For a company like Tata Motors who took on Jaguar Land Rover and saved it from bankruptcy it was thought that making Tata Nano a smash hit would be a piece of cake. That was not to be the story and Nano, the world’s cheapest car has yet to see any success.
Ratan Tata, the 73 year old owner of Tata Motors is being asked questions about Tata Nano. Nano went on sale for Rs. 1,00,000 for the basic model. Ratan Tata and his team expected the car to be a resounding success and especially since it targeted lower income and first time buyers. However, in reality, the scene is quite different.
Jaguar Land Rover is contributing in a major way to the company’s profits while Nano is readying for despair. Sales have been minimal during the past year and the company has recorded a 47% fall since last month.
There are a number of factors that contributed to its downfall. It began with delay in production due to land disputes, followed by a not so strong dealer base. Instances of Nano catching fire are another factor which has contributed to its diminishing sales.