Tata Nano Sales Rose by 1,136% in December

In an effort to boost sales of its US$2,900 Nano micro car, India's Tata extended the warranty and offered easier financing in December, while it also launched a new advertising campaign that included a TV spot.

It turns out that this was a smart move, as sales of the Nano spiked reaching 5,784 units, which represents a 1,136% increase over the 509 units the company shifted a month earlier. This is still below the 9,000 monthly sales record achieved in July, but it seems that the Nano is back with a vengeance for 2011.

The warranty has been extended to four years or 60,000 km (37,282 miles) and clients can opt for a US$2 monthly maintenance option, which, coupled with the opening of new sales points and the upcoming nationwide distribution plan, should keep the momentum going.

�Tata Motors is now focusing on the Nano because its reputation is riding on it�, said Umesh Karne, a Mumbai-based analyst with BRICS Securities Ltd., who has a �buy� rating on the stock. �Measures such as easy financing and the maintenance offer have reassured customers�.

Last but not least, the Indian maker also promised to retrofit all Nanos with revamped exhaust and electrical systems in order to prevent more cars bursting into flames.

By Csaba Daradics

Source: Bloomberg

VIDEO: Tata Tries to Boost Nano Sales with New Ad

As previously reported, Tata Nano sales in India have dropped significantly in the past few month, with just 509 customers opting for the US $2,900 micro car, down from 9,000 in July. It seems that Indian buyers have higher aspirations and are moving away from the Nano, as the nation�s market is booming. Reliability issues and a few spontaneously combusting units didn�t help sales either.

To mend the situation, the automaker has extended the car�s warranty and launched a new TV ad, depicting the Nano as the most lovable thing of Earth. Hit the jump to watch the commercial.

By Csaba Daradics

Source: Youtube , Via: Indian Autos Blog

_______________________________VIDEO_______________________________

India's Car Market Booming yet Customers Show Little Love for Tata Nano

Sometimes being cheap and cheerful just isn�t enough. Production delays, land debates and questions over occupant safety are killing the Tata Nano faster than an unexplained engine fire. India�s people car is struggling in spite of the nation�s booming car market and a low asking price of just US$2,900, half of what its nearest rival costs.

With economic growth at a staggering 9% per annum and a 22% year-to-date increase in car sales, Tata must have felt it was onto a sure thing. Things started out good, with 200,000 advanced orders for the sub-subcompact before its 2009 launch.

However, sales have been flagging these past four months with the Indian carmaker selling just 509 Nano�s in November, down from 9,000 in July.

India�s bestselling car is the US$6,200 Maruti Suzuki Alto. With a bigger engine, more spacious interior and longer track record than the Nano, many buyers prefer the Alto in spite the fact it costs more than twice as much. With 30,000 units sold in November, the numbers seems to agree. Even the US$7,800 Hyundai i10 is outselling Tata�s golden child.

Hormazd Sorabjee, editor of Autocar India, explains why the Nano is falling behind its more pricey competitors:

"The bottom of the pyramid continues to be where the action is. But the aspirations of people are moving up. People want to jump into something more substantial.�

At the time of its launch, the Nano was unavailable and dealerships and many customers were turned off by the inability to inspect / test drive the vehicle before placing an order.

It�s uncertain whether the Nano�s poor domestic sales will affect Tata�s move into foreign markets such as Europe and South America.

The four door, five seat Nano is the branchild of Tata Group Chairman Ratan Tata. His brief was for a car that cost just 100,000 rupees (US$2,200) and would appeal to those who previously could only afford a motorcycle.

However, the forced closure of one of Tata�s factories in West Bengal and the subsequent relocation caused delivery delays and the spontaneous combustion of several Nano�s in the past have dampened the Nano�s reputation.

Darius Lam, an analyst at J.D. Power & Associates, remarks on the latter:

�The company has just mishandled the whole thing. First, the company said it was no big deal. Then, it was just some foreign objects.�

Like many in the automotive community, Mr. Lam does not believe Tata has done enough to investigate the cause of the fires and reassuring the public that it�s been properly addressed.

To count the flagging sales, Tata is allowing buyers to take immediate delivery of their Nano from the showroom and opening new locations in smaller cities. The car�s warranty has been extended from 18 months to four years, while the company is stressing the Nano�s power and durability to assuage the public�s grievances.

A company insider has stated that Nano sales are back on the rise. Company spokesman Debasis Ray elaborates:

�As we began open sales, our learning was that, even though the Tata Nano is affordable for thousands of customers who do not own a car, it is still a significant decision to enter the four-wheeler category.�

It is believed that many of the Nano�s 71,000 owners are happy with their car, citing its performance, 41 mpg fuel economy and spacious interior as the main reasons for purchasing it other than the low price.

Even so, many analysts believe that unless the brand makes further strives to improve safety and public perception, the Nano will still lag behind its Korean and Japanese competitors in the Indian market.

By Tristan Hankins

Via: New York Times

Toyota Tries to Break Indian Market with New Low-Cost Etios Sedan

The world's largest automaker, Toyota Motor Corp., is eyeing emerging markets with a new low cost model that was unveiled this week in India. The production version of the 2010 New Delhi Show Etios Concept is available at launch as a four-door sedan model, but will be joined by a five door hatchback called the Etios Liva in April of 2011.

