Project Nano has seen significant investment rounds from Tata Motors and it was launched with a perspective to get the market stirred. On this note, the compact car did manage to get the buzz, but failed when it really came down to sales. Falling too short on laid down expectations, the company has been trying its best to revive sales of this compact hatchback. Earlier, there was news that Tata Motors is not too happy with its decision to initially get Nano rolling in the market as the cheapest car. In fact, former Tata Group Chairman Ratan Tata had reportedly admitted that marketing the compact hatchback as the cheapest car was indeed a mistake.
Evidently, the auto company is now planning to make Nano "more aspirational rather than spartanly utilitarian". Ratan Tata did say that the company looks forward to relaunch the car in Indian passenger car market. The new strategy involves launching several new models like Twist, Nano Plus and Nano Diesel. Here, the company aims to incorporate additional features like an integrated music system with Bluetooth connectivity and electronic power steering in new models of Nano. It will help the company to shift the image from cheapest car to a smart city car. According to market experts, re-branding the car will help company to lure more customers, especially first time buyers. A company official reportedly said, “We should see a tipping point in the next six months' time.”
The company's new approach is more practical than its earliest move. It will help to advertise the compact car effectively in the Indian market with realistic sales forecasts. The auto maker is planning to portray Nano as a possible solution for easy driving in city and of getting over traffic jams and parking problems. The ad campaign launched by the company has already got 3.7 lakh 'likes' on Facebook. However, on the contrary, branding expert Jack Trout, in an interview last month, suggested that it would be better for Tata Motors to kill the brand Nano. He said, “My view is, I would kill the brand...The damage is done there. The most telling thing they did is calling it a 'cheap car'.” Trout also mentioned that people don't want a 'cheap car'. Taking about the Indian market, he indicated that buyers show a progressive automotive ownership. Normally, masses move progressively from cycles to scooters and then to cars.
