Autoblog

Tata looking to add nicer Nano models to reverse sales flop

Zach Bowman — Sun, 14 Apr 2013 14:59:00 EST

Filed under: Budget, Hatchback, India, Tata

Bloomberg reports Tata may introduce more expensive vehicles based on the automaker's low-buck Nano in an attempt to lure more buyers. As the company discovered, even the world's least wealthy drivers aren't interested in a vehicle marketed as the world's cheapest car.

Wrap your head around that one.

Tata has sold 229,157 Nano models since 2009, and last month saw sales fall by 86 percent compared to March 2012. Even so, the company says it doesn't plan to kill off the car. Instead, Tata may bring a number of Nano variations to market.

Those may include something along the lines of the Pixel Concept. That machine debuted at the 2011 Geneva Motor Show, offering two doors and a diesel engine along with a bit more style. Specifically, Tata wants to target a wide range of buyers across multiple price points instead of attempting to sell people a four-wheeled scooter replacement.

Tata looking to add nicer Nano models to reverse sales flop originally appeared on Autoblog on Sun, 14 Apr 2013 14:59:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Redesigned Tata Nano to arrive in US wearing price tag under $10k

Chris Tutor — Mon, 15 Oct 2012 16:31:00 EST

Filed under: Budget, India, Tata

Tata's much ballyhooed Nano isn't exactly selling as expected in its home market of India, especially after the well-publicized fires engulfing the several examples of the world's cheapest car. Despite that, the head of Tata Group, Ratan Tata, says his company remains intent on bringing an updated sub-$10,000 Nano to the States, and he intends to do so in three years.

While the Indian market gets a bare-bones Nano powered by a two-cylinder, 37-horsepower engine, Tata unsurprisingly says the US version will have a larger engine, power steering and traction control.

"The Smart and the Fiat 500 have high sticker prices, and people buy them because they are small cars," Tata tells Automotive News. "But everyone knows you put a lot of money into it. We hope that the sub-$10,000 car has appeal."

With the US economy still slowly recovering, a car for under $10k could have plenty of appeal. But the Indian automaker has several obstacles to overcome first, not the least of which is building a dealer network for the Nano. Tata owns Jaguar and Land Rover, but that group's CEO, Andy Goss, says there has been no discussion about using those dealers to distribute the Nano.

Perhaps the updated US-bound Nano will be more like the Nano Megapixel concept (pictured above) we saw at the Geneva Motor Show back in March. That car had a longer, 138-inch wheelbase and a larger 325cc engine supplemented by two electric motors. It's safe to assume that if Tata wants to keep costs down so that it can offer the car below $10,000, the next Nano won't get a hybrid powertrain like the Megapixel, but perhaps it will pick up some of the car's size and styling cues.

Redesigned Tata Nano to arrive in US wearing price tag under $10k originally appeared on Autoblog on Mon, 15 Oct 2012 16:31:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Ratan Tata hopes to restart Nano sales after fiery start [w/video]

Chris Tutor — Fri, 24 Aug 2012 09:15:00 EST

Filed under: Budget, Videos, Jaguar, Land Rover, India, Tata

When India's Tata introduced the Nano in 2009 at about $2,500, it was a hot seller. It was expected to set the world on fire with demand for cheap wheels. In fact, a year after its rollout, the Nano almost did set the world on fire after at least three units burned to a crisp. Sales plummeted to a record low of 509 in November, 2010.

Tata Chairman Ratan Tata has run the company for 20 years and plans to retire at the end of this year. But before he leaves the company, he hopes to revive sales of the little car he helped develop.

"The Nano is something I would love to make successful because I don't think it's exploited its full potential right now," Tata said in an interview with Bloomberg TV India. "There has to be another push to make Nano what it can be."

Extended warranties for current Nano owners, as well as promises that the fires were only isolated incidents, were the first step at restoring confidence in the Nano. A new version of the Nano came out in November with a larger engine, and July sales totaled 5,485. In all of last year it sold 74,527. By comparison, Suzuki sold 491,389 examples of its competing Maruti brand.

In the video below, Ratan Tata talks a bit about the company's purchase of Jaguar and Land Rover and of his upcoming retirement.

