I really don't want this blog to become a nano-basher but could not avoid the issue as I predicted the reason in 2009 when nano was launched. Recently, this article was also resonating in the same vibe that I have written in earlier articles.
Car, being an 'asset' in India should not be coined as 'cheap' like any other consumable product. Unless, the category is shifted to consumable goods (like mobile phone, which was once asset too), the 'affordability' should be a subdued undertone. In 2013 also the sales of Nano was down (much worse, actually). This article (http://www.team-bhp.com/news/tatas-nano-sales-free-fall-down-948-units-april) stated that one of the reason was 'image of the “cheapest car” in the world! it adds "Let's reflect on when the Maruti 800 was launched; it was hardly pitched as a cheap car. Instead, Maruti chose to focus on the strengths of the product, which were only amplified by word-of-mouth recommendations based on owner experiences. Car ownership in India is greatly driven by aspirational value, and owning the “cheapest car in India / the world” is not something one aspires to. Simply put, the Nano lacks the all-too-crucial status that first time car owners are looking for. "
In another article at Wall Street Journal (http://online.wsj.com/news/articles/SB10001424052702304520704579125312679104596) the writer indicated 'Now, Nano is trying remake the "people's car," into the "cool people's car." It has given the car itself a face-lift, adding a stereo, hubcaps and chrome trim, raised the price and started a new marketing campaign to give it more cachet.' this is exactly I have mentioned in 2009, that Tata should try to portray it as cool 'disposable' car for youth rather than cheapest car for poor.
Want to know more about Nano's downfall and my insight? read my previous posts.
Car, being an 'asset' in India should not be coined as 'cheap' like any other consumable product. Unless, the category is shifted to consumable goods (like mobile phone, which was once asset too), the 'affordability' should be a subdued undertone. In 2013 also the sales of Nano was down (much worse, actually). This article (http://www.team-bhp.com/news/tatas-nano-sales-free-fall-down-948-units-april) stated that one of the reason was 'image of the “cheapest car” in the world! it adds "Let's reflect on when the Maruti 800 was launched; it was hardly pitched as a cheap car. Instead, Maruti chose to focus on the strengths of the product, which were only amplified by word-of-mouth recommendations based on owner experiences. Car ownership in India is greatly driven by aspirational value, and owning the “cheapest car in India / the world” is not something one aspires to. Simply put, the Nano lacks the all-too-crucial status that first time car owners are looking for. "
In another article at Wall Street Journal (http://online.wsj.com/news/articles/SB10001424052702304520704579125312679104596) the writer indicated 'Now, Nano is trying remake the "people's car," into the "cool people's car." It has given the car itself a face-lift, adding a stereo, hubcaps and chrome trim, raised the price and started a new marketing campaign to give it more cachet.' this is exactly I have mentioned in 2009, that Tata should try to portray it as cool 'disposable' car for youth rather than cheapest car for poor.
Want to know more about Nano's downfall and my insight? read my previous posts.
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