Nano customers prefer to drive 2009 model

  • 20/07/2008

  • Economic Times (New Delhi)

After October Launch, Co May Schedule More Deliveries For The New Year Lijee Philip MUMBAI PROSPECTIVE customers of Tata Motors' Nano are learnt to be more keen on owning a 2009 model, compared to a September 2008 make, prompting the auto major to schedule more deliveries in the New Year. Although this could alter Tata Motors' earlier deadline of rolling out the much-sought-after small car in the last quarter of this calendar year, it is believed that the company would space the schedules so that that there are fewer deliveries in the original deadline while more rollouts would happen only in January 2009. However, officially, Tata Motors continues to stick to its earlier announced schedule. To an e-mail query, the Tata Motors spokesperson said: "The Nano will be launched in 2008. The plant at Singur (in West Bengal) is working towards production in the last quarter of the year. Tata Motors has not made any announcements on booking timelines.' As the Nano is targeted at twowheeler customers who typically consider the prospects of a resale in the future, most customers would prefer a 2009 model compared to a 2008 one, said some dealers. Tata Motors managing director Ravi Kant had earlier said that the rollout of the Tata Nano from Singur would coincide with Durga Puja in October. According to the proposed schedule, trial production is slated to start in June-July and regular production after two months. Commercial production, the real thing, is slated to start only in October. However, it has also been reliably learnt that Tata Motors has seen some impact from in the wake of rising inflation and sluggish consumer sentiments. Although logistic snags have delayed construction at the Singur plant in West Bengal, the initial rollout of the car will be done from this unit, said company sources. Tata Motors is also looking at other multiple production units for the Nano, such as Pantnagar in Uttaranchal. The company is considering this as a means to cut transportation costs of the low-margin vehicle. Sources also indicated that Tata Motors is in the process of finalising its dealers across the country. "Initially, only a few Tata Motor dealers will get the Nano dealerships, till the company scales up production,' the sources added. Indications are that the company may take the full money as booking amount and rope in its own finance company to work out competitive finance packages for the Nano. Since interest rates for four-wheelers have been rising, sources said that the company is working on a zero-interest equal monthly installment package. The company, which showcased the Nano in January this year at the auto show in Delhi, plans to produce 2.5 lakh units from Singur in the first phase.