Tata NANO, Tata’s one of the most talked about car is one of the precious jewels in Tata’s Crown. Commonly known as ‘People’s car’, this is the world’s cheapest car with all the real features and entities. Practically impossible to believe, but NANO is priced less than half the price of a normal car.
Although it was hard to rely upon the promises made by TATA Motors while launching NANO, but everyone promise that was made was duly fulfilled by the authorities.
No doubt, but one can call NANO a small pack of great happiness.
Some exotic and amazing features of this car are:
- 624 cc engine
- 33 HP petrol engine
- Meets Bharat III Emission norms
- Meets all current safety norms
- Meets all emission criteria
- Pollution emission lower than two wheelers
- Seating capacity more than Maruti 800
The car is priced at 1 lakh rupees and this price is exclusive of Value added tax and transporting charges. So, with all the taxes and overhead charges it will cost approximately 1.34 lakh (at the least).
The target audience for these cars are the middle class of the society. While this class is a good target audience for the TATA Motors on one hand, on the other it is the most risky for the money lenders- the banks.
The risk proportion in this class of society is largest. Initially banks were pretty hesitant in financing car loans for this class but some way had to be carved out because denial of finances was not the way.
After all the thought process and analysing market conditions ,the banks decided to lend money to the buyers of the car TATA NANO. But in no way the security of getting the money back (loan amount) had to be compromised, so some lenders decided upon extending booking finance to the buyers. With a hint of precaution the amount was strategically lend to the buyers. During the booking period, the interest rates were high which eventually were lowered in later years.
This plan proved to be of great success. It not only allowed the interested buyers to reach their dream of buying a car but finance / loan extended by various financial institutions also promoted the car and motivated the target audience to be the new buyer of the product.
But all this was the scenario when the car was initially launched. Today, it has more customers and buyers than before. Success of the car and its increasing publicity has drawn more customers to the product. Consequently there are more buyers and the share prices have achieved a good level. Now, the financial institutions have overcome the fear of extending loan to the middle class and are pretty welcoming.
Be it Bank of India, Canara Bank or Union bank of India, everyone is focusing on the same goal of having more and more share in the pie named NANO financing . And everyone is coming with new schemes to attract more and more customers.
Banks now will be offering interest rates as low as 9.5 % to attract more and more buyers. This offer of low interest rates has been made possible by the low operational costs of TATA NANO. As estimated and expected this would attract increased number of buyers to the extent that there would be advance booking for the loans which will be financed in future.
Lowering the interest rates has been a good move as the banks say it. This will not only allow them to increase their financing share in NANO but it will also give them a good and long lasting opportunity to strengthen their customer base.
Where some of the banks had good news for NANO lovers, not every bank was planning to do the same. ICICI one of the largest private banks has not announced any differential interest rate for NANO and nor has the State Bank of India (exclusive booking agent for NANO) spoken anything about different issue interest rates for NANO.
Seems not only banks but TATA Motors is also working in improving its customer base. TATA Motors entered into an agreement with some 15 banks and non banking finance institutions to have deals and offers for its latest offerings.
As evident from the present scenario, one can easily deduce that NANO is in vogue. It is not only a car for every pocket but also a real one with all basic entities. The advance models are even with a hint of luxury. With all what is available, NANO is a good choice and it has been made even better by the financial aids that have been made available.
It is no time better than this to book a NANO or to buy one.
