Tata Nano’s Bumpy Ride in Indian Market

Tata Nano's Bumpy Ride in Indian Market

Tata Nano, world’s cheapest car was launched in India  in March 2009. It is  an inexpensive, rear-engined, four-passenger city car built by the Indian company Tata Motors and is aimed primarily at the Indian domestic market.

The sales figure started plunging since July 2010 and touched all time low figures in December 2010. In this month they mere sold 509 units of Tata Nano.

The start was smooth for the few months but soon it turned to a bumpy ride for Tata Nano sales. There was a drastic change in the sales figure and Tatas had to re-think on it’s design and safety measures.

Features of Tata Nano

  • New type of seats with integrated head rests
  • No radio, no AC, no passenger side mirror
  • Similar door handles and mechanism for left and right side doors
  • Rear-mounted engine layout eliminates drive-shaft results in space and weight saving
  • Two cylinder engine for lower cost and better fuel efficiency with Euro IV compliance
  • Plastic Panels innovatively designed to eliminate the need for screws
  • Only one wind shield wiper
  • Instrument cluster is located in the center of the dashboard and has only analog display
  • Extensive use of hydro-forming and roll-forming for cost reduction.
  • The luggage or cargo space is in front.

What Makes Tata Nano world’s cheapest car?

  • No Power windows and No AC
  • No Power steering
  • One Wind shield wiper
  • Extensive use of plastic and adhesive
  • No passenger side mirror
  • Small and light wheels
  • Body made of metal-sheets and plastic
  • New type of seats

Tata Nano Sales in Later half of 2010

  • July 2010 – 9000 units
  • August 2010 – 8000 units
  • September 2010 – 5520 units
  • October 2010 – 3065 units
  • November 2010 – 509 units
  • December 2010 – 5784 Units

Reasons for Nano’s bumpy ride

  • Incidents of catching fire while driving
  • Long waiting period i.e. demand is more than supply
  • Available across 12 of 28 states in India

Measures taken by Tata

  • Back to the basics : Tata revisited design, engineering aspects and safety parameters
  • Upgraded safety measures
  • Tata reportedly changed the vendor who supplied Switches involved in fire incidents
  • Extended warranty of 4 years or 60k kms (whichever is earlier)
  • Introduced Easy financing options through Tata Motor Finance)
  • Tie-ups with various banks for other Financing options
  • Introduced optional maintenance scheme for just Rs 99/- per month
  • The car has been made available at all the 874 sales outlets of the company.