Logically, the strategy appeared faultless — offering an affordable solution to millions of aspirational lower-middle class Indian families wanting to make the social and practical leap from two wheels to four.
But after several years of disappointing sales, it has now become clear that the snubnosed hatchback’s unique selling point — its price — was actually a commercial sticking point.
Rather than embracing the Nano, the status-conscious consumer base that was its prime target has largely shunned the “cheap” tag of the $2,800 vehicle and opted for slightly pricier rivals, or second-hand vehicles costing the same.
“A Nano is always bandied about as a poor man’s car. Nobody wants to be caught with it,” said Punnoose Tharyan, editor of India’s Motown magazine.
Sales are far off the target of 25,000 cars a month, and the Nano plant, with an annual capacity 250,000 units, produces only 10,000 a month, according to R. Ramakrishnan, business head of Tata Motors passenger cars.
Now Tata Motors, which also produces the British luxury Jaguar and Land Rover brands, has gone into damage control mode.