Friday, July 10, 2009

TATA Nano: Has the dream gone wrong?

It was a dream come true and TATA made us proud all over the world with this small technology wonder termed as people's car 'Nano'. It was just a dream come true but with its existing sales figures, has the dream gone wrong. 'TATA Nano' was much awaited product last year due to its price tag of only 1 Lakh rupees (which also has crossed 1.5 lakhs recently) and expected to jolt 2-wheeler market in India but unfortunately it has failed to do so. There can be many reasons for it which were pretty obvious from the starting itself but were overlooked by the TATA team. Some of the reasons which I feel contributed to its not so expected sales are as follows:

2-wheelers are preferred over 4-wheelers to avoid traffic snarls in congested cities which TATA Nano failed to provide to its users and ultimately failed to be an option for 2-wheelers.

Initial technology hick-ups and long waited delivery periods took the shine away from the product.

TATA Nano due to its smaller design and appearance failed to create ownership charm for its users to some extent. Positioning it as a cheap car is the biggest mistake as it will take away pride of ownership and most of the customers will not like it for sure. Lesser boot space also hinders prospect of long drives at regular intervals.

Today customers are moving towards better looking vehicles which can provide more comfort, safety, performance and status quo. This is the reason that hatchback and sedans' market is continuously growing in India whereas in recent times smaller cars has seen decline in sales.

I believe it is time for TATA team to device a new strategy for 'Nano' and pitch it in a different manner rather than pitching it as replacement for 2-wheelers. Product which has been the pride of the country should not go down in history as a failed one. I would like to see the success of this little technology marvel and that is what my heart whispers to me..........

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