Tata Motors may soon be launching an all-new version of it’s 'people's car', the Tata Nano. Ratan Tata has said to the media that the Nano is currently going through several changes, to make it a much better product for the Indian conditions. He feels that a significant amount of time and money was lost in incorrect marketing strategies and plant problems. After the initial hype, almost one and a half years were lost due to the problems at Singur, West Bengal and the shifting of manufacturing to Sanand, Gujarat. This led to disappointments among many people, who had been waiting eagerly for the new car.
In terms of branding and marketing, the vehicle may have been wrongly projected as a 'cheap' car, which would have driven away many customers, since a car is often regarded as a status symbol in India. The number of dealerships were also considerably less, which prevented the company from targeting rural customers. According to Ratan Tata, the new look of the Nano will help to attract rural customers, by having exclusive dealerships for them.
However, despite a few tough months in the beginning, the Nano has also been well received by many customers. 2.2 lakh Nano have been sold across the country, since its launch 4 years ago. In addition to domestic sales, the vehicle has also been exported to the countries like Sri Lanka and Nepal.
Tata Motors Chairman Ratan Tata says that the Nano needs an image makeover, which is why the design of the car is being modified. The Nano has not been able to achieve the status as envisioned by Tata. Many small issues have been bogging the vehicle from achieving its true potential, as per him.
After the initial mistakes due to which sales momentum was lost, the marketing team has been offering many freebies such as attractive loans, four years warranty and interesting ad campaigns. Tata's problems were also further aggravated by vehicles catching fire in different parts of India. Though all the faulty parts were replaced and additional safety features were installed at no additional cost for Nano owners, the damage seemed to have been already inflicted on the brand.
The revamped version of the Nano should be more flamboyant than the current base version. It has been realised that Indians do not want 'cheap' cars, but would like to purchase vehicles that offer 'value for money'. It might be a great deed to fit the Nano with a diesel engine, which would truly set a benchmark in the fuel efficiency department. Let's hope that the Nano has a much better track record during its second innings at home.
