Tata Nano brand image takes a hit following safety issues

Tata Nano, Tata Nano News | | September 15, 2011 at 5:48 AM



wheels burning nanos blogSpan Tata Nano brand image takes a hit following safety issues

Tata Nano’s image has once again taken a hit and that too in the international market. A Tata Nano operated by Budget Taxi Company in Sri Lanka caught fire recently. This comes after the upgrade of Tata Nano in November 2010 following freak incidents of the car catching fire in India. This was followed by another Nano going up in flames in Chennai.

Experts believe that the overall image of Tata Nano may take a hit with the Sri Lanka encore potentially affecting the company’s plans to launch the Nano in other international markets. “We will investigate what may have happened in this particular unit,” Tata Motors spokesperson said in an e-mail response to Financial Chronicle. Sri Lanka was the first country to which Tata Motors started exporting the Nano in May this year. The company had also launched the car in Nepal in June 2011.

Deepak Jain, assistant vice-president at domestic brokerage Sharekhan said, “The fire incident in Sri Lanka will have an overall impact on the brand image of Tata Nano and Tata Motors. This type of incident shows that still there are safety related issues with the Nano.” Mitul Shah, auto analyst at First Global said the fire incident will spoil the brand image of Tata Motors in export markets and might affect sales of other products.

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