India's Tata Motors is considering the possibility of global licensing of the production of people's car Nano.
GENEVA: India's Tata Motors is considering the possibility of global licencing of the production of people's car Nano and would position the ultra-cheap vehicle in foreign markets as just what it is an affordable four-wheeler.
Although the company has no plans for now to tap the overseas market for Nano, which is due for commercial roll-out in India in the second half of this year, Tata Group Chairman Rata Tata said here that "it would just take a decision to go (abroad)".
He also said entry into the US was important for the company, as "it is the world's biggest car market". Auto sales in the US has, however, been anything but encouraging.
General Motors and Ford reported a 13 per cent and 6.9 per cent drop in sales, respectively, in February. But at a price tag of USD 2,500 or Euro 1,700, Nano could revolutionise sales in developed markets, where hatchbacks sell at anything over USD 9,000.
As a preparation to take Nano abroad, Tata said the company would also consider franchising production of the Rs 1,00,000 car, which was previewed at the Geneva Motor Show here.
"Every decision must be based on demand for the car. If we cannot meet it, we will look at licencing manufacture," Tata said.
The company is open to the idea of having franchise manufacturing units, by selling licences to young entrepreneurs to make the car. Tata Motors' upcoming plant at Singur in India, from where Nano is planned to be rolled out, would have a capacity of 250,000 units per annum when fully operational.
The car, the world's cheapest, is due for commercial launch in the second half of this year, but Tata said there was no scope for reducing the price further.
"I don't think that would be fair. We said it will be a Rs 1,00,000 car. We kept the promise. We didn't raise the price even when cost of inputs like steel went up," he said in reply to a question whether customers can hope to get Nano at an on-road price of Rs 1,00,000 on account of a four per cent cut in excise duty in the Budget.
During Nano's unveiling in New Delhi in January, Tata had said he had kept the promise of keeping the price (ex-showroom) of the base variant at Rs 1,00,000.
Whenever it is launched in markets abroad, including Europe, the 623 cc, 33-horsepower engined car would continue to be positioned as an affordable family vehicle, Tata (70) said.
"It's positioning is the most obvious one. It would be a very low cost, totally safety compliant vehicle at a price that was not available earlier," Tata said, adding that as far as Nano for Europe and other developed markets are concerned, "there will be evolution," including different versions.
He, however, hastened to add that Tata Motors would first address what it set out to do before looking to tap the overseas markets -- meet the demand back home.
Since its unveiling in January, the Tata Motors' website has received 15 million feedbacks on the car, making the company portal one of the most visited by netizens, Tata Motors Managing Director Ravi Kant said.
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