Continue reading Ratan Tata hopes to restart Nano sales after fiery start [w/video]

Ratan Tata hopes to restart Nano sales after fiery start [w/video] originally appeared on Autoblog on Fri, 24 Aug 2012 09:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Jay Leno's Garage releases Bollywood-inspired Tata Nano episode

Zach Bowman — Tue, 29 May 2012 19:31:00 EST

Filed under: Budget, Etc., Celebrities, India

Jay Leno has finally turned out the Tata Nano episode of Jay Leno's Garage. As it turns out, the television personality actually found a way to purchase the tiny machine for himself, and the show follows the car all the way down the production line and to the Big Dog Garage in Los Angeles. Leno rolled out a whole passel of Bollywood dancers to mark the occasion and even abandoned his traditional denim uniform for an elegant Indian suit. Unfortunately, the Nano isn't legal to operate on U.S. roads, so the comedian had to come up with a place to play with his new toy.

The Los Angeles Police Department was more than happy to offer Leno a little time on their test track to stretch the Nano's legs. Despite the small engine, the car seems plenty entertaining to drive, though its suspension is clearly set up to handle the rough streets and byways of the Indian countryside. Check out the clip for yourself.

Continue reading Jay Leno's Garage releases Bollywood-inspired Tata Nano episode

Jay Leno's Garage releases Bollywood-inspired Tata Nano episode originally appeared on Autoblog on Tue, 29 May 2012 19:31:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Tata Nano to rub shoulders with priceless iron in Jay Leno's Garage

Zach Bowman — Wed, 16 May 2012 15:31:00 EST

Filed under: Budget, Etc., Hatchback, Celebrities, India

It looks as if Jay Leno has welcomed a Tata Nano to his Big Dog Garage recently. The comedian even went so far as to don traditional Indian garb and hire a troop of Bollywood dancers to mark the occasion.

Details are scarce at the moment, but judging from the photos that have shown up on Leno's Facebook page, it looks as if we'll see the machine on an episode of "Jay Leno's Garage" sometime soon. The car boasts a white paint scheme with the Indian tri-color laid over the rear doors and hood. Whether or not Leno actually bought the machine remains unclear.

The comedian took the time to bow for the cameras and place his hands together in the "Namaskar" greeting. We look forward to seeing the full episode. In the meantime, check out the behind-the-scenes photos in the gallery.

Tata Nano to rub shoulders with priceless iron in Jay Leno's Garage originally appeared on Autoblog on Wed, 16 May 2012 15:31:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Tata recalling all pre-2012 Nano models over bad starter

Zach Bowman — Wed, 28 Dec 2011 14:45:00 EST

Filed under: Budget, Etc., Recalls, Safety, India

Tata Motors has issued a recall for all Nano models manufactured between July 2009 and October 2011. The company will replace the vehicles' starter motors free of charge. And while the Indian automaker has declined to say just how many vehicles will be affected by the recall, local news reports have said as many as 145,000 Nano vehicles will receive a new starter. Tata says the recall has been underway for some time, noting it has already replaced somewhere around 50,000 starters to date. The entire recall program is expected to cost Tata around $20.8 million at current conversion rates.

The automaker has released an updated version of the Nano called the Nano 2012. The revised model is not included in the recall.

Tata hasn't seen the sort of sales success the company had hoped for with the world's least expensive new car. From labor unrest to perception issues to a wave of fires and safety upgrades, the Nano has had a hard row to hoe since birth.

Tata recalling all pre-2012 Nano models over bad starter originally appeared on Autoblog on Wed, 28 Dec 2011 14:45:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

First 2012 Tata Nano commercial released, it's "Insane, bro!"

Jonathon Ramsey — Sun, 27 Nov 2011 20:01:00 EST

Filed under: Marketing/Advertising, Tata

Tata is discovering, painfully, that perhaps it went a little too cheap when it designed the world's cheapest car. The Nano has been selling at about one-twentieth of company projections, which led to upgrades such as more power, more room, an anti-roll bar, power brakes and better steering.

The first commercial showing off its new attitude has been released. It's understated by what we think of as Indian standards, but it does include the line, "Insane, bro!" You can enjoy it and the new Nano after the jump.

Continue reading First 2012 Tata Nano commercial released, it's "Insane, bro!"

