Tata Nano Sales Rose by 1,136% in December

In an effort to boost sales of its US$2,900 Nano micro car, India's Tata extended the warranty and offered easier financing in December, while it also launched a new advertising campaign that included a TV spot.

It turns out that this was a smart move, as sales of the Nano spiked reaching 5,784 units, which represents a 1,136% increase over the 509 units the company shifted a month earlier. This is still below the 9,000 monthly sales record achieved in July, but it seems that the Nano is back with a vengeance for 2011.

The warranty has been extended to four years or 60,000 km (37,282 miles) and clients can opt for a US$2 monthly maintenance option, which, coupled with the opening of new sales points and the upcoming nationwide distribution plan, should keep the momentum going.

“Tata Motors is now focusing on the Nano because its reputation is riding on it”, said Umesh Karne, a Mumbai-based analyst with BRICS Securities Ltd., who has a “buy” rating on the stock. “Measures such as easy financing and the maintenance offer have reassured customers”.

Last but not least, the Indian maker also promised to retrofit all Nanos with revamped exhaust and electrical systems in order to prevent more cars bursting into flames.

By Csaba Daradics

Source: Bloomberg

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VIDEO: Tata Tries to Boost Nano Sales with New Ad

As previously reported, Tata Nano sales in India have dropped significantly in the past few month, with just 509 customers opting for the US $2,900 micro car, down from 9,000 in July. It seems that Indian buyers have higher aspirations and are moving away from the Nano, as the nation’s market is booming. Reliability issues and a few spontaneously combusting units didn’t help sales either.

To mend the situation, the automaker has extended the car’s warranty and launched a new TV ad, depicting the Nano as the most lovable thing of Earth. Hit the jump to watch the commercial.

By Csaba Daradics

Source: Youtube , Via: Indian Autos Blog

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India's Car Market Booming yet Customers Show Little Love for Tata Nano

Sometimes being cheap and cheerful just isn’t enough. Production delays, land debates and questions over occupant safety are killing the Tata Nano faster than an unexplained engine fire. India’s people car is struggling in spite of the nation’s booming car market and a low asking price of just US$2,900, half of what its nearest rival costs.

With economic growth at a staggering 9% per annum and a 22% year-to-date increase in car sales, Tata must have felt it was onto a sure thing. Things started out good, with 200,000 advanced orders for the sub-subcompact before its 2009 launch.

However, sales have been flagging these past four months with the Indian carmaker selling just 509 Nano’s in November, down from 9,000 in July.

India’s bestselling car is the US$6,200 Maruti Suzuki Alto. With a bigger engine, more spacious interior and longer track record than the Nano, many buyers prefer the Alto in spite the fact it costs more than twice as much. With 30,000 units sold in November, the numbers seems to agree. Even the US$7,800 Hyundai i10 is outselling Tata’s golden child.

Hormazd Sorabjee, editor of Autocar India, explains why the Nano is falling behind its more pricey competitors:

"The bottom of the pyramid continues to be where the action is. But the aspirations of people are moving up. People want to jump into something more substantial.”

At the time of its launch, the Nano was unavailable and dealerships and many customers were turned off by the inability to inspect / test drive the vehicle before placing an order.

It’s uncertain whether the Nano’s poor domestic sales will affect Tata’s move into foreign markets such as Europe and South America.

The four door, five seat Nano is the branchild of Tata Group Chairman Ratan Tata. His brief was for a car that cost just 100,000 rupees (US$2,200) and would appeal to those who previously could only afford a motorcycle.

However, the forced closure of one of Tata’s factories in West Bengal and the subsequent relocation caused delivery delays and the spontaneous combustion of several Nano’s in the past have dampened the Nano’s reputation.

Darius Lam, an analyst at J.D. Power & Associates, remarks on the latter:

“The company has just mishandled the whole thing. First, the company said it was no big deal. Then, it was just some foreign objects.”

Like many in the automotive community, Mr. Lam does not believe Tata has done enough to investigate the cause of the fires and reassuring the public that it’s been properly addressed.

To count the flagging sales, Tata is allowing buyers to take immediate delivery of their Nano from the showroom and opening new locations in smaller cities. The car’s warranty has been extended from 18 months to four years, while the company is stressing the Nano’s power and durability to assuage the public’s grievances.

