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Small Car Nano a Loss-making Product in Highly Price-sensitive Market, says Tata Motors

As there is no line of sight to profitability for the Nano, any turnaround strategy for the company requires to shut it down

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Tata Motors
Cyrus Pallonji Mistry. Flickr
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Mumbai, November 04, 2016: Echoing Tata Sons’ ousted Chairman Cyrus P. Mistry, Tata Motors on Friday said its Nano small car has been “a loss-making product” in the highly price-sensitive market, coupled with low volumes.

Mistry had earlier stated that “as there is no line of sight to profitability for the Nano, any turnaround strategy for the company requires to shut it down.”

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“Considering the attention and excitement it created, project investments were set up for capacities for around 2,50,000 cars per annum. However, unfortunately, and due to combination of several factors, including project delays due to change in location of the factory, and the perception of being a ‘low priced’ car, the volumes initially anticipated did not materialise and utilisation of capacities are significantly lower,” said the car maker responding to clarifications sought by BSE.

In a highly price-sensitive segment of the market, coupled with low volumes, it has been a loss making product, it added.

Mistry had also alleged that the Nano product development concept called “for a car below Rs 1 lakh, but the costs were always above this”. “This product has consistently lost money, peaking at Rs 1,000 crore,” he said.

Tata Motors
A Nano car on display. Wikimedia

The company further said that a major part of the investments in the factory are “capable of being utilised for other products” as is “evident from the production of company’s Tiago cars” in the same factory.

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“As far as development cost and investments in Nano specific dies and toolings are concerned, these have significantly written off, in line with the accounting policies, over the last several years,” the filing said.

Mistry had also pointed out that challenge in shutting down Nano is that it would “stop the supply of the Nano gliders to an entity that makes electric cars and in which Mr. Tata has stake”.

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Responding to that, the company said, “We would like to clarify that the matter is in a preliminary exploratory stage and no arrangement for supply of gliders has been conducted.”

The car maker said that it got approval of the board for its future passenger vehicle product and business strategy, which envisages refocusing its strategy on growing and attractive segments of the passenger vehicle market in terms of volumes and profitability, and “aligning with the changing and enhanced expectations of the consumers regarding contents and features”.

The company also said that it would pursue the refocused long-term strategy. (IANS)

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Mahalaya: Beginning of “Devipaksha” in Bengali Celebration of ‘Durga Puja’

“Mahalaya” is the auspicious occasion that marks the beginning of “Devipaksha” and the ending of “Pitripaksha” and heralds the celebration of Durga Puja

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Mahalaya morning in Kolkata. Flickr
  • Mahalaya 2017 Date: 19th september.
  • On Mahalaya, people throng to the holy river Ganges in order to pay homage to their ancestors and forefathers; which is called ‘Torpon’
  • Mahalaya remains incomplete without the magical chanting of the scriptural verses from the ‘Chandi Kavya’ that is broadcasted in All India Radio
  • The magic is induced by the popular Birendra Krishna Bhadra whose voice makes the recitation of the “Chandi Kavya” even more magnificent

Sept 19, 2017: Autumn is the season of the year that sees the Hindus, all geared up to celebrate some of the biggest festivals of India. The festive spirit in the Bengalis all enthused to prepare for the greatest of the festivals, the ‘Durga Puja’.

About Mahalaya:

Mahalaya is the auspicious occasion that marks the beginning of “Devipaksha” and the ending of “Pitripaksha,” and this year it is celebrated on September 19.

Observed exactly a week before the ‘Durga Puja’, Mahalaya is the harbinger of the arrival of Goddess Durga. It is celebrated to invoke the goddess possessing supreme power! The goddess is invited to descend on earth and she is welcomed with devotional songs and holy chants of mantras. On this day, the eye is drawn in the idols of the Goddess by the artisans marking the initiation of “Devipaksha”. Mahalaya arrives and the countdown to the Durga Puja begins!

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The day of Mahalaya bears supreme significance to the Bengalis. The day is immensely important because on this day people throng to the holy river Ganges in order to pay homage to their ancestors and forefathers. Clad in white dhotis, people offer prayers and take dips in the river while praying for their demised dear ones. The ritual is popular as “Torpon”.

Mahalaya
An idol-maker in progress of drawing the eye in the idol of the Goddess. Wikipedia

As per Hindu myth, on “Devipaksha”, the Gods and the Goddesses began their preparations to celebrate “Mahamaya” or Goddess Durga, who was brought upon by the trinity- Brahma, Vishnu, and Maheshwara; to annihilate the fierce demon king named Mahishasura. The captivating story of the Goddess defeating the demon got popularized with the goddess being revered as “Durgatinashini” or the one who banishes all the evils and miseries of the world. The victory of the Goddess is celebrated as ‘Durga Puja’.

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Mahalaya remains incomplete without the magical chanting of the scriptural verses from the ‘Chandi Kavya’ that is broadcasted at dawn in All India Radio in the form of a marvelous audio montage enthralling the souls of the Bengalis. Presented with wonderful devotional music, acoustic drama, and classical songs- the program is also translated to Hindi and played for the whole pan-Indian listeners.

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Mahalaya
Birendra Krishna Bhadra (1905-1991). Wikipedia

The program is inseparable from Mahalaya and has been going on for over six decades till date. The magic is induced by the popular Birendra Krishna Bhadra whose voice makes the recitation of the “Chandi Kavya” even more magnificent! He has been a legend and the dawn of Mahalaya turns insipid without the reverberating and enchanting voice of the legendary man.

Mahalaya will keep spreading the magic and setting the vigor of the greatest festival of the Bengalis- the Durga Puja, to worship the supreme Goddess, eternally.

                 “Yaa Devi Sarbabhuteshu, Shakti Rupena Sanhsthita,

                     Namastaswai Namastaswai Namastaswai Namo Namaha.”

– by Antara Kumar of NewsGram. Twitter: @ElaanaC