First 2012 Tata Nano commercial released, it's "Insane, bro!" originally appeared on Autoblog on Sun, 27 Nov 2011 20:01:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Tata Nano gets upgrades, looks to beat sluggish sales

Zach Bowman — Mon, 21 Nov 2011 13:30:00 EST

Filed under: Car Buying, Budget, Etc., Hatchback, India

Tata is out to battle lukewarm demand for the company's Nano with a range of improvements to the world's least-expensive new vehicle. Engineers have upped the Nano's power and fuel efficiency while decreasing emissions at the same time. The vehicle's 624-cc engine now produces a whopping 37.5 horsepower, enough to help the machine tackle up to 30 percent road grades and reach a max speed of 65 mph. The company has also reworked the suspension on the Nano with a new anti-roll bar in the front as well as a redesigned steering mechanism.

More importantly, the Nano Standard now comes with power-assisted brakes. That nicety was only available on higher trims in the past. Inside, the Nano now wears new materials available in three colors: beige, black or gray, though buyers may now select from a range of 10 different exterior paints.

Tata is likely desperate to do something to improve the vehicle's sales. While the company originally projected that buyers would take home between 20,000 and 25,000 Nano vehicles a month, September only saw 1,200 units leave dealer lots. Hit the jump for the full press release.

Continue reading Tata Nano gets upgrades, looks to beat sluggish sales

Tata Nano gets upgrades, looks to beat sluggish sales originally appeared on Autoblog on Mon, 21 Nov 2011 13:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Tata finally shows off its $4.6M Nano Gold Plus

Jeff Glucker — Tue, 20 Sep 2011 13:30:00 EST

Filed under: Aftermarket, Etc., Tata, Design/Style

Tata is looking to play with both sides of the automotive pricing coin. On one side, it has the Nano, which is arguably the least expensive new automobile on the planet. In its native India, the Nano can be had from around $2,500, and it's been reported that an updated version would run around $7,000 if sold in North America. Now, however, there is now a special new version of the Nano which raises costs a bit. How does $4.6 million sound?

The Tata family has produced this gold and jewel encrusted Nano as a celebratory ode to their Gold Plus jewelry stores. While a $4.6 million showpiece seems a bit much, it's not everyday your company celebrates its 5,000th anniversary.

This Goldmember-mobile is covered in 176 pounds of 22 karat gold. Add in 33 pounds of silver and over 10,000 precious gems and stones, and you have the bling ride to end all bling ride discussions. Let's hope they upgraded the powertrain to cope with all that extra weight, eh? Get a closer look at this one-off $4.6 million Nano by clicking through our gallery.

Tata finally shows off its $4.6M Nano Gold Plus originally appeared on Autoblog on Tue, 20 Sep 2011 13:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Rajasthan, India offering free Tata Nano in exchange for your sterilization

Jeff Glucker — Fri, 01 Jul 2011 11:31:00 EST

Filed under: Etc., India, Tata

2011 Tata Nano - Click above for high-res image gallery

According to a 2011 census, India has a population of 1,210,193,422 people. That's 17.47 percent of the world's population living on just 2.3 percent of the planet. The only place more crowded is a new In-N-Out at lunch time. Health officials in India are looking for novel ways to drum up interest in sterilization clinics, and one in particular has resorted to prize giveaways. The top draw? A new Tata Nano.

According to The Times of India, Jhunjhunu in Rajasthan is offering a variety of prizes for men who come into their clinic and put the clamps on their own private ball state swim team. Besides the Nano, prizes include motorcycles, TVs and kitchen stand mixers.

Rajasthan, India offering free Tata Nano in exchange for your sterilization originally appeared on Autoblog on Fri, 01 Jul 2011 11:31:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Report: Tata to double Nano production amidst sales uptick

Aaron Richardson — Fri, 08 Apr 2011 14:31:00 EST

Filed under: Budget, Plants/Manufacturing, Earnings/Financials, Tata

2011 Tata Nano CX - Click above for high-res image gallery

The Tata Nano has enjoyed an increase in sales in the last couple of months, reportedly sparking Tata Motors to double production of its budget-minded microcar this fiscal year. In March, the Indian automaker moved 8,707 examples, pulling to within spitting distance of its 9,000-unit sales record for July, 2010.

After a summer selling record numbers, the Nano's sales plummeted to just 589 in November, following numerous reports that alleged that the cars were mysteriously bursting into flames. After the mysterious fires, Tata offered free extended warranties on the cars, up to 90 percent financing on easy terms, and a comprehensive maintenance plan at just 99 rupees a month (about $2.25 U.S.).

