Tata Nano’s Comeback


Tata Nano, the world’s cheapest car ($2,200, €1,490, £1,186) had been experiencing a bumpy ride in the Indian domestic market, with sales plunging consistently since July 2010 and touching a bottom of barely 509 units in November 2010.

However, the small car has made a big comeback in December 2010, registering sales of 5784 units! With sales taking off, Tata Motors will make 50% more Nanos in January 2011.

Reasons attributed to slump in sales

  • Safety issues, with serious incidents of catching fire
  • Availability across only 12 of the 28 states in India
  • Long waiting time in 2009, as demand outstripped supply, resulting in customer resentment

How the Tatas managed the turnaround

  • Going back to the basics, Tata revisited design, engineering aspects and safety parameters
  • Announced safety up-gradations
  • Tata reportedly changed the vendor that supplied Switches involved in fire incidents
  • Extended warranty of 4 years/60k kms, whichever is earlier
  • Easy financing through its in-house financing arm (Tata Motor Finance)
  • Financing options through tie-ups with various banks
  • An optional comprehensive maintenance scheme for just Rs 99/- per month
  • The car has been made available at all the 874 sales outlets of the company
  • An advertising campaign in the vernacular print media (targeting rural customers) as well as television commercials

Please have a look at this lovely television ad, targeting rural customers!

And here is a sample of the print media campaign in the vernacular newspapers, highlighting safety, warranty and easy financing features! These are full page ads for a car that was expected to sell like hot cakes even otherwise!

Nano Ad


About Aman Sharma

Management Professional.
This entry was posted in Business, India and tagged , , , , , , , , , , , , , , . Bookmark the permalink.

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