The successful launch of Nano last year has prompted the company to seek its recognition in the US, Europe and Africa. It has become the talk of the town that the first buyer of this world’s cheapest car is full of pride. He is one among the 25000 probables picked out of 1 lakh bookers. To please the bookers, Tata is in the process of increasing the production by having two units – Uttarkhand and Gujarat. The net production will be 5 lakh units and the current production at Pantnagar is 70000 units per annum.
The car is believed to be cheaper than Maruti Alto, and has made a deep impact on the minds of world’s car makers to go in for their part. Hyundai is squeezing its brain to shell out small car with 800cc engine ,for Rs2lakhs. The tri-JV among Bajaj-Nissan- Renault is working out the small car to counter Nano. These two cars will be the main contenders to Nano during the second half of 2011. Also in the small car fray are Nissan, Fiat, General Motors, Hyundai, VW.
Tata is now facing the cost factor as its own rivalry. The material cost and manufacturing costs are no longer conducive to deliver Nano for the quoted price. This will make the company to hike the price for the next bookings. Further Tata has been in the dark ever since the fire incident to its cars came out and it retarded the electrical suppliers for this flaw. To add fuel for fire, 2 lakh bookers have withdrawn the booking for the delay in delivery.
However, some of the bookers have sold the booking at premium prices. Nano has seen a sort of ebb and low in its pricing and now the steady shot is on. This hicc up has not prevented Tata Motors to think of spreading its arms to overseas market. As its Chairman made it known, the European version of Nano will shortly roll down.