Tata Nano may be in demand with economic growth plummeting in India

While sales of the Nano is not as bad as it used to be even a few months ago, it isn’t that good either for Tata Motors to rejoice. However, this time it isn’t the Nano alone but the entire automobile segment in India that has found the going tough. There is general disarray that the present economy is experiencing. With this trend, consumers are bound to look for cheaper cars. Tata Motors therefore stands to gain if this be so. The same effect had been experienced by Toyota and Volkswagen in their respective markets.

Last year Indian economy posted a growth rate of 8.5 percent though the IMF has predicted this rate to go down to 7 percent. Similarly, Moody too is reporting Indian banks falling into bad times given its bad loan schemes.

In the 1970s and 1980s, the US economy had faced a severe stagnation. Due this effect Volkswagen and Toyota made brisk sales in that period. Given the high inflation scenario that Indian economy is facing as well the high cost of fuel the Nano appears to be set for making some strong sales among the Indian consumers.

With the economy suffering, Nano sales which has been suffering till now appears to be the cheap solution that the Indian consumer would be looking for.

For the past few months, Nano sales has been good though it still has to be better for the entire Nano project to be considered a success. Tata Motors has already launched a revamped 2012 Nano and has also been spared the price hike that the company affected to all its other car models. What remains to be seen now is whether the Nano is as much of a success that its makers wish it to be.