Tata Nano variants to deal with high fuel price challenges

Tata plans Nano variants to tackle high fuel prices

Even as the Tata Motors is busy just ahead of the roll out of the so-called people’s car Tata Nano, sky-rocketing fuel prices seem to be forcing the Indian automobile giant to look at options that would negate the impact of the price rise. More variants of the Nano might be offered, which can even out the impact.

The Nano variant plans come following fears of a huge negative impact on the cheap car’s sales due to zooming fuel prices. According to chairman Ratan Tata,  the company is working on new variants of its Rs 1 lakh car to offset impact due to the fuel price rise.

What these variants of the Nano would offer, however, is still a secret.

Ratan Tata said that new variants of the Nano are currently under development to meet the new environmental and fuel price challenges, as also the market requirement of several international markets.

The high fuel prices are not going to impact just the Tata Nano – 2008 might be a year of challenges to Tata Motors too, along with almost all automobile companies in the world.

Ratan Tata has been quoted as saying that ‘higher fuel prices will negatively impact both commercial vehicles and passenger car sales.’

The company has been facing opposition for its Singur operations, but it is believed that the Nano plant in Singur would go on steam completely by the last quarter of 2008. As and when this happens, it is expected that the company would expand this plant in its bid to meet domestic and global demand in the future.

Talking of challenges ahead, Tata Motors may have to face many and act strategically in the year ahead. Apart from fuel price increase and the unprecedented increase in material costs in steel and tyres, the company will have to manage the completion of the Singur plant and introduction of the new Nano in the market.

Equally challenging would be the absorbing the cost of the Jaguar- Land Rover acquisition by Tata Motors. All these issues may be seen as posing major hurdles on Ratan Tata’s way ahead. However, with the Nano and the new versions, the company may be seen as having something to cheer about as days go by.