Tata told US business channel CNBC late Friday he still had high hopes for the tiny Nano in its home market and abroad.
"A re-launched Nano with some of the differences that we're trying to incorporate, yes I do" believe it has good prospects, Tata said.
"We are going to relaunch the car not as the cheapest car" but with a different "image", Tata said, without giving a timeframe.
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When Tata Motors -- part of India's giant Tata group -- launched the Nano in 2009, analysts said it would revolutionise how millions in India travelled. But after poor sales, it become clear the car's unique selling point -- its price -- had backfired.
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Tata said the branding of the jelly-bean shaped vehicle as the world's cheapest car was a mistake.
"It became termed as a cheapest car by the public and, I am sorry to say, by ourselves," Tata said, calling the branding "unfortunate".
Rather than embracing the Nano, the poorer but still status-conscious customer base the car was targeting