AMG1

Extended warranty on Nano-- will it boost sales?

Recommended Posts

I think this contract is the same as chevy maintenance package .

Also this warrenty offer is excellent but TATA should do some good marketing as still many people don't know that Nano is now freely available .

Share this post


Link to post
Share on other sites

It will boost confidence among prospective customers. as far as fire incidents are concerned , Tata must have corrected itself on this point after several mishaps.Fire accident may happen in any car.

Share this post


Link to post
Share on other sites

Frequent incidents of Fire in Nano made public to run away. It will take some more time to fade away this dent on image of Tata Nano.

Tata Nano is already a successful vehicle because Tata has not only made a consumer segment who wants to shift from 2 wheeler to 4 wheeler but also attracted a consumer group who always wanted to own an alternate vehicle but didn't wanted to spend much.

The extended warranty is a good offering but one need to read the fine print.

Share this post


Link to post
Share on other sites

As I had posted earlier (on 02.12.2010, reproduced below), TATA MOTORS is doing something about the issue. 

 

I also saw in ET that Tata Finance wil give loans at cheaper prices than even loans for a two wheeler.  Similarly, they are also finalising deals with SBI and a couple of other banks to give loans on exactly similar lines on financing a two wheeler. 

 

They have increased the `touch points' to over 2,000 where customers can see, feel and take a TD. 

 

They are also taking all their Nano dealers for a training cum awareness programme so that they can explain things better to the customers.

 

National wide advertising compaign had started.  Regional languages are also tapped for such advertisements. 

 

It appears that they should have done all these before the launch and not now.  But, anyway, better late than never. 

 

Good corrective actions by Tata Motors.

 

 

QUOTE ::

 

 

Posted : 02 Dec 2010 at 11:03am

I am surprised too.

How come a car which got huge bookings, lottery allotments, very long waiting list etc., etc., could end up with such a low figure of just 506 ?

 

Something needs to be done urgently by the Tata Thinktank. 

 

One of the main reasons seems to be the reluctance of banks to finance the prospective buyers (low income earners) who are finding it very difficult to get loans, as they are unable to produce IT Returns, salary slips etc.,.  And, without these basic documents, the banks are refusing loans for such class of customers who are the prime target group of Nano. 

 

Tata Finance needs to do a quick assessment and come out with suitable finance options.

 

UNQUOTE :: 

 

Posted: 02 Dec 2010 at 11:03am

 
 

Share this post


Link to post
Share on other sites

 

The dwindling sales figures for Nano have been a major concern for Tata Motors. After the nose-dived sales figure of just about 500 cars in November, Tata motors officials are ready to do what it takes to increase the sales.

It has been reported that Tata Motors is employing the services of global consultancy major Accenture to review issues pertaining to production, quality standards and supply chain management.

Accenture will help Tata Motors to develop a new grounds-up strategy which will consist of a new marketing strategy and sorting out other product related issues. The aim is to review the overall processes within Tata Motors and compare it with its rivals. Accenture in the past has assisted Tata Motors on analyzing at least one other product.

Tata Motors is offering a 4 year/60000km warranty on the Nano, up from the existing 18 months/24000km warranty. Existing owners will be upgraded automatically to this scheme. The company is also offering an optional maintenance contract for a sum of 99 rupees/month, making it one of the cheapest cars to maintain in India.

Read More -->

Share this post


Link to post
Share on other sites

I think auto co's will be keenly watching; I think there's always an inherent risk at targeting the "base" of the pyramid. With input costs (and costs of doing businesss in India) going through the roof I think small cars will find it extremely difficult to hold their price point for long. Unfortunately for Tata the learning curve is getting 'steeper'. If the base of the pyramid is not taking the 'bait' I think Tata needs to refurbish the interior and take it to the urbanites. I think Tata's main rival would be it's own 'base' variant Indica Xeta GLE and the Alto. Indians have started to aspire for something more than "Dhal-Roti", thats why the interest in the cheapest car has started to wane. 

Share this post


Link to post
Share on other sites

Does this car have seatbelts ? For a 600 cc engine making only 32 hp ,it should have great fuel economy of atleast 15 city and above 20 highway because my 2000 cc turbodiesel auto Chevrolet Cruze gets 17 kmpl with 150 hp.

If it seriously has to complete with two wheelers,it should have awesome fuel economy . Sadly the FE it gets is comparable to cars and not two wheelers.

For the same price,anyone can get a 2-3 year old Hyundai Santro/Alto which is crashworthy.

Share this post


Link to post
Share on other sites

The trick is working,people are buying the People's car,when I first time TDen a Nano,the things that amazed me were:

Space,AC,build quality at the price.

And the things that amazed me more were:

Handling was simply horrible,the car feels too much planted on the road,even more planted than those sugarcane carrying trucks who turns turtle anywhere,brakes have the bite as they can make the car bite any person or vehicle who comes in front by-mistake,as suggested by Durango Dude,life insurance must be offered with a Nano(This will also help Tata-AIG) with tagline Nano ke saath bhi,Nano ke baad bhi..

