That also convinced the general public that the Tata car was so cheap because the company cut corners in the manufacturing process.
While this would not have been a major issue on its own, when combined with bad marketing and advertising, it became one of the biggest reasons for first-time car buyers to avoid the Nano. The Nano was supposed to be manufactured in the new plant in West Bengal. Unfortunately, the company could not acquire land for the facility and instead had to start manufacturing from their Sanand facility in Gujarat.
Moreover, the lower production capacity could not keep up with the initial demand and many people simply did not buy a Nano early on because there were not any available.
Bad marketing and public relations for a hatchback that was not well designed and manufactured from the start simply added fuel to the fire. Why Tata Nano failed serves as a case study for future endeavors.
From a novel but faulty idea to a possibly promising reality that never transpired, the automaker simply could not deliver what it had promised and instead gave the people what they did not want: A cheap car that looked and felt cheap and was unsafe to drive.
The very first assumption that people wanted a cheap vehicle resulted in a cascading effect that ended with the demise of the Tata Nano. It was simply a car that was too expensive for the target market, yet too cheap for those who could afford it. What do you think made the Tata Nano a failure?
Feel free to share your thoughts about the car and what possibly went wrong in the comments below. Forgot your password? Remember Me. Please enter your username or email address. You will receive a link to create a new password via email. Already have an account? Login instead. The Tata Nano failed to be the innovative car it was aspired to be and is still considered one of the biggest tragedies in the history of the Indian Automotive Industry. Problem is not with nano car. We Indians will buy a 10 year old alto for 2L even though it has nothing better to offer.
The nano in our house is 11 years old and still going strong. The point mentioned in the article that Tata Nano had cheap material is absolutely false.
It has had the most innovatively designed parts with quality. It will any day put to shame the basic Kwid versions interiors to shame. I have been using a nano for past 6 years without any issues. This site uses Akismet to reduce spam. Learn how your comment data is processed.
Sign in. Log into your account. Via Bloomberg :. BMW expects to sell more than 10, of the i3 next year and "will adjust capacity according to demand. The success of Chrysler has been both a boost and a problem for Fiat, which wants to own all of the company and merge Fiat and Chrysler into a global superpower once and for all. As Bloomberg reports , that increase comes largely from the increasing value of Chrysler. So how much is that worth? How much it's actually worth is the sticking point.
It stands to reason that, as the U. With so much of tire locating offshore largely, China the idea of an Asian tire company building a plant in the United States sounds a little strange, although makes perfect sense.
Speaking of new production, Infiniti just broke ground in Sunderland in the UK. It'll be the first Infiniti plant in Europe and where the company plans to build the new Infiniti Q The Tatas are very invested in the progress and development of the Indian economy. Much of their efforts and business plans have social connotations attached to them. The Nano was no different. Ratan Tata had observed the plight of the lower middle class Indian for years.
He had observed how normal people travel by public transport. Come wind, come rain, come scorching sun, the lower-middle-class Indian has to resort to local trains and buses to get to work. For back then, a personal vehicle was considered to be an immense luxury. At best, all normal people could afford was a two-wheeler, nothing else.
Having a car was a status symbol. The fancier the car, the more money it signalled to the crowds. The well-to-do used the number of cars they owned as a way of advertising their wealth and their comfortable position in the upper strata of society.
The common lower-middle-class man was left to the mercies of the Indian weather. Ratan Tata sought an answer to this problem. He wanted to create a society where a personal car would be treated as an essential item and not a luxury. He wanted to introduce the large masses of lower-middle-class Indians to the joys and the comfort of the four-wheelers. He envisioned a world where people do not have to brave the weather and the woes of public transport in order to reach their workplace.
The only thing that kept the masses from entering into the sphere of the four-wheeler was money. Of all the four-wheelers that were available in the market, the cheapest were in the range of Rs. The prices went straight up from there, depending on the features and the make. Ratan Tata realised that in order to make the four-wheeler accessible to a larger public, he would have to create a car which was priced as low as possible. Thus, the idea for the cheapest car in India was born.
The Nano was originally marketed with an expected price of Rs. This was previously unheard of for a four-wheeler and took the market by a storm. Low price combined with a sturdy dependable design would ensure that owing a car was as easy as owning a motorbike or a cycle. The failure of a business plan is generally rooted in multiple reasons and a hundred small decisions along the way.
The failure of the Tata Nano was no different. Multiple mistakes along the way culminated in a disaster when the car was finally launched.
There are three main reasons which contributed to the failure of the Nano. We have summarised them below. The first main reason for the Tata Nano failure is the wrong marketing strategy.
Before launching a new product, it is very important to understand the target audience of that product. One needs to understand their psychology, their wants and desires. The marketing strategy is based on making the product seem attractive to that audience. The product becomes successful if the company can generate a sense of longing towards that product so that people buy it as soon as it is launched. This is where Tata Nano failed. The Tatas marketed the Nano as the cheapest car in India.
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