Snapshot: Tata Motors seems very keen on re-positioning the Nano. The re-positioning aims to rework the world’s least priced car’s image and along with that re-price the car. Future variants of the Nano will be priced between 1.75 lakh rupees and 3.25 lakh rupees, a tectonic shift from Tata Motors’ “cheapest car in the world” strategy for the Nano. While making the Nano more aspirational, the car maker will continue to focus on the Nano’s value-for-money traits.
Tata Motors is steadily adding new features to the Nano hatchback as a part of the process to transform the car as a smart city commuter for the younger masses. The constant addition of features has also meant that the prices of the car have been steadily inching northwards. While the Nano (base variant) was launched at 1 lakh rupees in 2009, the same variant of the car now retails for 1.45 lakh rupees, a straight 45 % price increase.
On similar notes, the CX and LX variants of the Nano, originally launched at 1.48 lakh rupees and 1.70 lakh rupees ex-showroom Delhi respectively, are now priced at 1.98 lakh rupees and 2.24 lakh rupees. The recently introduced CNG and power steering equipped Nano versions have resulted in the ex-showroom Delhi price of the car further going up to a maximum of 2.65 lakh rupees.
In the future, prices of the Nano can only spiral northwards considering the kind of features that Tata Motors is mulling of adding to the small car. A larger petrol engine, an electric variant and a CVT automatic gearbox equipped variant are the various forms that future Nanos could take. All said, the big challenge that Tata Motors will have to confront is whether the Indian car buyer accepts the new variants of the Nano, at the significantly higher price levels.