The company said the Etios has been developed specifically for Indian customers and will be built at a plant in Bidadi, near Bangalore. However, Toyota eventually plans to offer the small sedan in other emerging markets such as China, Brazil, Thailand and possibly certain regions of South America.

The 4.265mm (167.9-in.) long sedan boasts a rather large boot with a luggage space of 595-liters and is powered by a newly developed 1.5L, 16V DOHC engine coupled to a 5-Speed manual transmission. The Etios sedan will be available in four variants, J, G, V and VX, with prices ranging between 4.96 Lakhs and 6.86 Lakhs making it the company's most affordable offering in India.

Commenting on the launch of the Etios, Mr. Akio Toyoda, President TMC said: �India is a key market for our overall strategic growth plans, and the launch of the Etios is definitely a milestone not only for Toyota in India but for Toyota globally."

"We at Toyota believe, �the road makes the car� and the Etios is a product of real-world testing on roads across India. Our testing has covered a hundred thousand kilometers on every kind of road that Indian drivers encounter, from Kolkata to Mumbai, from the Himalayan foothills to the tip of the Indian peninsula

According to JD Power, Toyota sold a little over 60,000 cars in India through October, compared to 870,000+ sales from Marutti Suzuki, which is the market leader in the country.

_______________________________GALLERY_______________________________

Honda Brio Prototype Previews New City Car for Asian Markets

As a follow up to the New Small Concept model showcased this past January at the Auto Expo 2010 in New Delhi, India, Honda revealed the pre-production version of its new small city car called the Brio at the 27th Thailand International Motor Expo (press day: November 30, public days: December 1-12.).

Developed for Asian markets and scheduled to be introduced in Thailand and India in 2011, the Brio has a small footprint measuring just 3,610mm in length, 1,680mm in width and 1,475 mm in height. Even though the Brio keeps the basic styling theme of the concept car, the pre-production prototype's design has been watered down with the new grille looking like a last minute addition and a not very attractive one at that.

The mass-production model, which will be an entry-level car in newly emerging markets, Honda will develop unique versions for Thailand and India to reflect different customer needs in those markets.

Honda said that the Thai model is scheduled to be introduced in March 2011 with a starting price of approximately 400,000 baht or about US$13,300. It will be powered by a more fuel efficient engine returning a combined consumption of less than 5 lt/100km [47.0 mpg US].

For the Indian model that is planned to be introduced within 2011, the Japanese automaker said the engine choice will reflect the need for "a good balance between vehicle performance and price."

�Honda would like to expand the joy of mobility to more customers in Thailand, India and other Asian countries through the introduction of a new small vehicle with compact and highly efficient packaging by utilizing our own experiences cultivated by motorcycle business here in Asia,� said Takanobu Ito, President and CEO of Honda Motor.

_______________________________GALLERY_______________________________

Wipro University

From the July/August issue of Fast Company (p. 48):

When you walk around the Bangalore campus of technology-outsourcing giant Wipro, something feels familiar . . . At lunchtime, young employees (average age: 27) swarm into cafeteria cliques, or stream into computer labs, or exit en masse from one three-story lecture hall into another. Oh, that�s right, it feels like college.

So, the company that�s the poster child for outsourcing tech-support seems to be outsourcing education as well?

A span of buildings is devoted solely to education, with all the library, classroom, lab and lecture-hall trappings of a university. The expansive offerings, ranging from Japanese to advanced engineering, rival those of many universities in the United States. There are 300 professors on staff, who typically earn more than they would at Indian universities, and hundred more are �shared� with top local schools.

And they've devoted a huge amount of resources to this? And the professors earn more than they would at a university?

�Today, we pick youngsters who aren�t fully trained, bring them to campus, and train them,� says Pratik Kumar, executive VP of human resources. �There is a minimum of 12 to 14 weeks in our methodologies, technical knowledge, and of course, languages and accents. Many employees study longer.�

And all employees receive 12-14 weeks of paid training when they start? Sort of like life-long learning?

After introductory classes . . . most employees are enrolled in mandatory development training . . . The second track is voluntary graduate-level coursework, such as Friday and Saturday MBA programs and training in computer skills, leadership, and management. . . . The courses, says Sreekala Ramamurthy, a former university professor and Wipro�s general manager of talent transformation, are a way to limit job jumpers.

And after that initial 12-14 weeks, they continue to get on-going education and training, with an option for even more advanced training? And they have a position titled, �General Manager of Talent Transformation?�

The Bangalore campus gets 350 new employees every Monday; all need at least 45 full-time school days before they become billable employees . . . �We have the physical space for up to 5,000, but the bigger issues is how to scale the faculty to that number of students,� says Ramamurthy. She points out the two-way video cameras in an auditorium, which connect to the Chennai campus, so professors can teach twice as many students. She then nods to small room across the hall. �That�s a professor�s studio, where he can teach eight or nine centers at once.� Student-teacher ratio: not a priority at Wipro University.

And they�re trying to figure out how to scale it?

Hmmm. General Manager of Talent Transformation . . .