Question 1

Tata Nano is a compact vehicle that was produced and showcased by Indian
automaker Tata Motors, principally in India, as a modest back-engine hatchback
expected to speak to current riders of bikes and bikes — with a dispatch cost of Rs
1,00,000 or $2500. Delays during the production line migration from Singur to
Sanand, early cases of the Nano bursting into flames, the impression of the vehicle
being perilous, and compromise in quality due to cost slicing are some of factors
behind Tata's failure to attract Indians.

Here we present the case study of Tata motors – Nano case and find out why did
Tata Nano Failed and never gained traction despite being termed as the 'people's
car'. Tata Motors anticipated creation of 250,000 every year at dispatch. This didn't
happen. Only 7591 were sold for the model year 2016-17. In 2017, Tata Motors said
assembling would proceed because of Tata's passionate promise to the project. In
2018, Cyrus Mistry, previous Chairman of the Tata Group, called the Tata Nano a
venture in progress with China, with a generation overhaul scheduled in May 2018.

Tata Motors' Nano Initiative

After effectively propelling the ease of Tata Ace truck in 2005, Tata Motors started the
advancement of a reasonable vehicle that would speak to the numerous Indians who
ride motorcycles. The price tag of this nitty-gritty auto was brought somewhere
around getting rid of the most superfluous highlights, diminishing the measure of
steel utilized in its development, and depending on ease of Indian labour.

The superfluous highlights include the evacuation of the traveller's side wing mirror,
having one wiper sharp edge, having just three fasteners for every wheel, and the
expulsion of the fuel filler top from the fuel tank. The presentation of the Nano got
much media consideration because of its low cost of Rs. 100,000. The vehicle was
promoted as "The People's Car".

Why Tata Nano Failed?

Ratan Tata stayed faithful to his obligation and the Indian market saw Nano set on
the streets in the long stretch of July 2009. At the start, the deals for the vehicle were
high. It then began to decay on every month. There are a few reasons of failure
which justify Tata Nano's downfall,

Failure in marketing the vehicle was the main reason behind Tata Nano's Failure to
attract customers.
TATA Nano promotes itself as the least expensive vehicle.

No one needs to drive the least expensive vehicle.

Purchasing a vehicle is identified with economic well-being and distinction in the

public arena.

"Cheap" and "lakhtakia" used in Tata Nano's advertising for advancement and
showcasing all over India disturbed its image.

The engine was an issue.

There was a buzz in the universal media, "What if Nano becomes successful? It
would mean an end to the second-hand car market."

Problems with the Car

Awful picture of the shoddy vehicle.

Several cars caught fire. Thus, in spite of its low cost, people refrained from buying
it.

Media channels covering the news related to Tata Nano underestimated the vehicle.
In any case, they were correct.

The car was not fit for sloping territories.

The motor used to make a great deal of clamor, and individuals even compared it
with an auto.

Insides were dull with inadequate leg space.

The whole assemblage of Nano was light and prone to damage on even the slightest
of knocks.

Other Reasons

Tata Nano got around 200,000 appointments at first. This made Tata Motors
complacent and it didn't bother about new advertising strategies. New publicity
procedures were essential to keep the enthusiasm of the individuals unblemished.
But it wasn't done. When the main flame episode was accounted for, the ad system
then just looked responsive and upgraded rather then focusing on negative attention.
Nano was viewed as an attraction for individuals who never thought of purchasing a
vehicle. It was focused on engine cycle riders, recycled vehicle proprietors, and
different families in the lower white collar class gathering. This prompted some
degree of opposition. According to the intended interest group, the media and the
general public acknowledged Tata Nano as a poor man's vehicle.

Ratan Tata in his previous question and answer sessions referenced that he wanted
to position Tata Nano as a 'reasonable, all climate family vehicle".

At the point when Nano later raised its cost to conquer the negatives of the principal
model, the cost turned out to be a lot higher. The top-end Model of Tata Nano (2014)
was cited at an on-street cost of around Rs.2.6 lakhs in Bangalore. This sort of
evaluation with the equivalent Nano model which the poor man likewise claimed,
confounded the clients.

Why did Tata Nano fail?

There are a few reasons of failure which justify Tata Nano's downfall,
Failure in marketing the vehicle was the main reason behind Tata Nano Failure to
attract customers.

Tata Nano promotes itself as the least expensive vehicle.

No one needs to drive the least expensive vehicle.

Purchasing a vehicle is identified with economic well-being and distinction in the

public arena.

"Cheap" and "lakhtakia" used in Tata Nano's advertising for advancement and
showcasing all over India disturbed its image.

The engine was an issue.

There was a buzz in the universal media, "What if Nano becomes successful? It
would mean an end to the second-hand car market."

Why did Tata Nano fail to attract customers?

Delays during the production line migration from Singur to Sanand, early cases of
the Nano bursting into flames, the impression of the vehicle being perilous, and
compromise in quality due to cost slicing are some of factors behind Tata's failure to
attract Indians. Also Tata Nano promotes itself as the least expensive vehicle. No
one needs to drive the least expensive vehicle.

Is Tata Nano still available?

Tata Nano is no longer available in the new car market.

Is Nano car still in production?

No, Tata Nano is no longer manufactured.

What went wrong with Tata Nano?

Tata Nano got around 200,000 appointments at first. This made Tata Motors
complacent and it didn't bother about new advertising strategies. New publicity
procedures were essential to keep the enthusiasm of the individuals unblemished.
But it wasn't done. When the main flame episode was accounted for, the ad system
then just looked responsive and upgraded rather than focusing on negative attention.