Tata Motors to retire Nano, Sumo, Indigo CS and Indica by 2021
Tata Motors is going to discontinue their old products in the coming 3-4 years.
Launched in 2009 as Ratan Tata’s dream project to offer a car for the masses, sales figures of Tata Nano have been miles away from expectations. The company has tried many different strategies to revive brand Nano, but sales remain stagnant.
Aimed at rivaling Maruti Alto 800, Tata Motors had ambitious plans for Nano. Maruti sells over 20,000 units of Alto nameplate every month, probably this is why Tata too setup a 20,000 a month plant in Sanand, Gujarat. But, sales did not cross 2,500 units in any of the calendar month last year. This in spite of them launching new variants of Nano every now and then.
Tata Nano has seen poor demand with plant operating at 5-10% of annual capacity. But in spite of low sales, the Nano continues to be on sale. This is because, there are many in the company who feel that Nano is yet to meet its destiny. It is these in the management who are pushing for the revival of Nano. But it seems that time is swiftly running out for the Nano brand supporters.
As per the latest report from Times of India, Tata Motors will discontinue as many as four of their current cars within the next 3-4 years. These four cars are Nano, Sumo, Indigo CS and Indica.
But this does not mean that Tata will no longer have vehicles in the respective segments. In fact, they are already working on launching a new small car which will sit below the Tigor in company line-up. This new car, currently code-named Pelican, is based on the Nano platform. Similarly, there is replacement of other cars also planned.
Tata Motors plans to trim its current number of platforms from 6 as of now, down to 2 by 2020-21. The company aims that all new models will be positioned on these two platforms. The phaseout of 4 models is not only vital to the company portfolio but is also necessary as new safety norms calls for crash tests and BS IV emission norms are set to come in by 2018-20.
Apart from the recently launched Tigor, Tata Motors plans launch of 4 new vehicles and hence move out older vehicles to bring in newer ones. New launched could include the Nexon compact SUV which was showcased at 2016 Auto Expo and TaMo Racemo sports car which was on display at 2017 Geneva Auto Show.
It is also estimated that Tata Motors will launch a premium large hatchback to take on Maruti Suzuki Baleno, Honda Jazz and Hyundai i20 Elite and a full size sedan to compete with Maruti Suzuki Ciaz and Honda City in the future.