Nano - Dream car or Dream

Will Nano be the dream car that the common man wants? Tata's credentials and ability to deliver this car has never been in question, the moot point though is the price tag that the car carries. With a tag of Rs 1 lakh Plus vat and ..., this car is roughly about twice as costly as the best selling motor bike in India. Will Price alone be good enough to woo these customers to buy Nano? Many questions remain unanswered, but the dream lives on. While it is true, these questions will only be answered when Nano actually comes for sale. What strategies Tata Motors would adopt going forward in the run up to the launch of Nano, promises to be exciting and defining.

The concept of Nano comes at an interesting stage in life of Tata Motors. Their first production Indica came out tagged as the first ever car to be designed and developed by an Indian company, and it was a runaway success going on to become the best selling car in it's market. Complaints from early adopters raised questions on the reliability of the car and on the credibility of TATA motors themselves. This was the first crucial test that Tata motors faced and they did handle that with aplomb, handling complaints efficiently and coming out with an improved version of Indica. Indica V2 resolved many of these initial problems that surfaced, and at the same time silenced the critics who questioned the indigenous technology..

On one side TATA Motors are trying to establish themselves as a Global company by pushing to acquire revered brands such as Jaguar and Rover. On the other side they are making waves attempting to create the Nano. There are no points for guessing what Tata Motors is heavily betting on at the moment. Indica has been the most successful car that Tata Motors have launched so far. Indigo has been a moderate success and Sumo seems to be losing its own battle in the Utility vehicles segment. With ever increasing competition and no significant factors for differentiation in a segment, Tata Motors realise that they need a winner; they need a star to emerge sooner than later that eventually turns into a cash cow to fund their global ambitions.

To be continued...

Suresh
The author works for a Global IT consulting organisation as a IT consultant. He is currently based out of London.