Autoblog

REPORT: Secondhand Tata Nano models commanding 30% markup as India's elite grabs on to new trend

Chris Shunk — Wed, 23 Sep 2009 08:58:00 EST

Filed under: India, Tata

Tata Nano - Click above for high-res image gallery

The Tata Nano continues to take India by storm, and residents of the world's second most populous country appear to have gone over the deep end in an effort to secure their own personal "people's car." Australian website Drive is reporting that car buyers are paying a markup of up to 30% to purchase secondhand Nanos from the initial batch of buyers. The pent-up demand for the Nano stems in part from the fact that far more people signed up to purchase the econobox than Tata Motors has the factory capacity to build. To distribute the initial Nano allotment fairly, Tata instituted a lottery system to choose the first 100,000 customers eligible to buy the $2,500 city car.

One would think that the source of this heavy demand comes from families looking to secure a still inexpensive car, but a Mumbai car salesman seems to think it has more to do with an odd "fetish" for the car. Arif Fazulbhoy reportedly told Drive that the wealthy of India are paying over sticker to get their hands on the Nano because it has become a hot and trendy status symbol, adding "They tend to be very rich people who want the Nano for the snob value because it's new in the market." The Nano model fetching the highest premium on the open market is the XL, which has features like air conditioning and central locking.

While it's too bad that the "people's car" is being picked up mainly by India's elite, at least the lower middle class is reaping the profits from the quirky little vehicle's healthy demand. There will likely be more opportunity to profit from the Nano over the next couple years as well, as the initial allotment of 100,000 units could take until the end of 2010 to get delivered - and there are over 200,000 customers waiting in the queue.

Gallery: Tata Nano

[Source: Drive]

REPORT: Secondhand Tata Nano models commanding 30% markup as India's elite grabs on to new trend originally appeared on Autoblog on Wed, 23 Sep 2009 08:58:00 EST. Please see our terms for use of feeds.

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Tata Motors sales plunge by nearly half

Dan Roth — Mon, 05 Jan 2009 10:29:00 EST

Filed under: Car Buying, Trends, Etc., Earnings/Financials, India, Tata

Even when you (intend to) make the cheapest brand-new car in the world, you can't escape an economic downturn. Global jitters and year-end hemming and hawing have conspired to slice Tata's December sales figures nearly in half compared to a year ago. December is a traditionally slow month for auto sales as buyers try to put off expenditures until the next year (when incentives are more attractive on existing stock), but even accounting for the bargain hunters, this is a major drop.

Everyone, everywhere is down, and Tata Motors stock has taken a beating thanks to the economy and costly external issues like plant troubles. That said, recent interest rate cuts have buoyed company shares in hopes that the Nano (not to mention Saint CarBuyer) will soon arrive, and if nothing else, they still have the Indica's longevity to celebrate.

Gallery: Tato Nano - Live from Geneva

[Source: Reuters]

Tata Motors sales plunge by nearly half originally appeared on Autoblog on Mon, 05 Jan 2009 10:29:00 EST. Please see our terms for use of feeds.

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Toyota planning cheap car for emerging markets

Frank Filipponio — Wed, 22 Aug 2007 14:58:00 EST

Filed under: Budget, Toyota

Automotive News is reporting that Toyota will launch a really cheap car in the next two years. Most likely to be built in India, it is primarily intended for sale in emerging markets, but could also find its way into more developed markets, too. So far, India and Brazil seem to be the leading candidates for hosting production of this inexpensive family car. One reason the company may be siding with India is that Toyota has already acknowledged it will be building a new plant there. A new facility with an annual capacity of 100,000 units is being built near Bangalore's existing facility, which has a capacity of 60,000 units.

Toyota trails Suzuki, Hyundai and Tata in the Indian market, so a new inexpensive model could help it capture more market share. They will face stiff competition from India's own Tata Motors, which recently announced a new small car that will start at just 100,000 rupees ($2,440) when it goes on sale late next year. Renault also offers a no-frills Logan sedan in India, and companies like Fiat and Volkswagen are also looking into this quickly expanding market.

[Source: Automotive News, sub. req.]

Toyota planning cheap car for emerging markets originally appeared on Autoblog on Wed, 22 Aug 2007 14:58:00 EST. Please see our terms for use of feeds.

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Dirt cheap Tatas! Indian automaker to market $2,000 car

Chris Paukert — Fri, 19 May 2006 08:01:00 EST

Filed under: Car Buying, Plants/Manufacturing

Tata Motors Ltd. of India has announced plans to build a five-seat car that it will bring to market for less than 100,000 rupees (around $2,200).

The company is set to build a $220 million dollar factory the communist state of West Bengal to build the discount offering, with hopes of having it on the market in two years. The new vehicle could result in up to 10,000 new jobs at the plant and the company's suppliers.

Tata did not disclose more specifics about the vehicle's construction, or its name. Officials were similarly mum on production projections, as well export possibilities.

(A Tata Indigo Marina is pictured)

[Source: The Associated Press via Detroit News; Tata Motors]

Dirt cheap Tatas! Indian automaker to market $2,000 car originally appeared on Autoblog on Fri, 19 May 2006 08:01:00 EST. Please see our terms for use of feeds.

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