Will Nano succeed in Sri Lanka?

Monday, 28 May 2012 00:50 - - {{hitsCtrl.values.hits}}

Seeing the growing acceptance of Tata’s Nano by car cab companies in Sri Lanka, Nano’s agents here are motivating three-wheeler owners to exchange their ‘tuk tuks’ for the swankier, air conditioned and more capacious Nano.

But three-wheeler owners, who are mostly working class Gulf-returnees or lower middle class skilled workers or petty traders, do not envisage an early switchover because of the huge cost difference.

Under the scheme announced by Tata agents Diesel and Motor Engineering Co., (DIMO), a three-wheeler owner pays just Rs. 1220 per day, to exchange his used vehicle for a brand new Nano, costing Rs. 1.46 million inclusive of all taxes.

Nano was rolled at in Lanka a year ago amid doubts if it was safe following reports of it catching fire. But very soon, the fears vanished, and in the past year, DIMO sold more than 2,500 units.

Unexpectedly, Nano is seen in the island nation, not as a small family car or the car of the young executive, but as a cab. “Over 75 per cent of our buyers have been car cab companies,” Nirmala Kalupahana, sales officer at DIMO, told Express.

“Among the individual buyers there are people from all classes, who see it as a second or third vehicle in the family, to the middle-class for which it is the first car,” Kalupahana said.

Fuel efficient

DIMO is trying to market Nano as the most fuel efficient car in the Lankan market on the basis of a 70 km Nano rally between Colombo and Negombo recently, in which the average fuel efficiency was 25 km per litre, company executives said. Nano comes with more facilities than any other Indian or Malaysian model in its category said DIMO Chairman Ranjith Pandithage. It has the power shutter, central locking, AC, Stereo with CD player, Bluetooth, Hands Free kit and so on. It has a four-year/90,000 km warranty, and three free complete services up to 15,000 km. Problems: However, some cab drivers complained that the clutch started giving trouble by the time the 15,000-km mark was reached, and replacement was called for. But most drivers said that it was not a bad car.

“Cab companies do not maintain their vehicles properly. If Nano is maintained well, it is a good buy for the price,” said driver Sugath.

But three-wheeler drivers are still wary. “The current price (Rs. 1.4 million) is on the high side for a poor man who has to go for leasing even to get a three-wheeler that costs Rs. 500,000 now. And one has to consider the maintenance costs also,” said Ganesh, a three-wheeler driver who owns his vehicle. (Express News Service)