MUMBAI: Tata Motors has invested more than $1 billion in the Nano project and the point at which it will start getting a return seems to be receding. In the past 4 years, Tata has sold 242,431 Nanos, less than the 250,000 annual number it was looking to achieve at the time of the 2009 launch.Ratan Tata’s dream, in which families precariously perched on a scooter would happily squeeze into a Nano, hasn’t quite worked out that way. Now the company is reworking the concept, trying to move away from the excessive hype that greeted the launch. At the time it grabbed international attention as the world’s cheapest car and the company was happy to ride the wave of euphoria.In hindsight, this clouded a clear-eyed view of the market. It didn’t help that the launch coincided with the global financial crisis that fed into India’seconomic slump.The company is now engaged in a process of winnowing out what works and junking or changing what doesn’t. The one-size-fits-all positioning is being turned into a many-flavoured offering. (See table)The Nano manufacturer finds itself in an odd situation. On the one hand, its audacious bid for Jaguar Land Rover has paid off big time. Not only has the British unit been turned around, it’s been the salvation of the parent as its Indian passenger products (and crucially its commercial vehicles) have been side-swiped by the slump.Meanwhile, the Tata Motors drab lineup hasn’t got anyone’s pulses racing, even as the design and performance of the JLR cars have made them world beaters. Given this context, the company’s being cautious with the Nano, a car that could become one of the great automotive icons if it’s marketed right and generates record-breaking sales.“We are on the fast journey in making the transformation, making sure all the fundamentals are in place, in trying to create aspiration around the brand, but a slow journey in making sure we don’t mess (up) on the fundamentals,” a company spokesperson said. “We should see a tipping point in the next six months’ time.”The company wants to jettison the perception that good value doesn’t mean a trim level that’s pared to the bone to the point where it’s just a few steps above an autorickshaw on four wheels. The Nano needs to be aspirational, rather than spartanly utilitarian.Tata Motors is hoping to cross the 10,000 per month mark in the next 12-18 months, from the average of 1,111 units so far in FY14 by refining the car and its marketing.At its launch, much was made of the Rs 1 lakh price tag, which became a millstone. The price points of the new family of Nanos are expected to range fromRs 1.75 lakh to aroundRs 3.25 lakh. Along with five trim levels, the company plans to offer four engine options --two petrol motors, one that runs on diesel and one on compressed natural gas.Power steering, a souped-up engine and better features are likely to debut soon. Meanwhile, an electric car and a hybrid are being worked on at the company’s UK R&D base, the Tata Motors European Technical Centre. The company has taken market soundings and segmented potential customers into entry-level first-time buyers, those seeking replacements and additional cars, and others who want more features and performance.When the 2012 version was launched, the Nano was a second car for half the buyers, a fourth were graduating from two wheelers and the remaining 25% were purchasing a car for the first time. While the buyers were spread across age brackets, the company feels it needs to work on appealing to younger people. At the time of the launch, the car was bought by diehard Tata fans with implicit trust in the company. According to a study by Synovate, in 2009, 63% of customers were in the 45-55 bracket. In 2012, 60% of customers were in the 25-44 age group and 21% in the 45-55 category. After peaking in FY12, volumes have plummeted.Average monthly sales in successive years starting FY10 read 3,372, 5,869, 6,210, 4,487 and 1,111 in FY14 until November. Meanwhile, the small-car segment — Alto, Wagon R, Santro, Eon — has grown 4% in the April-November period. Tata Motors says the Nano too has seen continuous improvement in retail sales since April. As part of widening the Nano’s appeal, the company wants the brand to make an emotional connect, more than just meeting the rational expectations of consumers. “The idea is to give the brand a far emotive personality and the new advertisement campaign of ‘awesomeness’ is in that direction,” said a person close to the company.The company has implemented some of what it’s learnt in the 2013 Nano. While the price has gone up slightly, a host of features have been added -- twin glove boxes, keyless entry, dashboard-integrated music system with Bluetooth connectivity, a bigger steering wheel and remote central locking, among several other new items. Next year will see even more changes -- electric power steering and, significantly, a more powerful engine, among them. Autocar India editor Hormazd Sorabjee has been tracking the country’s car market over the last few decades, and has closely watched the evolution of the Nano from concept to production car.He is cautiously welcoming of the move to pitch the car differently but said Tata Motors shouldn’t veer too sharply away from the basic premise of offering an affordable transport solution. On the other hand, mere tinkering won’t be enough, he feels. “With the power steering, the overall usability of the car will improve (but) having said that the changes are just incremental in nature. In order for the Nano to take off, they need to make big changes and introduce them for once in the market,” Sorabjee said.