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Jun 1, 2008

Would You Buy A Tata Nano?

The most eagerly awaited car launch of the decade, if not the century, is almost upon us. A few more months and Tata’s most ambitious car project will bear fruit. Some might say that buying Jaguar-Land Rover is big, but the Nano is even bigger, despite the name.

Nano is not just a car. It is THE CAR. For whom, one might ask. The answer to which, Tata think they have. Ours is a big country, second biggest in terms of population and seventh biggest in terms of area. The economy might be on the rise, but the number of people who can actually afford to own a car is still miniscule compared to the whole crowd.

Also, owning a car has more than just utility attached to it. It is a status symbol as well. How come? Well, why would one buy an X5 when a Safari seats you in equal comfort? This is where the brand’s snob value comes in and also the costs. This is also where I think Tata is going to have some trouble in the urban market. They can thank is some part to the media for it (labeling it a lakh rupee car), as well as their first success, the Indica. Nano is a cheap car, and this is as much a problem as it is an advantage.

Now I don’t want to sound like one of those detractors who dismisses stuff without as much as a glance, and neither have I conducted any survey, but I have a gut feeling that the Nano is not going to be a roaring success in urban India. I repeat, ‘urban India’. I hope I am wrong though.

Now this is not to say that it will be a failure. Far from it I say. Apart from the metros there are a whole bunch of small cities and towns with large enough population and good enough roads. These are the markets that I think where the Nano will be lapped up in millions. Owning a set of wheels still means a 100cc Hero Honda for most. These towns and cities are where the Nano will be right at home. Also countries in the African continent, Eastern Europe and Central and Latin America would be huge markets for the car.

On the other hand, I don’t think anyone in cities like New Delhi, Bombay or Bangalore would like to be seen driving around in a ‘cheap’ car, no matter what it looks like, except maybe a cab driver who wants a reliable product and wants to save on costs.

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