Where Did It All Go Wrong For Tata’s Nano?

Discussion in 'World Affairs' started by Cheetah786, Mar 9, 2012.

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  1. Cheetah786
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    The jury is still out on whether Tata’s Nano has failed, but sales of just 509 cars in November hardly sound like a rip-roaring success when compared to the frenzy reported around its launch. Just a year ago, Tata felt forced to hold a lottery to prioritize initial sales — so heavy was the demand. Against an overall car sales rise of 38 percent on a year ago and Nano sales of 3,065 in October, down from 5,520 in September according to an FT article, Tata managed just 509 in November. In total, the Nano has managed sales of just 70,000 sold since it entered the market in July 2009, according to CarNews.com.

    The 0.6-liter two-cylinder-equipped Nano is assembled in the western Indian state of Gujarat, where the plant is capable of churning out 250,000 models per year at full capacity. At just 123,360 to 172,360 Indian rupees in India, which is around $2700 to $3800, the Nano was aimed firmly at the motorcycling family looking to move up to the comfort and convenience of four wheels. The Nano’s low-cost innovations include using three lug nuts to secure the wheels instead of four, reduced use of steel, a single wiper blade and side-view mirror, and a trunk that’s only accessible from the inside.

    The poor sales are blamed on two factors.

    As we reported back in March of this year, the Nano suffered isolated reports of catching fire, forcing Tata to offer a safety recall (in all but name) to users. This bad press put off buyers and from the late summer onwards, sales dwindled. Possibly more of an issue according to company executives is the disconnect between product and market. As we have said, the Nano is aimed at the poor. Ratan Tata’s vision was to provide safe and comfortable transport for India’s scootering public. Anyone familiar with the country so often sees those families with father, mother and two children all perched precariously on a scooter in sweltering heat or monsoon rains or just dodging through India’s crowded city roads, risking death or injury to two generations. The Nano is aimed squarely at the poor, but this group also finds it nearly impossible to raise finances at affordable levels. Once the initial wave of novelty-seeking or more wealthy poor had placed their orders, new buyers dried up, so Tata is developing in-house financing and may be looking at the success over the years of GM’s GMAC model, to provide finance in support of sales.

    How successful they will be remains to be seen. The Nano has its problems, but it is a brave attempt at low-price car manufacturing and Tata deserves credit for going where others feared to tread. At the other end of the range, Tata is making a success of Britain’s luxury mark Jaguar — let’s hope they can pull the same rabbit out the hat with the Nano.

    Where Did It All Go Wrong For Tata’s Nano? | MetalMiner
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  2. GURU DUTT
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    GURU DUTT SENIOR MEMBER

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    NANO is a good sturdy car & can take a lot of abuse like any other car from TATA stable ....that said the main problem for its sale is the "lakhtakia" image attached to it ...many families dont go for tht very reason & second reason for its lw sales is TATA's dreaded after sales service which most people have....other than that there is absoleutly no issue with engine or gearbox or suspension all are good infact i drove my freinds NANO from Delhi to Rohtang & back t feels as comfy as any Maruti or TATA car..Thanks
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  3. Jade
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    Jade SENIOR MEMBER

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    The problem with TATA Nano is its image. TATA failed with branding TATA Nano as a family car. TATA seems to realize this, and is as repackaging TATA Nano as TATA Pixel, which it unveiled at Geneva Motor Show yesterday.

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  4. GURU DUTT
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    GURU DUTT SENIOR MEMBER

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    sir i have a question , will they be selling this car with there new 3 cylender engine + will it be avilable in diesel only varient..Thanks.
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  5. Rig Vedic
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    Rig Vedic SENIOR MEMBER

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  6. takeiteasy
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    Nano is selling in good numbers(9xxx). the biggest turn-off was the tag "cheapest car" for the mass. We have seen online and offline "experts" both from India and other countries who wants to thrash the car even before trying it. lately, Nano build quality is improved with the launch of "Nano 2012" and rumours that Tata is going to replace the 2 cylinder tata-bosch petrol engine with 3 cylinder one especially to improve the engine sound(2 cylinder engine has more noise) and other characteristics and to erase the image as cheapest car available.

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  7. Abingdonboy
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    Abingdonboy ELITE MEMBER

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    Exactly, a car-especially in India- is an aspirational and status symbol as such if you're saving up and spending a considerable amount of money anyway your not going to want to buy something that sells itself as the "cheapest". They should have gone with "affordable quality" and such, after all he NANO is a lot of car for the $. But I think the NANO would go down a treat in more developed nations where car ownership is more widespread and many ARE looking for as cheap as possible. I know I'd certainly buy this car (I'm 18 and would love my own car but can't afford a new one and don't want some old banger tht will never work).
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  8. W.11
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    W.11 ELITE MEMBER

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    this megapixel car runs on charging it with electricity??
  9. Loki
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    Loki ELITE MEMBER

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    It's a good car to be frank. Some of the mentioned setbacks could be due to marketing and after sales service. I think the tag 'world's cheapest car' is a bit of a turn off for many.

    Good and effective marketing really counts. And in today's economic climate, the car has potential. But be wary, many competitors can come up with other ideas to counter the Nano/Pixel.
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  10. itaskol
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    itaskol FULL MEMBER

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    the concept of tata nano is wrong. "cheapest car" for the mass is not good idea.
    public traffic is much more important.
  11. Rig Vedic
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    Rig Vedic SENIOR MEMBER

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    Yes, you can charge it, but then it also has a small petrol engine (325cc).

    The petrol engine can be small because peak power can partly come from the battery. While cruising, the power consumption is low, so you can take power from the engine as well as recharge the battery.

    The range on a single tank of petrol is 900 km. Pure electric range is some 87 km.

    The average is 100 km per liter for typical use.
  12. Lankan Ranger
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    Lankan Ranger ELITE MEMBER

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    In Sri Lanka, Nano Taxi Service doing very well..........

    [​IMG]
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  13. samrat
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    samrat FULL MEMBER

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    You realize that TATA Nano is also sold in villages. Good public transportation is always welcome but it can never replace the joy of personal mobility that cars like Nano gives.
  14. Cheetah786
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    Cheetah786 PDF VETERAN

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    Would you buy One ?

    All of You are telling me people who are driving Motorcycles that cost lot less then this will consider this a bad alternative really cause it cost less then say Murati.then i have another question for you all how come people buy Muratis or other cars in India as we all no they cost lot less then say BMW or Mercedes.
  15. Cheetah786
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    Cheetah786 PDF VETERAN

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    This isn't a part of national pride In fact this is being rejected by Indians themselves cause of poor quality but for argument sake even one was to go by your logic sales shows Indians in mass has rejected this car including the villagers they rather bike or walk then to buy this car and most defending the car here don't own one.