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Tata Nano Might Be Discontinued in India

The Nano project has caused the losses of over Rs 1,000 crore to the company.

  • Chhavi Kaushik
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Tata Nano

The future of the Tata Nano hatchback seems uncertain in the Indian market.

Tata Motors has been experiencing success on the back of the new products (including Tiago and Hexa) based on a new passenger vehicles (PV) strategy. With this new approach, the Pune-based carmaker aims to achieve “sustainable financial performance” and mark its name among the top three PV makers in India by 2019. However, the future of the Tata Nano hatchback seems uncertain in the Indian market.

Promoted as the ‘the cheapest Indian car’, the Tata Nano could be discontinued from the domestic market. The reason behind this move is surely the dud sales of the hatchback. The Nano project has caused the losses of over Rs 1,000 crore to the company. Despite the losses, the company has been still producing the vehicle due to the managements emotional attachment with the small car. Read – Upcoming Tata Cars in India 

Commenting on the Nano’s future, Guenter Butschek, Tata Motors MD and CEO said, “I can’t tell you right now because these are decisions in line with the PV strategy. These decisions are going to be taken in alignment with the board as the time and the need appears.”

Tata Motors has also confirmed it will trim down the PV platform number to just two by 2018, and shift to the ‘Advanced Modular Platform (AMP). The two new architectures will be used to produce 7-8 product variants for achieving greater coverage and sizable economies of scale. Moreover, Tata’s new PV strategy will help the company reduce capital expenditure via less platforms and address more segments.

Mr. Guenter Butschek also revealed that the new PV strategy was presented to Tata Motor’s board of directors in mid 2016. As far as the Nano is concerned, there are few things that need to be decided since it belongs to the highly-competitive entry level hatchback segment.

Source – TOI

 

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