Tuesday, December 27, 2011

Nano 2012 May Cost More In Year 2012

Tata Nano 2012

Next year onwards, you may have to cough up more to own a Nano. Tata Motors is seriously considering increasing prices of its ultra low-cost car.

The price hike is expected to be in the range of Rs. 5,000 on its newly-launched Nano 2012 model. However, the timeframe of the hike is currently not known. “Tata Motors will have to increase prices as the product was launched at a similar price to that of the previous Nano,” said sources. When contacted, a company spokesperson said, “We do not give guidance on pricing.”

The company in November had introduced additional features for the Nano at the same price point. The upgraded Nano features new interiors, a powerful gasoline engine and better fuel efficiency. “The cost is going up on the material side due to rupee fluctuations. Also, the new Nano is generating good response from customers, hence it would be easy for the company to pass on the hike,” said an analyst with a domestic brokerage, requesting anonymity.

On the other hand, experts feel that the recent replacement of starter motors in all older models of the Nano could affect the sales of Nano 2012 on a short-term basis. According to a news report, Tata Motors is substituting the old starter motor with a new and ‘better’ one, currently used in Nano 2012. The company will replace this component free of cost for around 1,40,000 Nanos sold so far.

According to a Tata Motors spokesperson, the exercise cannot be termed as a recall. “We are just replacing the component. The exercise was started in October and has already covered 50,000 vehicles so far,” he said.

“Indian customers do not forgive easily. The market is anyway weak. The incident might have a short term impact on the new Nano sales,” said V G Ramakrishnan, director with Frost and Sullivan.

Analysts say the replacement exercise undertaken by Tata Motors is by far the biggest in the India. Recently, Toyota recalled 41,000 Etios and Liva cars to replace a faulty inlet pipe to the fuel tank. Similarly, Honda Siel in September recalled 72,115 units of City sedan to fix faulty power window switches.

Sales of the Tata Nano were 6,401 numbers in November 2011, compared to 509 units sold in November last year. Tata Motors sold 39,646 units Nano between April and November 2011, compared to 40,976 units sold during the same period last year.

Source: DNA India

1 comment:

  1. VOlkswagen should also recall all their cars as these cars open from inside at high speed. No family person should buy this car. Pathetic design. This issue exists for all the german cars VW _ SKODA. I dont understand how ARAI gave permission for such vehicle to be on road.