Tata Motors struggles to push Nano sales in domestic market

It was the year 2008 when one car was being talked about more than anything else during the Auto Expo event held in Delhi. It was labeled as the ‘cheapest car in the world’ and there was all round belief about its success. Three years down the lane it has now been established that it is this tag line has rather been the reason for the car’s dismal sales.

The tag line that the company used to further their car turned against it for it went on to portray the Nano as a ‘poor man’s car’. With consumers in India being of the status conscious type along with the fact that a car in India is still to some extent synonymous to an individual’s social or economic status played against the Nano itself. There was also the fact that consumers always had the option to go for a better equipped car by adding a small extra amount to the Nano’s price. Clearly, the Nano project can be considered a classic case of a botched up marketing attempt as Tata Motors failed to position the car in the right manner.

The car also ran into trouble at the time of setting up of the factory. The villagers of West Bengal where the factory was being planned to be set up went up in arms against the project coming up in their land. The project faced some delay in the process. Even after the first lot of cars came into the market, there were instances of the car catching fire leading to serious concerns about the safety of the car. Tata therefore had to revamp their entire project. Also, its not only the design but a fresh marketing attempt that Tata Motors have resorted to to ramp up sales of the Nano. As part of that, the Nano is now being projected as an ‘all weather family car’ that steeps of sophistication and innovation.