Tata Motors plans to fit in an 800cc petrol engine in 2013 Tata Nano along with a facelift in 2013. It seems that this will help in uplifting the sales figures that have touched lowest point in November 2012. Last month, Nano was able to vend only a small fraction of monthly target. It was able to trade only 3,500 units against the targeted 10000 units. Sources closely associated with the Nano project say that the new Nano will be on floors by same time next year. The petrol version of this revamped Nano will cost around Rs.2.5 lakhs to buyers. A diesel version of the same is under consideration.
The diesel engine inclusion seems a big move. As Mr. Basudeb Banerjee from Quant Capital, a broker who closely analyses auto sector, said that “There will acceptance of Nano 800cc diesel in the market and it will help Tata Motors spruce up the volumes. But the brand positioning of Nano in the mind of customers will prove to be a deterrent.”
Nano will continue with its 624 CC version that gives it a People’s Car look, but the new Nano will target new segments. Although several analysts doubt that the new makeover will have the desired influence on customers when global brands like Hyundai are already holding a strong position in their minds.
As last week Mr. Ratan Tata, the Tata Group Chairman, quoted that “We were not prepared to market the car as we should have. I think that has a lot to do with the fact that momentum got lost.”
The main reason cited for this loss of energy were the improper brand positioning and promotion campaigns, Singur plant controversy and insufficient dealers’ network. When asked about how Tata is addressing these issues Mr. Ratan Tata replied “It is being addressed now and I think we will succeed. It is a three-four year old product we have to do something to refresh the product, which we are also doing.”
The vehicle is also expected to get some more modifications related to style and equipment along with 800cc engine. The auto giant has already confirmed bringing in the diesel and CNG version of Nano by 2013.