Tata Nano slowly vanishing from market

The production and sales of the cheapest and the most affordable car of Tata Motors, Nano seems to have been dipped drastically in the last two-three months. Currently, the average daily production of the car is confined to only two at the company’s Sanand plant. Company’s other models like Tiago, Tigor, Hexa and Nexon are more in demand than Nano.

Statistically, the company dispatched 180 Nano cars in the month of August as against 711 in August 2016. This number dropped to 124 units in September and further dipped to only 57 units in October. Although these were festive months, demand seems to have been declining.

In 2009, when Tata Motors launched Nano, it was a dream project of the then chairman, Ratan Tata to price the car at Rs 1 lakh and make it as most affordable car for the public. However, this car did not live up the expectations of buyers and the car’s price landed in range of Rs 2.25 to 3.20 lakh, even after making modifications.

Company officials said that Nano is still in demand from the taxi segment and hence it would not stop its production totally. The production of its components has also declined dramatically as vendors supplying them are focusing on models of Tiago and Tigor. 

Company has also announced that production of electric Nano is under process and will be launched soon under the joint venture of Tata Motors and Coimbatore-based Jayem Automotives. The name of this new electric car would be Neo.

 
In the past one year, Tata Motor’s stock has made 52-week high of Rs 553 per share and 52-week low of Rs 357.95 per share. Currently, the stock is trading in the range Rs 420-430 per share.