Tata Motors has no plans to invest and upgrade Ratan Tata's dream car Nano to meet BS-VI standards, a senior company official said on January 24 indicating that the production and sales of the vehicle would stop from April 2020.
"Nano is produced at our Sanad plant (Gujarat).. ..in January new safety norms came, in April some more new norms will come and in October new safety norms will come and BS-VI is going to happen from April 1 of 2020, so all products may not meet (BS-VI norms) and we may not invest in upgrading all the poducts... and Nano is one of them," President of Passenger Vehicle Business Unit, Tata Motors, Mayank Pareektold reporters.
The entry level car, brainchild of Ratan Tata who envisaged giving a safer and affordable alternative to families riding on two-wheelers, received lack luster response from the Indian consumer. It was launched in 2009 with an initial price of about Rs one lakh. Pareek also indicated that some of the existing products of Tata Motors would also be discontinued owing to the BS-VI norms.
However, he did not specify the other passenger vehicles that would be discontinued. On the BS-VI vehicles, he said it was a challenge for auto makers as the Supreme Court guidelines do not allow car registrations other than BS-VI after April 1, 2020.
"Basically today we (Tata Motors) have 5 or 6 products (in passenger vehicle segment). They will be refurbished and modified. For Industry is the biggest challenge. BS-IV stock should become zero by April 1, 2020," he said. Pareek said during the last 36 months, Tata Motors outperformed the market. For April-December period, the company has grown by 22.4 percent. While the industry grew by 4.4 percent.
Three years back Tata Motors had market share of 2.8 percent in passenger car segment and it has not reached to nearly seven per cent. Currently it caters only 60 per cent of the car market and aims at covering 90 percent by launching new products by 2021-22.
According to him, the lastfestival season was not good in terms of car sales in the country as therewas "stress" in the liquidity marketand as a resultpeople getting loans has become "slower".
On the Electric vehicles, he said though they have technology to develop EVs, there is no enough charging infrastructure available in the country. Pareek on January 24 launched "Harrier," the new SUV from Tata Motors stable in the Telangana market.
To a query, he said the waiting period for the new vehicle is roughly three months.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
