Tata Motors Ltd said that the company plans to set up more outlets in the semi-urban and rural parts of the country to attract first time car buyers to the Nano fold.

The company is emphasising that with a minimum payment of Rs. 15,000, one can actually drive away with a new car, highlighting the compelling value proposition.

The auto major, which recently showcased the CNG variant of Nano, plans to launch it soon in some select markets across the country, Mr R. Ramakrishna, Vice President, Commercial, Tata Motors, said.

Speaking to newspersons here on Friday after the inauguration of four new dealerships of Tata Motors in Hyderabad and Secunderabad at one go, Mr. Ramakrishna said that the dealership expansion was in line with the company’s commitment towards its growing list of customers in the region.

Mr Ramakrishna said “today marks a significant step in our growth strategy for the Indian market. The opening up of new outlets demonstrates close co-operation between Tata Motors, Tejaswani Motors and Detroit Motors. The company accent is on developing and consolidating this network.”

Answering queries, Mr. Ramakrishna said that Tata Motors has not taken any decision to hike vehicle prices. Some of the car makers (such as Maruti and Hyundai) have announced price hikes as the prolonged period of discounts offered during the year to boost sales was not sustainable. This correction was on the cards if one were to factor the increasing cost of production.

“The increase in interest rates has been a dampener for some of the new car buyers. However, with inflation coming down, we see the situation getting better. Yet, the first half of next financial year too will be tough for automotive companies,” he felt.

> vrishi@thehindu.co.in

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