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Tata Motors attempts to revive Nano, launches CNG variant at Rs 2.52 lakh to Rs 2.77 lakh

Ketan Thakkar, ET Bureau Oct 8, 2013, 03.00PM IST
(Tata Nano CNG emax boasts…)

MUMBAI: In a bid to revive its micro-car Nano's flagging sales, Tata Motors, India's largest automotive company by revenue launched on Tuesday the CNG version of the car called Nano CNG emax at Rs 2.52 lakh to Rs 2.77 lakh ex-showroom Mumbai.

Powered by a fuel efficient, state-of-the-art engine, with CNG and Petrol bi-fuel system options, the Tata Nano CNG emax boasts of having the lowest carbon footprint and the most fuel efficient car in India with a mileage of 36 km/kg*.

The CNG version is priced Rs 54,000 to Rs 87,000 more than a conventional petrol engine Nano, which is priced at Rs 1.65 lakh to Rs 2.33 lakh ex-showroom Mumbai. The development of diesel version of Nano is underway and the company is currently putting the Diesel vehicle through a rigorous testing.

Launching the vehicle in Ahmadabad- Ankush Arora- Sr. VP, Passenger Vehicle Business Unit (Commercial), Tata Motors Ltd., said, "At Tata Motors, the core philosophy behind the launch of every new vehicle is anticipating what our customers need and blending it with the best-in-class technology and design engineering."

The Nano CNG emax is the first of the five brands in the emax series of CNG cars that Tata Motors intends to roll out. The Tata Nano CNG emax will be available across all the CNG markets of Delhi, Gujarat, parts of Maharashtra and Lucknow.

Despite discounts and other freebies, Tata Motors has not been able to draw in customers to Nano showrooms and its dedicated Nano plant at Sanand in Gujarat is running much below even half its capacity.

The company's chairman Cyrus Mistry as the AGM in August had said that the company is planning to reposition the micro car as the smart city car.

The Nano, launched as the world's cheapest car, was billed to drive Tata Motors growth in the current decade. However, it has fallen way short of the company's expectation, making up for just 10% of its forecasted monthly volume of 20,000. Nano sales in FY13 fell 28% to 53,848 units.

In the first five months of the current fiscal, its sales were down 76.27% to 8,098 units (vs 34132 units in April to August of 2012). But sales have improved after March, when it fell to three digits. In the last three months, Nano sales have been about 2,000 units per month even as Tata Motors has made aggressive finance offers, facilitated credit card and online purchases to spur sales.

In the first five months of FY-14, the sales of Tata Motors have fallen sharply than the overall market declining 35.54% to 88,709 units versus 137,640 units sold in the same period last fiscal. The company's market share fell to a 9% dropping almost 3-4% in the last one year.

"We are focusing on making Nano a smart city car. We will introduce a power steering option, improve interior and exterior of the car, improve fuel efficiency and target young customers." He said in August. The company will increase the "perceived value" of the car with every subsequent model launch, Mistry had promised.

The company would be hoping that the new CNG version will bring in the incremental volumes in the coming months.

The Tata Nano CNG emax is India's most fuel-efficient car with globally acclaimed CNG kit components installed, claims the company. The sequential gas injection system of the Tata Nano CNG emax, is calibrated with an intelligent advanced Engine Management System (EMS) for smart switching between CNG and Gasoline fuel systems, said the company in a statement on Tuesday.

"This allows the vehicle to sense when the driver needs more power and thus, automatically shifts to gasoline mode. Switching between CNG and petrol driving modes on-the-fly is effortless, thanks to a push-button fuel type selector. Additionally, the Tata Nano CNG emax can also be started on CNG and not on petrol like other conventional CNG systems," the statement added.

Tata Motors says, the Nano CNG emax comes with best-in-class air conditioning, turning radius, passenger space and comfort, handsomely and stylishly appointed interiors. The car is equipped with class-leading safety features like leak detection sensors and interlock sensor that automatically ensures that the engine is switched off during CNG gas filling.

The car's CNG system is intelligently packaged for maximum luggage space and cylinders are smartly fitted under the front seats which do not intrude into passenger or luggage space - an innovation in this vehicle segment, says the company

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