Tata Nano was launched by Tata Motors with a view to provide the common man a taste of luxury at a lower price than the existing cars. The car was positioned as an affordable option by the company for the lower-middle class families which wanted to upgrade from two-wheelers to four-wheelers. It is however being said that its price which was supposedly its unique selling point has now become a reason to switch to slightly pricier and apparently better alternatives.
According to the automobile industry analysts, the Indian customers are moving towards second-hand vehicles that cost the same or slightly higher than the base model of the Nano. Thus, the small car is no longer a cheap option for the customers since they have the option to avail a better used car at a lower or similar price. Moreover, since the car seems to have been marketed as a poor man’s car in India, many of the status conscious Indian customers who do not want to be seen as poor refrain from buying the Nano.
Mr. Ratan Tata Chairman Tata Motors concedes that there have mistakes on the company’s part which have led to the Nano’s perception as a poor man’s vehicle. He insists that the car has always been intended as a family car, an affordable all weather car. He further added that once the sales for the car are back on track, the company plans on introducing new colors and upgrade the interiors without increasing the prices.