Swipe Your Credit Card, Drive Away 'Nano'

In view of falling demand for ultra-low cost Nano car, Tata Motors has introduced a new marketing scheme  called ‘Swipe and drive away’, which enables purchasing through credit card. Under the offering, customers can drive off with the car on the same day.

“Customers can also convert the entire amount in monthly instalments at zero percent interest over a period of 12 months,” a company press release said. The EMI would be Rs 8,333 per lakh.

The scheme also offers credit period options ranging between three to twelve months. “This offer will enable customers to own a car in the fastest and hassle-free manner,” Tata Motors passenger vehicles business unit president Ranjit Yadav said.

Tata Nano has partnered with Axis Bank, HSBC Bank, ICICI Bank, Kotak Mahindra Bank and Standard Chartered Bank for the scheme, which can be availed of at 75 Tata Motors dealerships in 26 cities.

Cars account for a third of the domestic business where Nano accounts for only 7% and UVs another 6%. Sales of the Nano fell by a whopping 77% year on year in the December quarter to just 4004 units (17735 units) while passenger cars were down to 37,235 units (50,414 units).

The company has also launched a unique buy-back programme for its Manza sedan offering buyers an assured 60 percent return on the purchase price of the car after three years.

Tata Motors has already cut prices of its hatchbacks and sedans by Rs 29,000-50,000 , in a bid to lure customers to a market that is on course in the current fiscal year to post the first decline in annual sales in a decade. It however, raised prices of its sport-utility vehicles (SUVs) — the only bright spot in the Indian car market in recent months — by up to Rs 11,000.