Tata to offer loans on the Nano (IN)

Tata has said that it’ll offer 90% loans for Nano customers in India, in bid to combat tumbling sales. Last month saw the Indian car manufacture sell 509 units, compared to 9,000 in Nov 2009. The firm will also allow customers to take immediate delivery of their Nano from the showroom and opening new locations in smaller cities.

The loans can be fast-tracked within 48 hours, in which Tata hopes will enhance sales. Last month’s figures were caused by customers unable to obtain loans.

A 4 year warranty will come as standard, with a maintenance contract option for 99 rupees (roughly around £1.30) a month also available.

An editor of a major automotive magazine in India, Hormazd Sorabjee, explains why the Nano is falling behind its expensive competitors:

"The bottom of the pyramid continues to be where the action is. But the aspirations of people are moving up. People want to jump into something more substantial.”

When first launched, the Nano was unavailable, turning off dealerships and customer alike due to the inability to examine/test drive the car before placing an order.

Darius Lam, an analyst at J.D. Power & Associates said: “The company has just mishandled the whole thing. First, the company said it was no big deal. Then, it was just some foreign objects.”

An insider has exclaimed that Nano sales are slowly rising. Tata spokesman, Debasis Ray details:

“As we began open sales, our learning was that, even though the Tata Nano is affordable for thousands of customers who do not own a car, it is still a significant decision to enter the four-wheeler category.”

Tata believes that many of the Nano’s 71,000 owners are happy with their car, mentioning its performance, 41mpg fuel economy and spacious interior as the main reasons for purchasing it other than its low price.