Tata Motors is occupying the headlines for the last three weeks, courtesy the Singur land issue. In every report on Singur, the Tata Nano model is invariably mentioned. Even before the car has been launched Tata Nano is a huge brand.
When Ratan Tata, showcased the Nano during the Auto expo in January, the entire world media covered it. Except for one-full page advertisement, virtually, the Tatas did not spend on advertising for Nano at all. Yet, Nano is a household name today, thanks to the extensive coverage for all the reasons, right and wrong. Analysts, estimate that the buzz created by the free publicity for Nano is worth over Rs 500 crore.
Tata Motors in the midst of the Singur controversy, has launched a new model of car , Tata Indica Vista. This according to Tata Motors is a major upgrade of Indica. Auto analysts have rated the car highly. Tata Motors have also released several advertisements in press and television with the tagline ‘Changes everything’. Yet, this launch has gone largely unnoticed. There is no buzz about Indica Vista.
Tatas now have a piquant problem on their hand. The buzz has got created around Nano, for which the production facility is not yet ready. Even, if they are able to meet the October 2008 launch deadline, the waiting list is likely to be long. This is going to create disappointments all around. On the other hand, Tata Indica Vista , inspite of a large advertising budget, is unlikely to keep the Tata Motors’ factory busy. On both counts, Tata Motors is on the losing side. Until recently, everything clicked for Tatas, suddenly nothing is working. Mr Tata must be surely in a mood to “Change everything”.