Tata Nano may stage a comeback, as an electric car
Tata Nano, which was released among much fanfare, has lost its steam over the years. Not only have the sales dwindled to an abysmal low, several allegations on the model have made it a tough sell. It has drained Tata Motors' capital and is now a burden on the carmaker. However, chances are, it may get a revival soon- as an electric vehicle. Here's more.
What's giving this vibe?
Several incidents point out that the firm is currently giving serious thoughts about transforming the Nano into an electric model. Dodging questions about its future recently, chairman N Chandrasekaran said that "we have issues we need to sort out. We will take a call which car needs to be stopped." This gives momentum to the theory that Nano is not done yet.
Not letting go
According to sources, Tata Motors has already conducted a test of an electric Nano at its test track in Coimbatore. Chairman emeritus Ratan Tata, who envisioned the car, was present to keep an eye on the proceedings. Not divulging the electric model plan, the firm has confirmed that Nano will not be phased out. Alternative avenues, to reposition it, will be explored instead.
Sentiments in business
Tata Motors COO Satish B Borwankar said "We cannot phase out this car. Sentiments of the company, Ratan Tata and shareholders are attached to it. We are looking at how it can be repositioned." According to analysts, the move to electrify Nano might just work to revive its fortunes, provided it gets released sooner than its competitors.
It's a prestige issue
One of the fierce advocators, of pulling the plug on this money guzzler, was the ousted chairman Cyrus Mistry of Tata Motors. He said that a unanimous decision was taken to phase it out a year ago but surprisingly, its productions continued. It proved that Ratan Tata is not willing to let Nano go. It's more of a prestige issue than a business one.