Tata Nano sells just 506 cars in November 2010




When Tata Nano was introduced at the Auto Expo in 2008, it immediately became the rock star of the global automotive community sparking debates about the increased congestion in the roads across the world and supporters cheered on how it will help thousands of Indians to fulfil their dreams of owning a car.

Everyone predicted the death of commuter bikes in India and expected every small family in the country to own a Nano to make their travel safer and more stylish.

Fast forward to 2010 –  Reports of Nano cars randomly exploding take everyone by surprise sparking debates about the actual safety of the vehicle.The car was found to have some fundamental flaws in its design and Tata Motors offered to fix the flaws for free and called for a recall. This was a major disaster for the small car and the sales have been hitting the floor for this little wonder which promised to change the way families in India commute.

The latest news is that Tata Motors has sold just 506 cars in the month of November down from the 3024 figure of October 2010. So, what went wrong?

Many things from the product recall which scares the wits out of any wannabe owner of a Tata Nano. I would not want to drive a car with an eye in the rear view to see if there is a fire brewing up.

Then, the costs. The car which was promised to cost less than Rs. 1,00,000 (2000 USD) is now at almost double the price and putting in in direct competition of some of the small cars in the market.  This takes it way out the league of the motorcycle prices with whom it is meant to compete with. Tata Motors blames the costs of raw materials for this price hike.

The banks have also withdrawn their support to the Indian Car dream as the car is meant for the “low income group” which means their chances of repaying the loan is a bigger risk than other car loans. This will perhaps be the biggest of the reasons why Nano is not taking off. Tata has huge hurdles to cross on this front if it wants to Nano sales to pick up.

Personally, I kind of like the car a lot. If I was not such a big motorcycle lover, maybe I would have gone for the Nano. It is small, cheap, different and has a roof! What do you think about the Tata Nano? Would you buy it if you had the money? Why and why not?

Looking forward to your thoughts.

Inspired from Team BHP





5 responses to “Tata Nano sells just 506 cars in November 2010”

  1. […] This post was mentioned on Twitter by Anand Subramanian, Nadeem Ismail and The Blogging Ninja, An Interesting Persn. An Interesting Persn said: Tata Nano sells just 506 cars in November 2010 http://goo.gl/fb/ML1zU […]

  2. Tej Kohli Avatar

    Tata Nano is world Cheapest Car, So I think middle class people can buy easily … I am expecting more sales in future

  3. Manuel Avatar

    A not-so-pricey car that doesn’t have nothing else to boast of, except those occasional car-catching-fire incidents – thats what Tata Nano has become now. Tatas need to invest in technology IMO. For example, a battery powered version of Tata Nano with good range can do wonders. I won’t mind paying an extra premium for that.

    The current electric car option in the form of Reva is so inadequate that it leaves Tatas with ample space to leverage. On a side note, Mahindras recently acquired Reva and Tatas need to start innovating instead of spending time and energy on those unsustainable price wars.

  4. Rameez Nooruddin Avatar

    The Nano suffers from an image problem. I’m talking about not just the bad rep it got after the fire mishaps, but also about the image of a ‘cheap’ car. The fires and design faults only reinforced the image of Nano being a cheaply-built car.

    Yet when the buyer looks at the price, it ain’t so cheap. A li’l extra in those monthly EMIs will fetch the buyer a car with a better image from a competitor.

    And, in India, people judge you by your car. It’s a prestige issue. Cheapskate isn’t what most Indians would like to tagged as.

  5. Shrinidhi Hande Avatar

    Tatas have initiated a series of measures to boost sales, let us see how it turns out

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