It is a well known fact that the Nano car was the dream and most ambitious project undertaken by Ratan Tata, ex-Chairman of Tata Motors. However, his dream looks a little out of shape in the Indian auto market at present. The Tata Nano model as we know has seen a tremendous drop in sales with just 2,500 units sold in December 2012 and January this year. Therefore, a CNG and a diesel version of the Nano are expected to be seen sometime during the current year, which may help turn the tide in favour of Tata Motors.
In an attempt to revive the sales, Tata Motors has given a unique offer in March 2013, which allows one to swipe a credit card and drive out with the Nano. The whole payment can be collected as per easy monthly instalments, without any applied interest. On this new offer, Ranjit Yadav, President of the Passenger Vehicles Business Unit for Tata Motors, said, “This offer will enable customers to own a car in the fastest and hassle free manner. With the introduction of this offer, consumers get the benefit of converting the entire amount on the credit card into interest free instalment, spread over a period of 12 months and manage monthly cash flow better." The entire price would be covered in an amount of Rs. 8333 per lakh and the scheme is available across 26 cities in 75 different Tata dealerships. Tata Motors has tied up with five banks for this offer, namely ICICI, Axis, HSBC, Kotak Mahindra and Standard Chartered.
The company has offered attractive discounts and deals for the Nano in the past. There was also a limited offer scheme where one could exchange a two wheeler for the hatchback, by paying a certain amount. To lure buyers further, a special edition of the Tata Nano was launched, complete with a new stereo system, alloy wheels and body graphics. In total, extra features worth Rs. 25,000 have been fitted at no additional cost. Apart from the above mentioned, it is hoped that the new finance scheme should be able to increase demand for the vehicle.
Experts feel that upcoming diesel and CNG Nano models could be helpful in luring buyers towards the Nano. Further, the performance aspect would play an important role in shaping the car's future. Contrary to popular beliefs, Tata Motors committed an error by projecting the Nano as a 'cheap' car. This had certainly affected the fate for this model, as buyers often consider a car as a status symbol in India. Therefore, it would be nice to see the Nano being re-projected as an affordable vehicle for the masses.
