Tata may look outside India to expand sales of its Nano budget car as sales at home slow down.
Chief executive officer Carl-Peter Forster told an industry event in Germany that the Nano is “a raw diamond that needs polishing” and that Tata will go take the model into Asian markets “one after another”.
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Sales of the Nano slowed in India towards the end of last year although Forster said he expected sales to climb to 8,000 to 10,000 cars a month “soon” from a current rate of 6,000 to 7,000 deliveries on the back of increased marketing, improved warranties and the offer of 100% financing to customers who cannot afford down payments.
Nano’s registrations in December rose to 5,784 cars from a record low of 509 in November but still well below last July’s high of 9,000 sales.
The car, which costs as little as US$3,000, went on sale nationwide in India at the beginning of this month. Deliveries had been limited to 12 states as the company worked through initial orders and ramped up production.
Tata Motors is also offering low-cost maintenance packages and inviting prospective customers to meetings with Nano owners to overcome the concerns of first time car buyers after sales fell away because of price increases and safety concerns following reports of fires with the model.
Tata said in November that it would retrofit Nanos with additional protection in exhaust and electrical systems after the fires. Investigations concluded that reasons for the fires were “specific” to the vehicles involved, the company added.
