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Tatas plan to peddle the worlds cheapest car to emerging India backfired when it put too much emphasis on the cost savings and not enough on the (limited) sex appeal.
But despite all odds, there are some in India who are starting to see the attractions of Tatas ugly duckling, the Nano.
As local business daily Mint reports, monthly sales of the $1200 car have nearly tripled since October to over 10,000 units in March, largely driven by first-time buyers in mid-tier cities and women. The company hopes to sell 15,000 units a month by the second half of the year.
Analysts have become cautiously optimistic about the Nanos fortunes, citing the popularity of the car in mid-tier cities, but emphasising the need to recover from the marketing gaffe it has been haunted by since its launch in 2009.
Tata didnt stress the car itself and it played too much on the cost attribute. People didnt want to buy the cheapest car in the world, Deepesh Rathore, managing director at IHS Automotive in India, told beyondbrics. But theres a lot of scope for the product. Now the car will find real customers in tier-two cities where more first-time buyers are starting to look to the Nano.
After ironing out a raft of safety concerns, Tata Motors announced last month its plans to improve the Nano, including a more powerful engine, a rectified exhaust system (which has previously caused fires), better air-conditioning, and a possible electric version.
The company has now begun a much-needed advertising campaign, after relying for too long on the initial media hype surrounding the launch of the Nano, Rathore added.
Theyve started advertising in tier-two cities on TV and in print, and that seems to be paying off. [They are highlighting] the air-condidtioning, and other positive things about the car. Perhaps they should have focused on all this in the initial stages as well.
Tata Nano picks up some speed | beyondbrics | News and views on emerging markets from the Financial Times
Meet the new fans of the Tata Nano | Firstpost
Women. And first-time car buyers.
Yes, these two groups are boosting sales of Tata Motors’ compact car, Nano, in 2012, according to a report in Mint. Fading concerns over the car’s safety, a zippy new look, improved fuel efficiency, an increase in the number of dedicated dealerships and attractive finance plans are cited as the main reasons for the surge in interest, the newspaper said.
According to a Tata Motors spokesperson, up to 10-12 percent of those behind the wheel of a Nano are women.
But despite all odds, there are some in India who are starting to see the attractions of Tatas ugly duckling, the Nano.
As local business daily Mint reports, monthly sales of the $1200 car have nearly tripled since October to over 10,000 units in March, largely driven by first-time buyers in mid-tier cities and women. The company hopes to sell 15,000 units a month by the second half of the year.
Analysts have become cautiously optimistic about the Nanos fortunes, citing the popularity of the car in mid-tier cities, but emphasising the need to recover from the marketing gaffe it has been haunted by since its launch in 2009.
Tata didnt stress the car itself and it played too much on the cost attribute. People didnt want to buy the cheapest car in the world, Deepesh Rathore, managing director at IHS Automotive in India, told beyondbrics. But theres a lot of scope for the product. Now the car will find real customers in tier-two cities where more first-time buyers are starting to look to the Nano.
After ironing out a raft of safety concerns, Tata Motors announced last month its plans to improve the Nano, including a more powerful engine, a rectified exhaust system (which has previously caused fires), better air-conditioning, and a possible electric version.
The company has now begun a much-needed advertising campaign, after relying for too long on the initial media hype surrounding the launch of the Nano, Rathore added.
Theyve started advertising in tier-two cities on TV and in print, and that seems to be paying off. [They are highlighting] the air-condidtioning, and other positive things about the car. Perhaps they should have focused on all this in the initial stages as well.
Tata Nano picks up some speed | beyondbrics | News and views on emerging markets from the Financial Times
Meet the new fans of the Tata Nano | Firstpost
Women. And first-time car buyers.
Yes, these two groups are boosting sales of Tata Motors’ compact car, Nano, in 2012, according to a report in Mint. Fading concerns over the car’s safety, a zippy new look, improved fuel efficiency, an increase in the number of dedicated dealerships and attractive finance plans are cited as the main reasons for the surge in interest, the newspaper said.
According to a Tata Motors spokesperson, up to 10-12 percent of those behind the wheel of a Nano are women.
