Tata Nano, the world’s cheapest car, which made its entry in Indian markets over five years ago has failed to perform as per expectations. Last 3 months average sales hover around 1,700 units, against expected 24,000 units.
A visit to Tata Nano Sanand plant, and you will be surprised to see the number of Nano’s parked. According to a recent report, over 14,000 Nano cars are parked in Sanand, which has pushed them to bring production down by 80%.
In order to revive sales, Tata has decided to introduce a diesel variant and a more powerful 800 cc petrol variant of the Nano. Both these variants are expected to be launched in the sub INR 3.5 lakh category later this year. This category already has the Hyundai Eon and Maruti Alto 800, which is the best selling car in India
This diesel variant will receive a sub 1 liter diesel engine generating less than 50 bhp power and sufficient torque to make it a strong contender in the small car segment in India. Changes made to Nano diesel will be seen in interior styling and revised bumpers while Tata Motors, keen to keep prices competitive will be using an improved version of transmission seen on the Ace pickup truck. Images here are credit to PowerDrift.