Cheap, everyman Nano is no flop, says Tata chief
Friday, 6 January 2012
NEW DELHI, Jan 5 (AP): The Tata Nano, the dirt-cheap everyman's car that started with great fanfare but faced seemingly endless troubles, will eventually prove itself a strong product, the outgoing Tata chairman said Thursday. But he acknowledged the company had not handled its rollout well.
The tiny, $2,600 Nano, which was unveiled three years ago as an automotive alternative for Indians who wanted to move up from motorbikes, found itself bogged down by production problems, poor sales and a series of car fires.
But Ratan Tata, the soon-to-retire head of the Tata business empire, called it an "affordable, all-weather family car" that would flourish.
"I don't consider it a flop," he told reporters. "I consider it that we have wasted an opportunity."
Among those lost opportunities were an inadequate advertising campaign and dealer network, he said, slowing early sales.
The Nano's troubles began before the first one hit the road, with violent farmer protests forcing Tata to relocate its factory to a different Indian state, and delaying the launch. A string of fires scared off some customers, and last month Tata announced it would replace the starter motors for free in 140,000 Nanos.
Monthly sales were as low as 509 units in late 2010, though they have since rebounded. The company sold 7,466 Nanos last month.
The tiny, $2,600 Nano, which was unveiled three years ago as an automotive alternative for Indians who wanted to move up from motorbikes, found itself bogged down by production problems, poor sales and a series of car fires.
But Ratan Tata, the soon-to-retire head of the Tata business empire, called it an "affordable, all-weather family car" that would flourish.
"I don't consider it a flop," he told reporters. "I consider it that we have wasted an opportunity."
Among those lost opportunities were an inadequate advertising campaign and dealer network, he said, slowing early sales.
The Nano's troubles began before the first one hit the road, with violent farmer protests forcing Tata to relocate its factory to a different Indian state, and delaying the launch. A string of fires scared off some customers, and last month Tata announced it would replace the starter motors for free in 140,000 Nanos.
Monthly sales were as low as 509 units in late 2010, though they have since rebounded. The company sold 7,466 Nanos last month.