Ratan Tata, Chairman of Tata Group, has expressed his intentions to revitalise the marketing and promotion strategy of the company’s world-renowned car, Tata Nano. Reportedly, the project is very dear to the Chairman and has been termed as his most ambitious initiative till date. Despite its humble pricing, the world's cheapest car failed to strike the perfect chords with the sentiments of Indian buyers. The demand for the car declined after three of its models caught fire, rendering the public in a pickle.
In an interview with Bloomberg India, Tata said, “The Nano is something I would love to make successful because I don't think it's exploited its full potential right now. There has to be another push to make Nano what it can be.”
Slated to retire in December this year, Tata is aiming to inspire Indians to take the car seriously by ensuring them that the model is perfectly safe and secure. Apparently, Tata is aspiring to hang his boots on a good note by upping the Nano game and revoking the stigma attached with the car's image among the Indian minds set. As per the company statements, Cyrus Mistry will be the announced successor of Tata, who will further control the Nano project and take it even beyond what Ratan Tata had originally foreseen.
Currently, Nano comprise 10 per cent share in the small car segment with sales of 74,527 units in the last fiscal. In July 2012, Tata Motor sold 5,485 units of their iconic model with its demand rising to 68 per cent against the sales recorded in corresponding period in 2011. However, the sales of the model are still far off the company’s advanced manufacturing facility in Sanand, Gujarat, which has the potential to roll out 20,000 units a month.
Expressing his views on the Nano's future, Umesh Karne, an analyst at BRICS Securities, Mumbai commented, “Tata will have to refresh the Nano with new features as competitors such as Maruti and Hyundai are also stepping up their efforts. If they manage to introduce new features and maintain a competitive price, I think it’s possible to resurrect the Nano.”
Karne also highlighted the fact that the company was not completely ready with the promotional campaigning and dealerships at the time when it started delivering Nano in 2009. According to him if Tata manages to revise the promotional model and its shortcomings, Nano might see a boost in its sales this year.
