The Tata Nano, the cheapest car launched in India in a decade, is likely to exit the market soon.
Dealers across the country have stopped placing orders for Nano for the last 3-4 months as demand for the car continues to decline.
Sources inside Tata confirmed that production of Nano was slowing down in favour of other mass-production models like the Tiago.
Tata Nano likely to be phased out
Ratan Tata's non-viable dream
The Tata Nano was launched in 2009 as part of then-Tata Group chairman Ratan Tata's dream of providing a car to the masses. It was priced at a little over Rs. 1 lakh. Now, the Nano costs Rs. 2.25-3.20 lakh (ex-showroom, Delhi).
Nano production sees a steep decline
According to a source, Tata Motors produced 1,299 Nano cars in the first seven months of FY18 as opposed to 5,380 units in the same period last year.
According to a Business Standard report, Nano sales are down to two digits - Tata Motors dispatched 180 Nano cars to sales outlets in August, 124 in September, and only 57 in October.
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Nano was a major issue in Mistry's ouster
Production of the Tata Nano was one of the major issues which led to the ousting of Tata Group ex-chairman Cyrus Mistry. Mistry had cited mounting losses, cumulatively Rs. 6,400 crore, to be the key reason behind the poor performance of Tata Motors.
Tata Nano takes a new, electric avatar?
However, if Autocar India reports are to be believed, the Tata Nano might not entirely disappear.
The magazine reported that an electric avatar of the Nano, called the Jayem Nano, is set to be launched on 28th November.
The Jayem Nano will be produced jointly by Tata Motors and Coimbatore-based Jayem Motors wherein Tata will supply the shell, while Jayem will handle the rest.