Recently Ratan Tata accepted the mistake of projecting his dream project ‘Nano’ as a world’s cheapest car. The Tata group is planning to re-launch the car in a new avatar in Indonesia.
Tata wishes to wipe off the stigma of Nano-being the ‘cheapest car’.
During the last December ‘Ratan Tata stepped down as the Chairman of the salt-to- software conglomerate’. He advocated that Nano can be launched as a transformed product in European nations in order to cultivate interest in the car in nations other than India.
Tata stated, “Maybe it (Nano) gets launched in another country like Indonesia, where it doesn’t have the stigma and the new image comes back to India. Or maybe as a changed product that gets marketed in Europe. There’s a lot of interest in Nano outside India.”
He further added, “A re-launched Nano with some of the differences that we’re trying to incorporate, yes I do…We are going to re-launch the car not as the cheapest car but in the image as it is.”
Ratan Tata candidly accepted the folly of marketing Nano as ‘World’s cheapest car’ and said, “It became termed as a cheapest car by the public and, I am sorry to say, by ourselves, not by me, but the company when it was marketing it. I think that is unfortunate.”
He added, “I always felt that Nano should have been marketed towards the owner of a two-wheeler because it was conceived giving the people who rode on two-wheels with the whole family an all-weather safe form of affordable transportation, not the cheapest.”
Nano drastically failed to meet up to the hype and expectations created prior to its launch. ‘In the April-October period this fiscal, it clocked just 12,322 units as against 43,627 units in the year-ago period, down 71.7 percent.’
‘The Nano has a troubled past. It was originally planned to roll out from a plant in Singur, West Bengal, but the plant had to be shifted to Sanand in Gujarat after political protests at its earlier plant. Instances of the car catching fire initially after it was launched didn’t help its cause either.’
Ratan’s dream project-Nano was launched in Indian market in March 2009 with ex-factory price of Rs one lakh for basic model and presently it is available between Rs 1.45 lakh and Rs 2.65 lakh.