Tata Motors has drawn up an ambitious plan to take its small car Nano into new and emerging global markets. As per the plan shared with a select list of vendors, the company has identified a list of developing countries that include Thailand, Sri Lanka, Indonesia and parts of Africa for exporting the car. The company plans to ship the world’s cheapest car to these markets by the end of the calendar year. The move comes close on the heels of the company gearing up for the launch of the Nano in the European markets. ?Tatas have identified a list of third world markets that have largely the same requirements as it is India,? an industry source privy to the details told FE.
He said that the move is aimed at not only increasing the Nano sales, but creating markets for sustaining the volumes over a period of time. ?Brand Nano has gained popularity in various parts of the world. The car is likely to be tweaked to specific markets,? the source added. He said that over a period of time, the company has sought to make global inroads with its passenger car portfolio, but has never been very successful. Tata Motors is already a major player in the commercial vehicle segment, exporting close to 1,000 units per month. The company exports its range of commercial vehicles to parts of South East Asia, Middle-East, South America and Europe. Among its passenger vehicles, hatchback Indica is the most exported car by the company. In January Tatas exported close to 300 units of Indica, down almost 50% from 448 units in January 2010.
When contacted about the company’s plans to export the Nano to third world markets, a company spokesperson neither denied nor confirmed the development. He said that the company has been ?conscious? that the Nano would be appropriate for other ?relevant? countries, however no formal announcement has been made. ?Tata Motors has not made any such announcement. As and when any such decision is taken, we will make appropriate announcements,? the spokesperson said.
Leader of the automotive practice at PricewaterhouseCoopers Abdul Majeed said that since emerging markets had similar economic conditions to India, a cost-friendly ultra small car like Nano would be very successful. He however added that Tatas would have to eventually set up manufacturing bases near these countries to earn customer satisfaction. ?I expect Tata Motors to set up manufacturing plants in these parts once volumes reach their expected level,? he said.
Owing to negative publicity of the Nano’s apparent engineering deficits over the last one-year, sales of the Nano had dipped below 1,000 units. However, due to various initiatives taken up by the company helped by a focused advertisement campaigns, Nano sales have been restored. In February its sales doubled to 8,262 units.