Tata: Branding Nano As “Cheap” Was a Mistake

Former Tata Motors Ltd. Chairman Ratan Tata says it was a mistake to promote the company's ultra-low-price Nano sedan as a "cheap" car. He says the $2,800 car, which debuted in 2009, should have been marketed as "affordable."

He adds that delays in launching the car while its manufacturing site was relocated also hurt demand by allowing unfavorable rumors to arise about the car.

Tata originally expected demand for the Nano to reach 1 million units. But demand never came close to that goal. The company bolstered the car's value by lengthening warranties, offering special financing, adding more features and adopting sturdier components. But last year sales totaled about 17,000 units.

In May Tata rolled out the upscale GenX Nano, which it described as a "make or break" next-generation of the car priced at $3,100.