The incentives seem to have struck a chord with buyers, and the Nano is right back where it was a year ago. Currently, Tata is building 9,000-10,000 cars a month at its Sanand, India plant, and had planned to increase that rate to 15,000 this fiscal year. In light of the sales spike, though, that number was bumped to 18,000 to 20,000 units a month.

Gallery: 2011 Tata Nano CX: Quick Spin

Photos copyright (C)2011 Rex Roy / AOL

[Source: The Hindu Business Line]

Report: Tata to double Nano production amidst sales uptick originally appeared on Autoblog on Fri, 08 Apr 2011 14:31:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Autoblog Podcast #222: Chevy Colorado, Porsche 918, Tata Nano for U.S. and J.D. Power Reliability

Dan Roth — Tue, 22 Mar 2011 17:15:00 EST

Filed under: Podcasts, Etc., Chevrolet, Porsche, Tata

Click above for the Autoblog Podcast in iTunes, RSS or listen now!

Autoblog Podcast #222 is ready to go, and the crew this week is Chris Shunk, Zach Bowman and Dan Roth. Joining this trio is Dave Sullivan of AutoPacific, and topics range from the next-generation Chevrolet Colorado, to the Porsche 918 Spyder, the possibility of the Tata Nano in the States and J.D. Power Reliability results. Your feedback in our Q&A module winds us up, and we've embedded that in the post below, as well. Thanks for listening, we'll see you next week!

Autoblog Podcast #222: Chevrolet Colorado concept, Porsche 918 Spyder, Tata Nano in the U.S. and JD Power Reliability

In the Autoblog Garage:

2011 Jeep Patriot
2011 Audi A8
2011 Hyundai Equus

Hosts: Dan Roth, Chris Shunk, Zach Bowman

Guest: Dave Sullivan

Runtime: 01:28:10

Get the podcast:
[iTunes] Subscribe to the Autoblog Podcast in iTunes
[RSS] Add the Autoblog Podcast feed to your RSS aggregator
[MP3] Download the MP3 directly

Feedback:
Email: Podcast at Autoblog dot com
Voicemail: 734-288-8POD (734-288-8763)

Review the show in iTunes and take our survey

Autoblog Podcast #222: Chevy Colorado, Porsche 918, Tata Nano for U.S. and J.D. Power Reliability originally appeared on Autoblog on Tue, 22 Mar 2011 17:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Submit your questions for Autoblog Podcast #222

Dan Roth — Mon, 21 Mar 2011 17:43:00 EST

Filed under: Hybrid, Etc., Chevrolet, Chrysler, Lincoln, Porsche

Click above to subscribe to The Autoblog Podcast in iTunes

We record Episode #222 of the Autoblog Podcast tonight, so check out our discussion topics below. You can use the forum below to drop us your own feedback and questions, or vote on your fellow readers' submissions to help determine what else we discuss this evening. You can subscribe to the Autoblog Podcast in iTunes if you haven't already to hear your question answered.

Discussion Topics for Autoblog Podcast Episode #222

Subscribe to the Autoblog Podacast and hear your questions asked:
[iTunes] Subscribe to the Autoblog Podcast in iTunes
[RSS] Add the Autoblog Podcast feed to your RSS aggregator

Submit your questions for Autoblog Podcast #222 originally appeared on Autoblog on Mon, 21 Mar 2011 17:43:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Report: Tata hopes to offer $7,000 car in U.S.

Jeff Glucker — Fri, 18 Mar 2011 11:30:00 EST

Filed under: Car Buying, Budget, India, Tata

2011 Tata Nano CX - Click above for high-res image gallery

Is the Tata Nano finally ready to take on U.S. roads? Ratan Tata, Chairman of the Tata Group, believes so, but the car won't be the same $2,500 vehicle found in India. Instead, according to The New York Times, Tata says the American market will get a car built to be competitive here yet still priced well below the competition.

It seems the North American-spec Nano could cost between $7,000 and $8,000. Will that be enough to lure buyers into their local Tata dealer's showrooms? If gas prices keep climbing, consumers could be attracted by the Nano if the Americanized version can achieve something along the lines of the 52 miles per gallon city/62 miles per gallon highway fuel economy that the current model achieves.

