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The Tata Nano is the most ambitious project to have ever undertaken in Indian automobile history. The Nano was launched and before it could conquer the market, there were a few problems, which led to delay in production. Add to that the fire incidents and the Nano did not really start off with positive publicity. However sales caught up and soon Tata Motors started doing decent numbers with the 2012 Nano. Now the company plans to open 230 Nano showrooms to sell the world’s cheapest car. These showrooms will be opened in the next one year. As of today, Tata has 120 Nano exclusive showrooms in the country.
But will these help the sales of the Tata Nano, which currently is leaving half the capacity idle at the Sanand facility. Ofcourse Tata Motors will tap into neighboring markets like Nepal and Sri Lanka to boost the overall sales of the Nano but will Nano specific showrooms help the Nano’s cause? Yes and No. Yes because distribution is vital and with more touch points for customer interaction, the company is bound to sell more cars. However what the Nano lacks is a diesel heart, something dearly missed by 2-wheeler customers.
Tata Motors aim to launch the Nano was to get 2-wheeler owners on 4-wheels. However the mentality of 2-wheeler customers is quite different. A motorcycle like the Hero Splendor returns around 70 km/l, which is almost 4 times the average from a Tata Nano car. Factor in the cost of petrol nowadays and it becomes apparent why motorcyclists are hesitant on moving to the Nano. With the diesel Nano, the cost of running won’t be as high as the petrol Nano (which is still quite cheap, but only trails in comparison to a motorcycle). The solution for Tata Motors to increase sales lies in the diesel Nano, which is not expected to be launched until next year.
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