Tata hits the road as Nano sales sag

As sales of Tata Motors' Nano, that was supposed to take the world by storm, sputter group chairman Ratan Tata himself seems to have taken over the driver's seat. Apparently disappointed over his dream car not getting the expected fillip, he is calling on all major dealers in the country and motivating them. Probably trying to encash the charisma attached to his personality for wooing the buyers, he is also interacting with Nano owners and seeking their feed back.

On Thursday, Tata was in Nagpur when he visited both M/s A k Gandhi Cars and M/s Jaika Motors, the two Tata dealers in city. He handed over the keys to new Nano buyers and talked to old ones. Prior to Nagpur, paid a similar visit to Pune and is headed for Lucknow from here, said a source related to tour.

However, he also tried to ensure that the trip remains a low key affair with media kept strictly out of bounds, even deploying musclemen for the job. Sources said he may also go to towns like Bijapur and Guwahati.

Nano sales for July have come down by 64% to 3200 units against same month last year. The dealers in Vidarbha have sold almost 2,500 cars since its launch two years ago with a monthly average of 150.

"Since Nano is Tata's brainchild, he is taking personal interest in promoting its sales which are on a decline. So far the car has not made enough inroads into the desired class of buyers-the middle and lower middle class. It continues to be bought as second vehicle in families already owning one car than generate demand from the masses," said a source.

Market sources said Tata needs to sell at least 1 lakh cars a year to break even while the tally now is close to 80,000. With Sanand plant with a capacity of 2 lakh cars per annum getting ready, this is a cause of concern for the company, said one of the suppliers. It was surprising for the dealers too to have Ratan Tata himself coming down to car showrooms.

Accompanied by top officials, he held long meetings with the dealers in which select customers were also present. His major thrust was on selling Nano saying that the company would offer all support in the effort. "Tata said the company will have a flexible stance in promotion schemes and a cash discount scheme is also being mulled," said A K Gandhi of M/s A K Gandhi cars. "Stand alone dealerships of Nano will also be soon opened in semi-urban areas. We plan to start one at Katol," he added.

Nano sales may be a dampener but Tata's visit certainly lit up the mood on a rainy Thursday morning. Eager Nano owners waited to meet him. A woman among them asked if Tatas could come up with a gearless Nano. He replied, one was designed but it could not have fit into low price structure. A major complain was about lack of boot space. Tata answered them all.

Among the curious visitor was also a Buddhist monk who wanted to offer him flowers. Back at Hotel Sun 'n' Sand, a real estate agent caught up with him to gift a CD about his business. A young girl who followed him all the way from M/s A K Gandhi Cars, finally got an opportunity to meet him as he walked out of the hotel to catch the flight. The girl asked for an autograph to which he responded with a gesture of blessing.

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