Tata Nano – Could Go Out Of Production Very Soon

It has been suggested that the car is still in production only due to Ratan Tata’s emotional connection to it, which is hardly a reason to keep going.

Tata Nano, Tiny Car, Small Car, Ratan tata

Who hasn’t seen Nano Car and said: ” See that little car “. Because I used to say it every time when I see that car and I used to enjoy seeing its visibility and presence. The colour of the car used to attract me every time even though it was small.

But now I couldn’t see this car anywhere in Bangalore now. I remember this car cost us Rs 1 Lakh which was the cheapest car in the world. It was a passion project of India’s foremost industrialist, Ratan Tata.

But the Nano was more than just a car. It symbolised India’s approach to innovation, the ability to do more with less, the ability to scale things on the cheap.
It also symbolised the social mobility promised by the future. Millions of Indian families mindset onto motorbikes for short trips- would now be able to own a car without having to worry about long-term financing plans.

It was going to be a Gamechanger.

And now, ten years later, there is barely any Nanos to be seen on Indian roads. The cheapest car has proven the biggest failure of its manufacturers. In 2018, only three were sold out.

What Went Wrong?

1. Escalations and Production Delay

As the Nano manufactures promised us to sell this product @ Rs 1 Lakh but the product ended up costing more to the company. And even the product should be shifted from Singur’s West Bengal Plant to Uttarakhand and Gujarat due to the farmer protest for the land acquisition. Which results in a delay of Car launch. Where the product made us feel the product was pushed into the rush.

2. Branding

Tata Motors, Ratan Tata, Nano Car
Tato Motors completely made people to misunderstand the product. In the country like India, where status is all about the matter. Keeping the ” Cheapest Car ” made people touch their status level. Thus it became as ” Poor’s Man Car “. But even the demand still remains to the people who need such a cost-effective car was ready to buy.

3. Lack of Distribution Strategy.

Nano remains stronger in a smaller town and rural markets. But they lack in throwing away in the solid dealership. Hence, the decline in car launch within a year. It just reaches the 55o units in December 2010 and even took to the selling marketplaces like Big Bazaar and exporting to Nepal and Srilanka.

Therefore, Nano could go out of production very soon. Tata Motors has maintained that it is yet to take a decision on the matter, but the continued investment, especially to comply with future emissions norms, simply does not justify the returns. A statement from Tata Motors clarified this by explaining that “the Nano in its present form cannot continue beyond 2019”.

It has been suggested that the car is still in production only due to Ratan Tata’s emotional connection to it, which is hardly a reason to keep going.

Under a proposed partnership, Jayem is set to use the body of the Nano to make a special electric vehicle, which will be branded the Jayem Neo EV. However, a spokesperson for Tata Motors said that this was merely speculation.

It looks to be a sad end for the “people’s car”, a product that promised so much. However, its phasing out should give way to smarter product choices from the company as it looks to regain market share at home.

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