My first impression of the Nano was - hope this doesn't go the way of the Hero Honda Street (wasn't that the name of the scooter-mobike crossover that also failed miserably?)! Sometimes, when someone breaks into a completely new market, you might want to ask yourself - why isn't this market already occupied? Maybe there is a reason!
The problems, as I see it with the Nano, were multiple:
1) Over-hype, leading to over booking, but inability to deliver on time - if you are not geared up to grab the opportunity, people will quickly move on. As you said, most people became stars with their Nanos, but the novelty factor washes off pretty quickly.
2) 1.5 lakh on road is still a lot of money for a car, and for people shelling out that much, maybe a second hand Maruti was a much more reliable option!
3) Safety concerns and bad press - multiple instances of cars catching fire is scary!
4) Cars need parking space (unlike a bike, you can't park it in your verendah!), petrol is expensive, and it can't double up as a goods carrier!
Some possible solutions:
1) Target the youth - for the Indian middle class, make it the option of choice for the daughter going to college, a much safer option compared to a two wheeler
2) Target it as replacement for autos/taxis
3) Offer it on a hire basis - Tatas continue to own and maintain the vehicles, but rent it out by the month
1 comment:
I love Ratan Tata to pieces and if I had money to spare, then I would buy a Nano in a heartbeat, just based on the sheer fact that I love and respect him immensely, no other reason. :-)
Not real-life behavior but I would buy it.
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