NEW DELHI: The Nano may soon shed its much-publicized Rs 1 lakh-plus price tag. The Nano of the future may no longer be the 'poor man's car' and have features like power steering and contemporary design as standard fitments. The move, envisaged by Tata Motors to accord more acceptability to the model in view of its poor run possibly due to the 'cheapest car' branding, will see the Nano's price cross the Rs 2 lakh mark forever, a far cry from the ambitious and much-publicized Rs 1 lakh factory price tag that adorned the first model launched in March 2009.

Karl Slym, MD of Tata Motors, said a slew of measures are underway to take the car out of its present position as the company looks at a larger share for the Nano in its sales. Volumes of the Nano - that had gone down to as low as 509 units in December 2010 - could never reach the original target of 20,000-plus, and the company has been working out new ways to turn the situation around.

The upgraded model, Twist, is the only version that sports a power steering and was launched earlier this month with a Delhi ex-showroom price of Rs 2.37 lakh. This in all probability will be the mainstay version going forward, even as Tata works on further refinements - like a more powerful petrol engine and a diesel option.

"The Nano has changed quite a lot now. We have done all the right things. If you think about what it was when it was launched and what it is now, we have turned it into a car with a power steering... increased the entertainment inside, changed the interiors and made it more comfortable," Slym told TOI here. "I think the Nano deserves a power steering. If I think about the customers, then I believe it will migrate to only power steering."

The non-power steering versions of the Nano are priced at Rs 1.5 lakh (Standard), the CX (Rs 1.98 lakh) and LX (Rs 2.23 lakh).

The repositioning of the Nano is seen as a must for turning around the car's fortunes as it was not accepted by the masses with its original branding of the "cheapest car in the world".

Even Ratan Tata, the man behind Nano and the chairman emeritus of the Tata Group , recently said that marketing the Nano as the 'cheapest car' was not a right strategy and the tag acted as a 'stigma'. "It became termed as a cheapest car by the public and, I am sorry to say, by ourselves, not by me, but the company when it was marketing it. I think that is unfortunate."

Slym said that a full transition to upgraded versions may take a few months. "At the moment we are being cautious and making both available. But I believe it will end up with a single option."

The company has already repositioned Nano as a young and vibrant brand, evident from its high-pitched campaign dubbed "awesome" that is chic and youth-oriented. "We do not do these things without feedback and analysis," Slym said.

The success of the Nano is critical for Tata Motors that is currently struggling. Overall passenger vehicle sales of Tata Motors have slipped by 44% in April-December '13 period at 1.03 lakh units.

