Tata Nano and Sumo To Be Discontinued Soon?

2015 Tata Nano GenX (8)

Reports suggest that Tata Motors plans to discontinue around four models from its current product portfolio. Likely to take place over the next 3-4 years, the move will be aimed at limiting the number of platforms used across its passenger vehicles segment.

In a previous announcement, Tata Motors had said that they would reduce the number of platforms from the current count of six to just two by the year 2020-21. The models that are likely to face the axe would be the Sumo, Indigo CS, Indica and the Nano. The ‘world’s cheapest car’ was in the news since Tata Sons’ previous chairman, Cyrus Mistry, claimed that the model was causing huge losses to the company.

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Although Tata Motors has not made an official statement, Vivek Srivatsa, Marketing Head at Tata Motors was quoted saying that at present, they have 10 cars in their portfolio, including the newly introduced compact sedan Tigor. By 2019-20, they will launch at least four new cars without increasing the size of their portfolio. This would mean phasing out of some of the existing cars.

Not only is the plan to phase out these models a strategic move, but also an inevitable one as the upcoming safety and emission norms will result in more investment for already loss making products. While the Sumo will be completely scrapped with no likely successor, the Indigo CS and the Indica will be replaced by the Zest and the Bolt respectively for the fleet car segment.

Source: Times Of India


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