Tata Nano demand hits rock bottom

Tata Motors launched Tata Nano a year ago, with an aim that every one has the pleasure to own a car. The magic spill on everyone but it also faded away soon. When everyone was enjoying the fruits in the best selling season in the Indian Auto market, Tata Nano could not lure the customers. October, 2010 a record month in sales did not any good to the 'People Car'. It can be said because, of the declining graphs of the sales of Tata Nano.

The sale in the passenger cars was 24,478 units which showed a growth of 22.32 per cent. The sales of much hyped minicar Tata Nano was 3,065 units which adds to the growth of 2 per cent only. And if the sales graph of September is to be compared, it was 5,520 units, which laddered to 61 per cent from the last year's figures in the same month.

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As per the dealers of Tata Motors, Tata Nano is no more in demand. The cars which were sold were actually the pre booked cars. The dealers also added angrily that, the demand was piling up because of the concept of one lakh bookings which is why the delivery was in bulk every month, and it is now exhausted. Tata Motors concept of one lakh cars was that, for the first one lakh Tata Nano owners, price of the mini car will be the same which was announced Rs 1.23 lakh to Rs 1.72 lakh (ex showroom, New Delhi).

As per the critics from the auto industry, the pace of Tata Nano is slow than the other models. It is being highly speculated that the small car must have had production issues.

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As per Deepesh Rathore, IHS Automotive MD, (India), the Gujarat Facility Sanand which manufactures Tata Nano is not fully equipped which is leading to production faults. At the Sanand Facility, the production has been speeding up and bookings have been opened for Kerala, Karnataka, Uttar Pradesh, Maharastra, West Bengal and other places. Tata Motors is facing supply issues also which is contributing in the loss of production.

Another factor, which has lead in the declining of sales graphs is the hike in price of Tata Nano. The price has been raised by Rs 9,000, in effect from this month. The price hike is also because of the rising prices of the raw materials and other sundry costs. The price of the car will be double the cost for the off-the-shelf buyers.

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Tata Motors rivals on the other hand, Maruti Suzuki India had a record breaking sale in October with Maruti Alto, Maruti Wagon R and Maruti Swift. In India, it was the first time any company has crossed a lakh sales in a month standing at 1,07,555 units and a hike of 50.32 per cent compared to last year's figure of the corresponding period.

Another competition, Hyundai Motors India Ltd, had a growth of 22.70 per cent in the domestic market with 34,725 cars being sold when compared to last year's graph, with its winning cars such as Hyundai i10, Hyundai i20 and Hyundai Santro.

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