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!
- Tata Nano, The Small Car’s Big Comeback http://businessviewsreviews.blogspot.com/2011/01/tata-nano-small-cars-big-comeback.html
- Video : Tata Nano gets cuddly new television ad http://www.autoblog.com/2010/12/17/video-tata-nano-gets-cuddly-new-television-ad/#continued
- Tata Nano Diesel http://carsbikesonline.com/tata-nano-diesel/
- Tata Goldplus Nano : World’s cheapest car to be covered in gold http://carsbikesonline.com/tata-nano-diesel/
- Tata Motors on New Schemes to Boost Sales http://links.visibli.com/links/325e39
- Tata Nano Open Sales http://www.marketing91.com/tata-nano-open-sales/
- Tata Nano Sales Drop Drastically http://www.marketing91.com/tata-nano-sales-drop-drastically/
- Tata Nano July sales http://living.oneindia.in/automobiles/auto-news/2010/tata-motors-sales-growth-030810.html
- Tata Nano Sales August and September http://indianautosblog.com/2010/10/tata-nano-sales-sag
- Tata Nano October Sales http://cars.sulekha.com/poor-showing-by-tata-nano-on-pre-season-ride-in-october_tata-nano_news_2021