A new small car from Tata Motors is under development and the vehicle will be positioned in the entry level segment which is seeing a lot of rivalry.

Alto AGS vs Nano AMT
The GenX Nano failed to sell in good numbers

Tata Motors had a very ambitious project on their hands when they were developing the Nano for the Indian market. It was going to be the cheapest car available here and the automaker was expecting it to fly off the shelves. However, things didn’t happen as expected and the Nano was selling in pretty dismal numbers.

Tata Motors then launched various updated versions of the car with hopes of gaining sales but the efforts weren’t really that futile. The Nano received a major update in the form of the GenX version which was launched a year back. Volumes continued to remain below 2000 units a month. In certain months, the hatchback brought in less than 1000 sales too.

Unfazed by all this, Tata Motors has already begun work on an all-new small car which will be launched in the entry-level hatchback segment. Officials from the company said that it is early to reveal more details but they have been in touch with owners of the Nano and they have plans for a small city car.

The small car segment is seeing intense competition amongst various manufacturers and the segment continues to receive good demand. Renault and Datsun have also upped their game with the Kwid and redi-GO while Hyundai and Honda are also likely to enter the segment in the coming years.

Tata Motors has failed to sell even the Bolt and Zest in good numbers. The company will be launching the Kite, Hexa and Nexon in the coming future and the new small car is likely to hit the markets only after all these are launched here.

Tata Motors New Small Car

– Tata Motors is working on a new car in the entry-level segment
– The automaker will launch it only after the Kite, Hexa and Nexon arrive
– The small car segment is witnessing a lot of new competition

2016 Tata Kite 5 Front
Before the new small car, Tata Motors will launch the Kite, Hexa and Nexon

Source – FinancialExpress.com