Brand News #3
Nano sales slipped more than
58 per cent to just 355 units in May from last year and the volumes have
remained at a similar level for at least the last six months, which is only a
small fraction of any other competing model in the market.
And thus, Tata Nano, Ratan
Tata’s brainchild, may soon come to an end and Tata have already started
phasing out the ‘people’s car’ in the domestic market.
Tata Motors has finally
decided to stop investing any further in the ‘world’s cheapest car’ for several
reason given below but it may continue to produce it for international markets.
If the Nano has to continue
selling in India, it will have to clear the mandatory crash-test from 2019
onwards and this requires fresh investments, which Tata Motors may be unwilling
to make given the current market conditions. If Tata Motors decides to keep the
Nano running, it would also required to invest to make the small car compliant
with Bharat Stage VI emission norms, which comes into effect from 2020.
As stated by a company spokesperson, the future of the car depends largely on
regulatory conditions which does not favorable at all. But the company will produce it for world markets which will be revealed soon.
From my personal point of
view, I strongly feel that a lot of resources had been diverted to the Nano
project and now the company is tired of it.
Now due to the pressures of
improving the bottom line, the company is forced to stay away from the dream of
making the cheapest car to focusing on several different platforms like compact
and mid-sized SUV’s. Hence, it’s a good move by Tata Motors I would say.
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