Gallery: 2011 Tata Nano CX: Quick Spin

Photos Copyright (C)2011 Rex Roy / AOL

[Source: The New York Times]

Report: Tata hopes to offer $7,000 car in U.S. originally appeared on Autoblog on Fri, 18 Mar 2011 11:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Report: Tata Pixel given European green light

Aaron Richardson — Wed, 16 Mar 2011 07:59:00 EST

Filed under: Concept Cars, Budget, Geneva Motor Show, Europe, Hatchback, Tata, Diesel

2011 Tata Pixel Concept - Click above for high-res image gallery

Tata Motors has reportedly approved the Tata Pixel, a microcar concept it showed off at the 2011 Geneva Motor Show, for production. The minute Pixel is advertised as the most efficiently-packaged four-seater in the world. It comes in at just under 10 feet long, and is nearly a foot shy of the Tata Nano's overall length.

Assuming the report from Autocar is accurate, the Pixel will take the place of the previously-proposed Nano Europa once the doors have been converted to traditionally-opening units and the gauges have been engineered.

The Pixel will be powered by the Nano's 60-horsepower, 1.2-liter diesel, which will be mounted under the back seats, turning a five-speed gearbox. No word yet on when Tata plans to have the car on sale, but it seems to be pushing through quickly.

Gallery: Tata Pixel Concept: Geneva 2011

Report: Tata Pixel given European green light originally appeared on Autoblog on Wed, 16 Mar 2011 07:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Geneva 2011: Tata Pixel Concept turns on itself

Aaron Richardson — Wed, 02 Mar 2011 15:39:00 EST

Filed under: Concept Cars, Budget, Geneva Motor Show, Technology, Hatchback, Tata, Diesel

Tata Pixel Concept - Click above for high-res image gallery

Tata has revealed its Euro city car concept in Geneva today and it's a trick little piece. First off, Tata says it is the most efficiently-packaged four-seater in the world, comfortably seating four regulation-size adults in a car just 10 feet long.

Even more trick is the car's zero turning radius system, which, in simple terms, rotates the rear wheels in separate directions to make parking as easy as possible in tight spaces. According to Tata, the system works with the help of something called a "Zero Turn turoidal traction-drive Infinitely Variable Transmission. Right. The effect is that the outside rear wheel spins forward while the inside wheels spins backward, creating a pivot point.

In keeping with the modern microcar trend, Tata claims that the Pixel will return more than 60 mpg and only releases 89 grams of C02 per kilometer. The efficiency comes by way of a 1.2-liter three-cylinder turbodiesel, which, though it isn't a full hybrid, employs stop-start technology and regenerative battery charging.

Could we be looking at a blueprint for a future Nano? Perhaps more in form factor than in specific technologies, but either way, this is a nifty looking little space egg.

Gallery: Tata Pixel Concept: Geneva 2011

Continue reading Geneva 2011: Tata Pixel Concept turns on itself

Geneva 2011: Tata Pixel Concept turns on itself originally appeared on Autoblog on Wed, 02 Mar 2011 15:39:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Why, yes, that is a Tata Nano covered in pure gold

Noah Joseph — Mon, 27 Dec 2010 19:28:00 EST

Filed under: Budget, Hatchback, India, Tata, Design/Style, Luxury

Tata Nano Gold Plus by Titan Industries - Click above for image gallery

Try to imagine the most basic car on the road, and you'll likely conjure up images of the Tata Nano. The Citroën 2CV of our time, the Nano was conceived as bare-bones, bargain-basement transport for the masses. But while it makes the rest of us wonder how much our own cars are really worth, sales of the diminutive budget car have been lagging in the wake of safety concerns after cars were reported to be spontaneously combusting due to bad wiring and such.

To drum up enthusiasm for the Nano, Tata has brought in one of its subsidiaries, Titan Industries, to give the car a more luxe appearance in the form of gold and jewels. Celebrating the 5,000th anniversary of Indian jewelry, Tata and Titan launched a public campaign to solicit designs for a bedazzled Nano. Thirteen designs came in, with the winner you see here chosen just a few days ago. The conspicuous one-off will be crafted out of pure gold by Titan at its facility in Bagalore. Have a closer look at the winning design, along with a couple of the runners-up, in the gallery below.

