Tata nano's Sales jump

Nano leads Tata's 28% Dec sales jump

Tata Motors will focus on putting its passenger car and utility-vehicle business on the fast track in 2011-12, according to top industry sources.

December ended on a happy note with sales closer to the 20,000 units, up 28 per cent from last year's levels. While the Indica and the Indigo range sold clocked 5,923 and 5,234 units apiece, the big news was the Nano sales hitting 5,784 units.

Nano revival

The Rs 1-lakh car, as it is better known, has had a rough journey for some months now, with sales plunging to 509 units last month. However, company sources constantly maintained that this was only a blip on the horizon.

The recent slew of retail initiatives have helped the Nano's cause, but from Tata Motors' point of view, the car's potential still has not been realised in a country where the penetration levels of automobiles is barely 10 for a thousand people.

“Here's India's cheapest car that has still not reached out to its potential market yet."

The company is now gearing to put a Nano roadmap in place, which will focus on selling it aggressively in smaller towns.

This could take the form of exclusive kiosks and the like, where the car will not share the spotlight with other Tata models.

Internally, the company is believed to be of the view that the Nano can comfortably clock 10,000 units a month, going up to twice that number in 2012-13.

This optimism is based on the fact that a diesel version is due this year, which could just do the trick in boosting sales.

Tata's are primarily in the business of diesel, which is evident in the Indica and Indigo models.

"Once the 700cc diesel Nano hits the roads, it will grab the fancy of the market."

For some time now, the company has not given enough attention to its UV business and numbers fell alarmingly in the process. If December is an indication at 2,765 units, a turnaround strategy could be on the anvil.

The Sumo and the Safari have lost out to competitors over the months, but now with the Aria part of the product portfolio, Tata Motors should begin putting its house in order all over again.

“It is not the easiest of tasks for a company with such a diverse product range to ensure that all click simultaneously. However, there is a serious intent to give a fillip to cars and UVs."

The biggest comfort level is that the bread-and-butter commercial vehicle business is doing well. Likewise, Jaguar and Land Rover have been posting good numbers and contribute to nearly 60 per cent of Tata Motors' bottomline.

Strategy: Tata Nano

Now, a Nano at zero down payment

You can now walk into the showroom, collect a Nano and pay the first instalment the next month.

In a bid to increase the car's sales, Tata Motors is now facilitating a zero down payment option.

Sources said that the 100 per cent finance scheme has been operational for sometime and will go on till December-end.

There is zero down payment option. It depends on the profile of the customer too. Tata Motor Finance is already offering it.

It is up to the financiers to offer 100 per cent financing.

14% Interest:

Tata Motors Finance charges 14 per cent interest for the 100 per cent loan scheme. A sales executive at one of the Mumbai dealerships said customers have to only make a payment of Rs 20,000 for RTO charges and insurance.

If customers make a down payment of approximately Rs 40,000, then there is scope to reduce the interest rate even further.

The decline in Nano sales to three-digit figures has triggered a host of marketing initiatives.

On the product front, Tata Motors now offers additional safety features and a four-year warranty, while at the financing end it offers fast-track processing of applications and lower interest rate.

More selling outlets

As for retailing, the company started open sales in 12 States and it will extend to all States by March. Plans are on to open 1,000 selling outlets in the short term.

Tata Steel

Tata Steel eyes more acquisitions:

Tata Steel the world’s number seven steel maker, is looking at further acquisitions as it boosts capacity to meet booming demand at home and overseas, a senior official said on Thursday.

“Our portfolio will have a balanced mix of greenfield and acquisition,” Indronil Sengupta, chief executive for Southeast Asia projects at Tata Steel, told Reuters on the sidelines of a business briefing conference.

“Right now, we have Europe, Southeast Asia and south Asia and in terms of new operations, we’re constantly looking into countries in terms of steel making and in terms of raw materials.”

Tata Steel has a global capacity of around 30 million tonnes — two-thirds of which are from its European unit, Corus, a quarter from its growing Indian operations, and the rest from units and joint ventures in Thailand, Singapore, Vietnam and the Philippines.

Tata Steel bought Corus, Europe’s second-largest steel maker, in 2007 for $13 billion, in the biggest overseas acquisition made by an Indian company.

Earlier this month, Tata Steel reported strong earnings for the September quarter on better demand and higher prices and said it would raise up to $1.6 billion in additional capital to trim debt and invest in its European business.

The company is in the process of securing clearances for a nearly five-million tonne integrated steel plant in Vietnam and is also working to boost its capacity in India, said Sengupta.

The steel project in the central Vietnamese province of Ha Tinh will make use of iron ore from a nearby mine, with the first phase expected to be completed in 2-1/2 to three years, he said. Tata Steel is taking a 30 per cent equity stake in the mine and 65 per cent interest in the steel plant, he added.

In India, capacity is expected to rise to 10 million tonnes in the near future from around 7.5 million tonnes currently, he said. Tata Steel will also build a 12-million tonne a year steel plant in Jharkhand and other facilities elsewhere, including in Orissa.

“India is a growing market and we will not lose our market share there. Our operations in India will grow,” said Sengupta. Sengupta said he expected global steel demand to continue growing into 2011 as long as Asian economies remain strong, helping cushion any impact from further shocks in the euro zone.

“Asia is driving the growth today. China, India and Southeast Asia are not showing any signs, at least for now, of a dip. So, as long as this part of the world is okay, it will keep the world afloat.”