After successfully launching the world’s cheapest small car on Indian roads, the Tata Nano, Tata Motors has now turned its attention to prepare for the global roll-out of the US$2000 compact car. It is not only looking at markets like the U.S., Europe and Russia, but also banking on Latin America and South Asian nations to sell this fuel-efficient car.
Tata Motors, which has a tie-up with Fiat, is well-placed to leverage the marketing and sales network of the Italian car manufacturer across nations, particularly Europe and Latin America. Tata Motors believes that apart from India, developing South American economies like Brazil, Argentina, Chile and Venezuela could be a good market for Nano. For Fiat, Brazil is one of its biggest markets where it has strong dealership network and this may go in Tata Motors’ favour.
Tata Motors had already unveiled its Europe-specific model, the Europa, at the Geneva Motor Show, which it plans to introduce in 2011. Tata Group head, Ratan Tata, had said that though the European version of Nano would have different specifications to the Indian version, it will still remain a ‘people’s car’ (in terms of pricing). Unlike the Indian model, the Europa will be equipped with a sturdy bumper, a more rigid body, an air-conditioner, two airbags and electrically operated windows. Tata Motors already sells its models in Italy, Spain and Poland, and hence is comfortably placed to market its much-awaited model. It is also banking on Russia as a good market.
For Tata Motors, the good news came recently when Nano passed the crash test held in the U.K. Interestingly, it was Nano’s Indian model and not Europa (the model designed specially for Europe markets), which passed the ‘40% offset’ crash test at 56 km/h and the side-impact tests at a high-tech test facility at Birmingham. It is mandatory to clear these basic tests before a car is allowed to be sold in Europe. Similarly, the Nano is headed for the U.S. market in the next couple of years. Tata Motors would have to get safety and emissions certifications before selling Nano in the U.S., where it can take advantage of the Fiat-Chrysler distribution network. Its superb mileage and emissions conforming to European standards would help it become a big draw in the Western markets, particularly Europe and the U.S. that have so far remained glued to fuel-guzzling SUV’s and sedans.
Tata Motors is also looking at South Asia and African markets. While countries like Thailand and Malaysia offer good prospects for Nano in Southeast Asia, in Africa, where Tata Motors is fast progressing, Nano might run on the streets of Nigeria, South Africa, Congo, Senegal and Namibia by 2011.
