Opportunity missed, not lost; Nano will be back: Ratan Tata/Tata says Nano can still be successful
Published on Thu, Jan 05, 2012 at 15:23 | Source : CNBC-TV18
Updated at Fri, Jan 06, 2012 at 09:54
Tata Motors Chairman Ratan Tata admitted that Nano, the low-cost mini-car designed for the aam admi, has been a "waste of an early opportunity", but still feels, the project is far from being a flop show.
Tata says the company is working towards a resurrection of the Nano. "We believe the upgrade will sort out issues Nano had," he said adding, "will introduce variations of the Nano to move up in the value chain."
The Nano was launched almost three years ago to great fanfare, billed as the world's cheapest car because of its initial price tag of Rs 1 lakh.
Analysts say the company erred in how it introduced the car and is fighting the perception that it is a "poor man's" vehicle.
"I don't think we were adequately ready with an advertising campaign, a dealer network," Tata agrees.
The project also suffered a major set back after the company shifted its proposed manufacturing site from Singur in West Bengal state in the face of opposition from local politicians and farmers upset over the loss of their land. The car eventually went on sale in early 2009.
Tata says the position on West Bengal is the same, that is, "will invest if environment amicable."
Meanwhile, Tata Motors is working on a Nano-like vehicle for the European markets.
Sales of the Nano have rebounded after falling to a record low of 509 units in November 2010, especially after incidents of the car catching fire were reported. Last month, Tata Motors said it is replacing the starter motor in 115,000 Nano cars.
This is Ratan Tata's last year as chairman of Tata Motors and the Tata Group. Tata was instrumental in the 2008 acquisition of Jaguar Land Rover from Ford Motor for USD 2.3 billion.
"We have no plans to shop around, nor do we have any specific brands that we want to acquire," Tata says.
The auto major is looking at manufacturing and not just assembling Land Rovers in India. "We are in discussions with Fiat for engine supply and other joint venture possibility ahead," Tata told reporters.
Differing with some of the leading corporate voices against perceived policy paralysis in the government, industrialist Tata says there is no need to be pessimistic because of the global uncertainties as India's economic fundamentals are strong.
Tata suggests that the government must look at accelerating expenditure and create jobs which was slowing down partly due to the fiscal policy and late decision taken by various ministries.
"...if we focus on infrastructure it will be good not only for today but in the future as well," he adds.
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