After the Nano I mistakably drove my Laura tsi,and I was really amazed to see that how powerful the Laura is and it felt even more better,so if you feel your car is loosing the grunt then just Have a spin in a Nano,and see you will surely start loving your car..smiley36.gifTSiVipul2011-02-01 09:55:11

Share this post


Link to post
Share on other sites

@ TSiVipul

Very funny dude.

I think I would have to spare sometime to experience it.

Seriously, has the car passed crash tests in countries other than India esp. USA since even the MS Swift failed US crash tests conducted by the IIHS.

Share this post


Link to post
Share on other sites

@Ragav2

Why do you need a crash test when you have a car which is very low on cost of anything like power,FE,space at the price and sadly LIFE/SAFETY too.

But lets be optimistic,Nano has an advantage in terms of safety,if the car meets a fatal accident there is no need to go to hospital,see Nano even saves the medical bills....but sadly at the cost of LIFE...No more comments.

Share this post


Link to post
Share on other sites

Why do you need a crash test when you have a car which is very low on cost of anything like power' date='FE,space at the price and sadly LIFE/SAFETY too.
But lets be optimistic,Nano has an advantage in terms of safety,if the car meets a fatal accident there is no need to go to hospital,see Nano even saves the medical bills....but sadly at the cost of LIFE...No more comments. [/quote']  BTW, have you any data to support your claim regarding nano a unsafe car? Mean how many number of accident you know where the nano proved to be unsafe execpt the fire incidents which happened almost with all cars sometime.

How you can compare a Laura TSI with nano. And what you expect from a car which is almost just double the price of a bike, which the most unsafe vehicle(2wheeler) with no protection all together. Aren't your comments unresonable and unrelated to the current topic being discussed here regarding sales numbers.One can not expect much from a low cost car like nano.
ashikawa2011-02-01 10:29:09

Share this post


Link to post
Share on other sites

@ashikawa

I don't have any data,but have experience..

The very first day I drove the Nano.I took it to 60kph,then from nowhere came a biker in front and the Nano,on braking(Hard)simply skidded the hell out of its nose and gave the biker a good driving lesson of not crossing the road in front of any vehicle.

And surely I can have a bet over the issue that even my Pulsar 200 has a better braking(in fact it would have stopped in the 3/4th of the distance) because the distance the Nano skidded was simply too far for a car.TSiVipul2011-02-01 10:38:06

Share this post


Link to post
Share on other sites

If u design a car, u should design a car and not a golf cart regardless of price. If its a car, then it should pass at least normal crash tests leave alone the strict ones conducted in USA (NHSTA and IIHS ) and Europe( Euro NCAP).Having heard that the 2006-10 Suzuki Swift didn't pass IIHS crash tests are itself a blow and thats why the 2011 Swift has been designed to pass that test.

Share this post


Link to post
Share on other sites

@ragav20693

The choice of buying nano rests with the buyer. Tata has not made it mandatory for anybody to buy a nano. Alto sold in maximum numbers in December 2010 in the whole world. Even though it is not the safest car in the world, might have not passed any crash test.Still it is india's biggest selling car. And indians consider it reliable, sell numbers are the proof. Instead criticising a innovation which is acknlowleged by the whole world, one must approach Tata with his/her ideas/suggetions to make it a perfect product, if he thinks it worth. Besides the increasing sell numbers is the proof that it is accepted by the customers as a product worth buying.

Share this post


Link to post
Share on other sites

@Ashikawa

I agree with you,it is also a fact that Nano is an upgrade for the two-wheeler owners.Numbers do prove it,when it comes to Alto,then I feel that Alto is also weaker on the safety and space front,but at least it is a car and behaves like a car.Thats the only reason for the numbers that Alto is achieving.

Share this post


Link to post
Share on other sites

@Ashikawa

I feel that Alto is also weaker on the safety and space front' date='but at least it is a car and behaves like a car. [/quote']

This is Nano bashing at its best.

What does it mean: Nano is not a car. Around 70k people have so far bought Nano. What do they think about Nano- a two wheeler or a moving box?

Just because Alto outsells Nano, it does not mean that Nano is worthless. It simply means that people believes Alto suits their requirement more than Nano. Or that, most Alto owner may have better purchasing power than Nano buyer.

Nano is good enough to be called a car: many expert review (ACI etc) supports this statement.itssanguine2011-02-01 11:57:18

Share this post


Link to post
Share on other sites

The extended warranty is a good step for confidence building among the  customers.

But to really boost sale I feel that Tata should come-up with Tata Nano V2 having more powerful petrol engine , bigger tires and some of the styling borrowed from Nano Europa.

Share this post


Link to post
Share on other sites

In my views,the Tatas must firstly introduce front disk brakes in Nano+wider front tyres+a fuel tank of a larger capacity+a fuel filler on the exterior part of body+a boot with an opening at the back(instead of that small space behind the rear seat,and you need to fold your rear seat to load your luggage).

Though this may raise the price to an extent,but sales may rise too.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...