TataMotors on Tuesday said its people's car, Nano, will be priced between Rs 1.34lakh and Rs 1.85 lakh (ex-showroom Mumbai), although the car's claim to famewas its Rs 1 lakh tag.

While announcing the prices, Tata group Chairman RatanTata said the company has kept the ex-factory (Pantnagar) price of the basemodel of the Nano at Rs 1 lakh.

Yet, customers will have to pay far higher than Rs 1 lakh to own the car. TheNano will have a price tag ranging between Rs 1.12 lakh and Rs 1.70 lakh forthe three variants at showrooms at Pantnagar, where it is produced.

In Mumbai, the the Bharat Stage III compliant Nano will cost between Rs 1.34lakh and Rs 1.85 lakh (ex-showroom) and in the National Capital, it will have aprice range of Rs 1.23 lakh to Rs 1.72 lakh (ex-showroom) for the threedifferent variants.

"Six years ago we made a decision, a decision to conceive and produce morecars that would give the people of India, who rode with their families ontwo-wheelers, an affordable all-weather transport at a price that is withintheir reach," Tata said.

To book the Nano, customers will have to shell out Rs95,000 for the base model BS II and III, Rs 1.2 lakh for the mid-range modeland Rs 1.4 lakh for the top end all across the country.

"We hope this day we will usher in a new form of transport," Tata hadearlier told reporters at a conference here to mark the launch of thesnub-nosed car that was unveiled in January last year.

He said the endeavour was never to build the cheapest car but to provide anaffordable form of transportation to the average Indian family.Tata, however, hastened to add that "we made a promise (of a Rs 1,00,000car) and that we've kept the promise".

According to market research firm Crisil, Nano's price reduces the cost ofownership of an entry-level car by 30 per cent and to below three times thecost of owning a motorcycle.

"This will make the car affordable to an additional 14 million families,including a section of 58 million two- wheeler owners," Crisil said.