The city car which was designed manufactured by Tata Motors is Nano. Nano is distinct from all other cars as it is the world’s cheapest car., Nano was widely publicized as a 1 lakh (US$1,700) car during the period of its launch. It was considered as one of the milestones in the history of automotive industry.
Since its launch 4 years back though, the price has increased. Only the very first few customers were able to purchase the car at that price. Present day, the basic price for the Nano is around 150,000. Nevertheless, Nano still holds the mantle for being the lowest-cost four-wheeler in India. Urban folklore has it that Ratan Tata envisaged the need for an affordable car for every Indian when he saw a family of 4 travelling and adjusting …show more content…
In a country like that of India, this believed to be a sure-shot winner. However, this was not the case. Nano’s customers were not upgrader’s from 2-wheelers. Rather, they used Nano as a trendy, fun second car for running their errands. Tata was now addressing a completely new segment of people who never even considered of buying a car. They completely misread the mindset of consumers. The record sales in Alto just after Nano’s recent price hike. This suggests that if people could afford to buy a Nano, they wouldn’t mind paying a bit more on a car which is tried and tested in the …show more content…
Although this assisted in creating the initial frenzy, the long term side effects were much more damaging. Many saw Nano as a glorified auto. As soon as they realized this, Nano started branding itself as a ‘1 lakh car’. In India, where prestige and status figures on the upper position of the society’s structural setup, being tagged with a cheap car could do more harm than good. This is especially true for a first-time Car buyer. The level of recognition in the society which an Alto could give is much higher than that of Nano could
Since its launch 4 years back though, the price has increased. Only the very first few customers were able to purchase the car at that price. Present day, the basic price for the Nano is around 150,000. Nevertheless, Nano still holds the mantle for being the lowest-cost four-wheeler in India. Urban folklore has it that Ratan Tata envisaged the need for an affordable car for every Indian when he saw a family of 4 travelling and adjusting …show more content…
In a country like that of India, this believed to be a sure-shot winner. However, this was not the case. Nano’s customers were not upgrader’s from 2-wheelers. Rather, they used Nano as a trendy, fun second car for running their errands. Tata was now addressing a completely new segment of people who never even considered of buying a car. They completely misread the mindset of consumers. The record sales in Alto just after Nano’s recent price hike. This suggests that if people could afford to buy a Nano, they wouldn’t mind paying a bit more on a car which is tried and tested in the …show more content…
Although this assisted in creating the initial frenzy, the long term side effects were much more damaging. Many saw Nano as a glorified auto. As soon as they realized this, Nano started branding itself as a ‘1 lakh car’. In India, where prestige and status figures on the upper position of the society’s structural setup, being tagged with a cheap car could do more harm than good. This is especially true for a first-time Car buyer. The level of recognition in the society which an Alto could give is much higher than that of Nano could