Tata has asked the automotive safety component maker Autoliv IFB India to develop a $10 Air bag for the Nano. If delivered this will be the world’s cheapest air bag. Just to give you an idea, the Air bags in other small cars like the Estilo start from $150, the more sophisticated one’s are offcourse costlier.

The air bags will be standard in the deluxe version of the grounds braking small car Nano. The deluxe version will also have a music system, air conditioning and alloy wheels as standard while the base variant which will start from Rs.1 lakh showroom will be a no-frills car.

German technology giant, Bosch has already developed a low cost CRDi fuel system for the Nano’s diesel variant, while Honeywell Turbo India has made a similar miniature turbo charger system for the small engine. Autoliv is a worldwide leader in automotive safety components, is understood to be working on the ultra-cheap air bags.

A Tata Motors spokesperson said: “The company is under discussion with various suppliers for such equipment. The company has not taken any decision on air bags, and, therefore, there is nothing specific to Autoliv IFB India Ltd.”

“Autoliv is the largest manufacturer of air bags with 28% market share in the world. Like other Nano suppliers, it can reinvent and minimise the manufacturing process and bring in innovative product design to meet stringent cost targets for Nano. It is banking on the large volumes envisaged for Nano. Keeping in view the global experience of Autoliv, Tata Motors has asked it to develop air bags that are compliant with worldwide safety standards,” sources said.