Gallery: Tata Nano Gold Plus by Titan Industries

[Source: International Business Times]

Why, yes, that is a Tata Nano covered in pure gold originally appeared on Autoblog on Mon, 27 Dec 2010 19:28:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Video: Tata Nano gets cuddly new television ad

Jeremy Korzeniewski — Fri, 17 Dec 2010 19:58:00 EST

Filed under: Budget, Marketing/Advertising, Videos, Hatchback, India, Tata

She loves the new Tata Nano in the driveway - Click above to watch the video after the break

If small equals cute, the Tata Nano might be the cuddly-wuddliest little car in the world. Sadly, that cuteness isn't necessarily translating into sales at the level the Indian automaker was planning for. Hence, advertisements.

While Tata usually veers towards the humor side of the advertising coin, for its first Nano commercial, Tata has decided to dance upon the heartstrings of the Indian audience, and rather successfully we might add. 'Course, we're not Indian, and no, those weren't tears - we just had something in our eye...

Click on past the break to watch the Tata Nano advertisement, where you'll see an adorable little girl with too much eye makeup asking her grandmother when their new microcar will make it home. As you'll see in the video, the Nano impresses all who see it on its journey from dealership to neighborhood. And it finally gets a little eye makeup of its own. Aww...

[Source: YouTube via Indian Autos Blog]

Continue reading Video: Tata Nano gets cuddly new television ad

Video: Tata Nano gets cuddly new television ad originally appeared on Autoblog on Fri, 17 Dec 2010 19:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Tata Nano retrofitted with four-year warranty to assuage quality fears

Chris Shunk — Fri, 10 Dec 2010 14:00:00 EST

Filed under: Safety, Tata

2011 Tata Nano - click above for high-res image gallery

Tata Nano sales may have started out strong, but a number of price increases and several reports of electrical or exhaust fires have resulted in a huge sales plunge for the world's most affordable vehicle. Last month, Tata sold just 509 copies of the micro mini - a far cry from the massive waiting list for the Nano back in 2009.

Automotive News reports that the Indian automaker is looking to once again win over perspective buyers by introducing a four-year factory warranty. What's more, Tata will extend the warranty to all 70,000 owners already in the books. The automaker has attempted to fix the vehicle fire issue as well, offering all 70,000 owners the option of installing "additional safety protection in the exhaust system and the electrical system." Tata claims that foreign contaminants in and around the electrical system and exhaust system could be responsible for the fires.

Gallery: 2011 Tata Nano CX: Quick Spin

Photos copyright (C)2010 Rex Roy / AOL

[Source: Automotive News - sub. req.]

Tata Nano retrofitted with four-year warranty to assuage quality fears originally appeared on Autoblog on Fri, 10 Dec 2010 14:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Report: Tata Nano sales plunge to just 589 units in November

Chris Shunk — Thu, 02 Dec 2010 11:28:00 EST

Filed under: Car Buying, Budget, India, Tata

2011 Tata Nano CX - Click above for high-res image gallery

The Tata Nano was such a hot commodity when it entered the Indian market that Tata Motors felt compelled to hold a lottery to determine the first 100,000 customers. A reported 70,000 copies of the $2,500+ econobox have been sold to date, but November apparently didn't budge that number much.

Bloomberg reports that only 589 Nano models were sold in November; a minuscule total for a mass-market car. Tata CEO Carl-Peter Forster reportedly blames a lack of financing options as the reason customers aren't buying. Forster claims that the Nano is popular with customers who currently use a bike or motorcycle for transportation, and the feeling is that banks fear that extending a loan to a lower income buyer could bring increased risk of default.

But while bank loans are one problem, another issue could stem from the fact that the Nano has been in the news for catching fire. That's definitely not a desirable feature, and we're thinking that customers who plunk down their life savings for their first vehicle don't want their low-cost car to turn into a pricey car-b-que. The 'no loans' theory sounds even less likely after hearing that overall Tata sales in November were 54,622, up one percent year-over-year. And the icing on the cake? Tata has also raised the price of the Nano twice over the past few months; $198 in October and four percent back in July. That's about $300 more than the car sold for at launch.

Gallery: 2011 Tata Nano CX: Quick Spin

Report: Tata Nano sales plunge to just 589 units in November originally appeared on Autoblog on Thu, 02 Dec 2010 11:28:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments