Focus on Small Cities, Service and Spares Improved Tata Motors Nano Sales

Last year, there were incidents of Nano car catching fire. Many who had booked the car in April 2009 lost patience and cancelled their bookings. Word-of-mouth publicity, which can make or break any new product in India, did not favour the Nano.

The numbers have recovered gradually. In the whole of 2011, Tata Motors sold 70,432 Nanos, way below the Indigo (87,925) and the Indica (97,845).

What the company didn’t realise was that the market for the Nano could be small towns and villages. The challenge was to reach the car to these markets. Tata Motors has, thus, set up Nano access points through its dealers. Tata Motors needs to provide buyers inexpensive spares and convenient service options. Exclusive dealership for Nano made spares and service easily available to the buyers.

The Nano is no longer the Rs 1-lakh car it was supposed to be, though it is still the cheapest thing on four wheels. For prospective buyers, it’s still a deeply thought out decision. To bring down the cost of ownership, Tata Motors has introduced warranty of four years on parts. It has, at times, also thrown in freebies like Tanishq gift vouchers and accessories with the car.

Source:
http://www.business-standard.com