Ratan Tata’s brainchild ‘The Tata Nano’ may soon become a car of the past in India. As reported by The Hindu Business Line, the company has finally made its mind to stop investing any further in Tata’s Nano which was launched in the year 2009 by Ratan Tata himself. Sale figures of the Tata Nano have failed to proceed. Furthermore, the Tata Nano has not been able to see any growth in the Indian market. It was also reported that out of all the four wheelers manufactured by Tata Motors, launched as world’s cheapest car -Tata Nano is the worst performer in the segment.
What led to the fall in Tata Nano’s Sale?
It was reported that one of the major factors that reduced Tata Nano’s sale drastically was the price factor. Tata Nano, Ratan Tata’s brainchild, was launched by the company in the year 2009 as ‘World’s cheapest car’ with an inaugural price of Rs 1 lakh, but currently the Tata Nano is being sold at a price over Rs 2 lakh which made it tough for the Tata Nano to capture a share in the segment. With prices fluctuated more than double future of the small car became dark.
Why would Tata Nano drive out of the Indian market?
Ten years since the launch of the cheapest car – The Tata Nano, which was Ratan Tata’s brainchild and a path breaking endeavor of Tata Group, Tata Nano has seen a continuous downfall in the sale figures in last couple of months. Due to the losses and additional financial burden the salt-to-software conglomerate Tata Group has decided to ‘Drive Out’ the Tata Nano out of the Indian market soon.
Reasons that may be behind phasing out Tata Nano
As per the report, it will be mandatory to clear the crash-test from 2019 onwards. If the sale of the Tata Nano has to be continued in India, it would be necessary for the Tata Nano to clear this test which would certainly need fresh investments which Tata Motors may be averse to make.
In addition to this, if the company chooses to keep the Tata Nano running in India, it would necessitate investing more to make Tata Nano Bharat Stage VI emission norms compliant. This change is expected to come into effect from 2020.
With such a huge financial burden on Tata Motors and the Tata Nano already losing out on sales in the Indian market there seem minimal hopes of the car to survive in the market and finally be shown the outer way soon.
Source: Live Mint
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