Tata Motors looking to increase sales of Nano with foray into the rural market

Tata Motors had found itself in a soup right after the launch of the Tata Nano. The car was sent out into the market as ‘Cheapest Car in the World’ tag attached to it. But somehow that didn’t rope in too many customers, even in India, where the price of the products largely dictates purchase decision. Amidst a lot of hullabaloo the Tata Nano came out from its factories in Gujarat expectant of a fast influx into their cash registers, but dismal sales registered corresponded to average collection of revenues. The plans to sell a car for just one lakh backfired!

From its nascent stage the Tata Nano has met with a number of hurdles. From the controversy of displacing Bengal farmers for factories, to major drawbacks in design and large scale recalls for alterations, the Nano has seen it all! And now the car makers are seeking a different method, a new strategy plan that is all set to get their most prized possession out of the woods. The engineers and developers had been burning the candle at both ends to meet with the requirements of the disappointed customers while keeping in mind the pricing. And finally it seems the research has yielded dividends and the Tata Nano seems to be ready for round two!

Tata Motors looking to increase sales of Nano with foray into the rural market

Tata Motors is diversifying its base to reach out to the people in the far flung regions, who perhaps may be more inspired with the ‘Cheapest Car of the World’ slogan than that of the city dwellers. The plans are to campaign and promote their product in the semi urban and rural areas of the country.

It seems the Tata Motors has now got its act together and has plugged those loopholes. After months of damage control, the company has brought out its old dog with new tricks.  A CNG variant of the same was introduced at the 2012 Auto Expo. They have plans to put the CNG powered small car into production to further their car. The CNG tank provides a fuel efficient and cleaner option compared to the alternatives.

But the best throw of the dice hasn’t been the revamped model at the Auto Expo, but the down payment on the vehicle. Tata Motor has kept the down payment at just Rs.15000 which allows average Indian’s to go back home sitting behind the wheels. The company believes that given the small down payment anyone who has intentions of buying the car, shouldn’t have any problems affording it.

The Nano base is expanding and branching out to all corners of India – setting up showrooms, campaigning and advertising their product in a manner that Tata has never done before. Recently, VP of Tata Motors, MR. R.Ramakrishna inaugurated dealerships in Secundrabad and Hyderabad.  In his statement during the inauguration, he said that the company is looking to diversifying its business further. Moreover as a thumping challenge thrown down at the competitors, he announced that they wouldn’t increase prices.

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