Nano to enter Nepal once demand satiates in India

Tata Motors is India´s largest automobile company with revenue topping US $8.8 billion last year. It is the world´s fourth largest truck manufacturer and second largest bus manufacturer. It also created a revolution in the world auto market by launching the Nano at the meager price of INR 100,000, dubbed the cheapest car in the world. Myrepublica.com recently talked with Atul Kumar Dhagat, head of Tata´s International Business, Passenger Car Business Unit on the company´s performance in Nepal, its marketing strategies and Nano´s entry into Nepal.



Excerpts:



Myrepublica.com: How important is Nepal for Tata Motors?



Atul Kumar Dhagat: Nepal is one of the important markets for Tata, both for passenger cars and commercial vehicles. We have been selling cars in Nepal for the past 25 years and in all these years we have developed a deep emotional attachment with this country. I am actually here to launch a newer generation of Indica cars called Vista. And Nepal is the first international market where we are launching this car. This also shows the priority we give to this market.



Myrepublica.com: Are there any plans to set up a manufacturing unit in Nepal?



Dhagat: That depends on the demand the local market can generate. Although sales of Tata´s passenger and commercial vehicles are growing in Nepal, the current volume is not enough to justify the need for a manufacturing unit. And, since one of the advantages we have with this country is the geographical proximity, we haven´t seriously contemplated this subject. But if competition grows and other car manufacturers start producing cars in Nepal, we will not lag behind.






Myrepublica.com: Demand for Tata´s passenger cars seems to be falling lately. Do you have anything to say?



Dhagat: Yes, Hyundai overtook us last year and became number two in the Indian passenger car market. But we are coming up with new models in the coming years and we are sure we can surpass them and regain the lost position. However, customers should keep in mind that although the price range of our cars is similar to the those manufactured by our competitors, like Hyundai and KIA, we give a much better value pack to consumers. For instance, our cars have a powerful engine and better safety features than other contemporary cars available in the market. They give better riding comfort, come in very good shapes and offer more space.



Myrepublica.com: What kind of marketing strategies is Tata planning to adopt to increase sales of Tata vehicles in Nepal?



Dhagat: As far as multi-utility vehicles are concerned, we are the market leaders in Nepal. And we will be focusing on enhancing sales of these vehicles. We are currently operating from around 11 places and we are further expanding our network throughout the country with the help of Sipradi Trading, the sole distributor of Tata vehicles in Nepal. We are planning to sell 1,000 passenger and utility vehicles in the Nepali market in the next fiscal year and with these expansion plans we think we can easily meet the target.



Myrepublica.com: Lastly, when are you planning to commercially launch the Nano in Nepal?



Dhagat: The Nano was launched in India in March. You must have heard that bookings of more than 200,000 units were made soon after that. We are planning to start delivering the cars from July onwards. There is huge interest in Nepal regarding this vehicle. But we would first like to satisfy demand created in India. We will then start its distribution in Nepal. So it would be premature to talk about that now.