Tata Motors is set to cut down its costs on its latest model, Nano on all accounts, including its advertising and publicity. The company shall launch the new model without much fanfare or mass publicity. Rising inflation as well as exponential growth in the input costs has made the Company cut down on its expenditure on media and publicity. Tata Motors is in line with most of the car manufacturers which have cut down their costs on advertising and publicity budgets.
![""]("https://imgct2.aeplcdn.com/img/500/news/nano_4.jpg"?q=75)
“Manufacturing costs are increasing and OEMs can do little about it, so cutting overheads is the logical thing. It is not happening for the first time, even in the past auto manufacturers have cut down on advertising and marketing costs whenever there have been price pressures,” says Ashutosh Goel, Edelweiss auto analyst.
However, spokesperson from Tata Motors refused to comment on the same stating that it is too soon to speak about the advertising of the car in July which is slated for a launch at the end of the year. The original advertising budget was expected to be 8-10 percent of the final price of the product; however, it may change now owing to the change in the economical scenario in the country.
Tata Motors is already facing pressures from its vendors for the input costs but still plans to launch the car at its originally promised price of Rs. 1 lakh. However, it may hike the prices after the first launch.
