Tata Motors looking to tap rural market to increase Nano sales

Many has though Tata Nano would turn out to be Tata Motors’ cash cow. Unfortunately, the project failed miserably right from the word go. In India, price is a very important factor and as it turned out, the ‘Cheapest car in the World’ tag failed to make any dent amongst the populace.

The project had faced its first hurdle in the form of agitating farmers in Bengal, who had been displaced to make land for the Tata factory where the Nano was to be made. Then the project came up against a design defect for which they had to recall quite a large number of the cars. Alterations carried out the cars were put back into service but the customers had been hit by then. The engineers and the marketers are all now trying to cover up these faults and portray the car in new light to the customers. Without making much of a change in the pricing factor they have been able to come up with the new improved 2012 Nano.

This time the marketing strategy also has been changed to reach out to the people in the rural areas rather than the city dwellers. The people in rural India would be better amenable to the ‘cheapest car’ tag is what the people at Tata Motors believe.

There is also the CNG version of the Nano that the company is coming out with. This would give better fuel efficiency with far less pollution. Such an idea is for sure going to be accepted by the people.

Another customer wooing trick that Tata Motors is coming up with is the down payment of just Rs. 15000 for the Nano. There would be many a customer who would love to pay such a low premium and got back home driving a car.

There has been a boom of showrooms and campaigns that the company has built up for showcasing their Nano car. Dealerships in Hyderabad and Secunderabad have recently been inaugurated by the VP of Tata Motors, Mr. R Ramakrishna. That the company is looking towards diversifying its sales, is what he has confirmed. He further confirmed that there would be no change in price of the car even in its new format.