Tata thought its customers could pay, and worked backward into the design. The base price at introduction was about $2,000 U.S.; however, it quickly went up to $2,300, and by 2012, the price was about $2,600. A typical 2012 Nano model is presented in Exhibit 8. The base Nano model had a 625cc two-cylinder engine which produced a top speed of 65 miles per