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Tata Nano bounces back

Mon, 03 Jan 2011 00:00:00 -0800

Tata Nano Sales recovered well in December

The Tata Nano was going to be the car that changed the world. Not since the Model T brought motoring to the masses was there a car that was going to change the game so drastically, with a list price in India of just £1750 and plans to bring the Tata Nano to Europe with a sub £5k tag, the Nano was going to be a revolution.

Things started well, with Tata having to organise a lottery to allocate the Nano to buyers, such was the demand. But then things started to go a bit pear-shaped. Tata stuck up the price of the Nano by 20%, there were reports of Nano’s doing a 458 (that’s catching fire) and there were a paucity of finance options available.

Things reached a nadir in November with just 509 cars sold and Tata had to act to kick sales back in to life. And they have. They’ve doubled the warranty on the Nano to 4 years and introduced a servicing plan that costs just $2 a month. Finance packages have been put in place which make it easier for buyers to qualify and Tata has ramped up advertising on TV and added new sales outlets in smaller towns and villages.

All these changes have seen sales of the Nano bounce to 5,784 sales in December, more than eleven times the woeful number in November. Which must be very encouraging for Tata, but still leaves a long way to go. Tata has the capacity to build 250,000 Nanos a year, so sales are going to have to keep climbing to keep them busy. And if they do, perhaps the Nano will become the Model T of its age.

Perhaps.


By Cars UK