Tata Bolt Launch Delayed Due To Low Zest Sales

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Very low demand for the new Tata Zest sedan, has made Tata, one of India's largest carmakers, delay the launch of the Bolt by about three months to early next year.

Tata, India's largest carmaker in terms of turnover, has seen its sales drop for three years in a row. As per targets given to suppliers, Tata expects to sell 2,500 units of the Bolt every month.

A source, close to the development of the Bolt said, "The Bolt has been delayed to sort out production issues with the Zest sedan. The response for the Zest has been lower than expected. A big problem was that the company did not have the key AMT (automated manual transmission) version (XMA variant) available from the launch as the production of that started only in September."

According to Society of Indian Automobile Manufacturers (SIAM), the Zest, which was launched in August, sold only 3,331 units in September.

The first month for a new car is usually when the car sells the highest. That is because of excitement for the buyer and stock availability with dealers.

Last month, sales volume was 33 percent lower than the company's target of 5,000 units a month as given to suppliers till January next year.

In spite of the company announcing that the Zest received over 10,000 bookings in the first 40 days, sales did not reach the target of 5,000 cars per month. The Indica is currently selling 3,000 units a month, dropping 44 percent year-on-year and the Nano's sales are down 38 percent year-on-year, selling just 1,000 units per month.

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Story first published: Thursday, October 30, 2014, 11:00 [IST]
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