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Opinion – Is Tata Nano failing in Indian auto market

It was Ratan Tata’s dream to see every Indian owning a car and that is why he brought out the Tata Nano, a comfortable, safe, all weather, passenger friendly car that was low on fuel consumption, and low on maintenance. Unfortunately it seems, Nano did more harm than good to Company’s image.  Producing the world’s cheapest car has led to a certain level of downfall.

A car that is available for just $2,500 or a little over one lakh Indian Rupees is under investigation by Tata Motors due to reports of electrical fires. There are reasons for its failure.  The problems all began when there was an agitation and the plant at Singur had to be closed down.

Then according to reports in newspapers, fires which seemed to be due to faulty wiring and manufacturing defects occurred in three cases. In all cases it occurred when ignition switch was in ‘off’ position.  There were also negative reports of the vehicle being too noisy.  This could be because the car is fitted with a 4 stroke engine similar to that of an Activa bike.

Though there was no loss of human life or any major calamities, this has caused a lot of concerns for the company and are they in the process of contemplating recalling of the Nano to investigate further. Then comes the consideration whether all of India needed a cheap car, well, it seems not. It’s not an EV, so people aren’t impressed, and it doesn’t meet needs per se.

To save face, Tata Motors is now busy trying to open retail points at smaller cities and villages just like they did with the ace, so they can increase sales volume, which is a major concern. It’s fast becoming a lost battle for Tata motors, and that’s’ why retail marketing for the Tata Nano seems to be an immediate solution. So don’t be surprised if you go shopping for groceries, and come home with a Tata Nano.

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