Tata Motors is said to be planning to launch an all new small car this year, which it hopes will revive its falling passenger car sales. This new car to be placed between the Tata Nano and Indica could pose a serious challenge to other small cars such as the Maruti Suzuki Alto and the the Hyundai i10.
Tata Motors has not been able to fare well in the passenger car segment in recent months. The Tata Nano which was expected to become a trend setter in the Indian car market has remained a small player. With the Indian car buyer preferring small cars that are more spacious than the Nano, Tata Motors seems to have decided to develop a new small car instead of revamping the Nano.
This new small car from Tata Motors should be priced around Rs.3 lakhs. Such a price tag will mean the company will have a product that can attract first time car buyers. With the Indica gaining an image as a Taxi and the Nano not being considered by several buyers, an intermediate car model could be the only way for Tata Motors to gain sales volumes.
Tata Motors will be launching two more models along with this new car. The much delayed Safari Storme SUV is one car that should make it to the list. Expected to be launched this festive season, the new Safari Storme has been under development since several years.
Another new car from Tata Motors expected to be launched this year is the diesel variant of the Tata Nano. The Diesel Tata Nano was expected to be unveiled during the Delhi Auto Expo in January but Tata Motors decided not to do it. The diesel Nano will be powered by India's smallest diesel engine and is expected to take fuel economy standards to all new levels.
It remains to be seen if these three new cars from Tata Motors can help revive its sales. Tata Motors was recently overtaken by long time rival Mahindra in passenger car sales in June 20112.