A company insider has stated that Nano sales are back on the rise. Company spokesman Debasis Ray elaborates:

“As we began open sales, our learning was that, even though the Tata Nano is affordable for thousands of customers who do not own a car, it is still a significant decision to enter the four-wheeler category.”

It is believed that many of the Nano’s 71,000 owners are happy with their car, citing its performance, 41 mpg fuel economy and spacious interior as the main reasons for purchasing it other than the low price.

Even so, many analysts believe that unless the brand makes further strives to improve safety and public perception, the Nano will still lag behind its Korean and Japanese competitors in the Indian market.

By Tristan Hankins

Via: New York Times

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Piaggio NT3 Concept targets the TATA Nano

At this week's 2010 Milan Motorcycle Show (EICMA), Piaggio presented the NT3 Concept, a three-seater four-wheel mini that could become the TATA Nano's biggest competitor in emerging markets like India or Vietnam.

Despite its small size (it only measures 2.4 meters in length), the NT3 is a highly versatile vehicle, with multiple cabin configurations, also made possible by the center driving position. It uses a spaceframe architecture with crashbox, meaning that it's safer than it looks. Power comes from internal combustion engines or a hybrid powertrain.

The smallest one has a capacity of 200 cc and it was created with economy in mind. It is followed by a more powerful 300 cc variant and a hybrid, which combines the more potent conventional engine with an electric motor.

The two can work together and propel the NT3 to a top speed of 80 km/h (50 mph). In "electric only mode" the car's top speed is 30 km/h or 19 mph.

Piaggio says that the NT3 can do more than 30 km with 1 liter of fuel – 3.33 lt/100 km or 71 US mpg –, though it's not known with which engine. In any case, the Italian manufacturer promises low operating costs and emissions.

The Italian maker, best known for its Vespa scooters, said the NT3 could enter the market in the next three years, but hasn't made any final decisions yet.

By Csaba Daradics

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Tata Nano Review

Good things come in small packages
No single car by the Tata Motors car manufacturers has been talked about as much as the Tata Nano. Even before its release we had the people talking about it and eagerly anticipating it’s released. Much to the deliverance of the public it was finally revealed at the 9th annual auto expo in the first half of january 2008 in the city of New Delhi. This is a highly democratic car as the promotional tag line suggests it to “the people’s car”. Tata Motors have claimed it to be the world’s cheapest car. With a price of Rs 100,000 the standard version of the Nano costs just a little bit more than a decent motorbike.

Classified as being part of the new breed of 21st century cars the Nano symbolizes the new age philosophy of smaller, lighter and cheaper cars. The Tata Nano is without a doubt the leader in terms of causing a world wide trend of producing smaller cars. The interesting name actually has the very essence of the concept behind the car in its meaning. Nano is derived from the Greek word nanos which means dwarf. The word also means “small” in Gujrati which happens to be the mother tongue of the Tata owners.

The project was initiated in the year 2003 to construct a small sized car in the range of one hundred thousand rupees. This was done after considering the fact that India had a considerable number of families that were being forced to drive around on two wheelers due to the lack of finance for a four wheeler. This was the basic motive behind creating the Nano which was also encouraged with the company’s successful attempt at producing a low cost four wheel truck in 2005.

Many people were skeptical of the new Nano as they believed that it was not possible to create a good quality four wheel in the budget that was administered by Tata Motors. The results were quite the contrary to the negative public perception as the Nano turned out to be a properly designed and built car. Tata Motors once again collaborated with I.D.E.A of Italy to produce the smallest and most affordable four wheel ride. Together they have managed to integrate such features as the rear mounted engine to maximize interior space. The Nano sports a 623 cc rear engine and is rear wheel drive as well. The car is highly fuel efficient and it complies with the international emission standards as well.

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Tata Nano Review

Good things come in small packagesNo single car by the Tata Motors car manufacturers has been talked about as much as the Tata Nano. Even before its release we had the people talking about it and eagerly anticipating it’s released. Much to the deliverance of the public it was finally revealed at the 9th annual auto expo in the first half of january 2008 in the city of New Delhi. This is a highly

Read More