Tata Motor seems to be reassessing its plan to launch the diesel version of iconic hatchback Nano in the Indian auto market. Speculations are rife that the legendary auto major might showcase this car along with a diesel engine at the Auto Expo 2014. However, rumour mill is constantly generating news that the car maker may not flag off this proposition. Chief reasons heralding to such a situation is the sudden drift in market regarding the demand for petrol cars. Both petrol and diesel variants have witnessed equal sales in recent past but at present, prospective buyers are getting more inclined towards petrol models.
Sources are surmising that Tata Motors had been working on the development of its new diesel technology since 2010 and interestingly, it is in the advanced stage of completion. Company had successfully created 2-cylinder and 3-cylinder power plants for Tata Nano. Also the car was in the testing phase and Tata Motors was vigorously attempting to bring this project to a successful completion. But market conditions have witnessed a drastic change in this span and somehow the auto maker might have to shelve this type of fuel option in Nano. Such an occurrence is believed to hamper the company's image and already, it has not recorded satisfactory sales in the last fiscal.
Experts are of a view that over the span of 1-2 years, petrol prices have inflated by a mere 4.5 per cent whereas, diesel rates have been hiked to a massive 30 per cent. Such a disproportion has lead to the rise in demand for petrol cars in domestic market. Same circumstances have been revived, which once persisted off late when petrol variant was the primary choice for any prospective buyer. It must be noted that the continually soaring price of diesel has decremented its cost-effectiveness. Sources also state that even if Tata Motors finalise the launch of Nano diesel, then after meeting all the emission norms, the car's final cost will be a bit steeper. Henceforth, placing the hatchback in a higher price bracket would not be an acute move by the auto maker.
The ongoing version of Nano is incorporated with a petrol engine. Also, the auto manufacturer recently introduced a CNG kit in this car which bears a price tag of Rs. 2.52 lakh, ex-showroom. The latter variant is already catering consumers who are in search of economical fuel options as it returns adequate fuel economy statistics as compared to its petrol sibling. Apparently, CNG prices have also been hiked twice during the past four months and government seems incapable to regulate this inflation.
It is anticipated that prices would keep on rising in the coming time as well, which leaves only petrol as a desirable option for Tata Nano followers. Reports suggest that this car is counted among top 15 sellers in the Indian market and has a long way ahead to become the most favourable model among domestic buyers. Furthermore, the company's Chairman Ratan Tata has assured to present this car in a whole new avatar, directing at its brighter future in the long run. Amidst such declaration by the company, it will be interesting to see if the company goes ahead with the launch of Tata Nano diesel or abandons the plan completely.
