Tata Nano Future Looks Uncertain

Tata Motors has adopted a new strategy in the passenger vehicle segment by reducing the number of platforms from six to two.

Tata Motors said that it is non-committal on the future of its Nano small car. The company said that a decision will be taken in due course of time with the board as and when need appears.

Tata Nano Future Looks Uncertain

The company has recently revealed its future plans during the launch of its new subdivision - TAMO, which is a low investment and low volume brand. During the launch, the company confirmed that it will reduce the existing six platforms to two.

Tata Nano Future Looks Uncertain

In preparation to the new brand TAMO, the company had conducted a study and found two segments; hatchback and SUV are the future. This new platform by Tata Motors is being referred as ‘Advanced Modular Platform' (AMP).

Tata Nano Future Looks Uncertain

With the new AMP, the company plans to produce 7-8 product variants from the two platforms for a greater coverage and sizable economies of scale.

Tata Nano Future Looks Uncertain

Tata Motors MD & CEO Guenter Butschek when asked about the future of Nano, he said "I can't tell you right now because these are decisions in line with the PV strategy. These decisions are going to be taken in alignment with the board as the time and the need appears,"

Tata Nano Future Looks Uncertain

In line with the new strategy, Tata Motors is looking to reduce its capital expenditure and economies of scale through less number of platforms and address more of the segment of the automobile industry where it is currently not present and which will lead to profitability.

Tata Nano Future Looks Uncertain

Tata Motors is looking to break into the top 3 automobile manufacturers in India through the new PV strategy. The Nano has been accused by ousted Tata Sons Chairman Cyrus Mistry that the project has rendered the company losses running to nearly Rs 1,000 crores.

Tata Nano Future Looks Uncertain

Mr Butschek said that the company's presence in the entry level hatchback segment with the Nano is something that needs to be decided as it is a very competitive segment.

Tata Nano Future Looks Uncertain

He further stated that in the coming years, the entry level segment will witness a lot of changes in terms of regulations on safety and emissions. The questions remainif the company needs to be in the segment or not is "indeed a question which is pending".

Tata Nano Future Looks Uncertain

The Tata Nano sales have been on the downward trend. The company sold 6,714 units during the April-December period of FY 2016-17 compared to 17,258 units in same period last fiscal.

Tata Nano Future Looks Uncertain

Maruti Suzuki has launched a new hatchback Ignis, touted as a premium urban compact car. Here are the photos of the Ignis below, click to view.

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Article Published On: Monday, February 6, 2017, 10:02 [IST]
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