Decision to launch a diesel variant of Nano in India have been cast off for the time being, especially keeping in mind customer’s preference to petrol vehicles in recent times. Another reason is high cost of investment that would be involved in developing a new diesel engine. Tata Nano sales have proved to be way below expectations. For 2013/14 fiscal, Tata Motors sold just 21,129 units of Nano. This is when they have the capacity to produce 250,000 units of Nano each year. Since launch in 2008, a total of 250,283 units of Nano have been sold.
Tata Motors is well aware of customer preference to petrol cars especially due to the fact that diesel prices are escalating, thus bringing prices of both fuels nearly on par. Besides these factors, new diesel powered Nano meeting BSIV norms would also prove expensive proposition.
Tata Nano is currently priced between INR 1.41 lakhs and 2.58 lakh for a two cylinder 624cc petrol engine. Nano diesel on the other hand, would have been priced above INR 3 lakhs. This would put the Nano diesel in the same range of models such as Hyundai Eon and Chevrolet Spark, which offers better driving dynamics, and stability.
Killing Nano diesel does not mean that Tata is going to stop promoting Nano. Currently they are concentrating on increasing brand image of the Nano, more than ever before. Apart from this, they will add new engine in the form of a 1.0l petrol three cylinder with AMT gearbox, power steering and functional boot
Source Economic Times