Failure of Dream Car of Ratan Tata
Tata Nano was the dream of Mr Ratan Tata, the chairman of The Tata group. When Ratan Tata declared to launch a Nano car, it was the biggest opportunity that offered to improve the quality of millions of Indians who could not afford a luxury car. We all know that every dream cannot become true wholly. The failure of the car is the best example towards that. Here, I shall discuss some of the reasons for the failure of Tata Nano.
- The first reason was the increase in the level of competition. The price of second hand Maruti 800 spiralled down in the market. Also, Nano was not anymore a one-lakh-car as promised by Ratan Tata. When introduced, Nano was the cheapest car on the market. Currently, Nano XM car price is 2.99 lakh compared to the Maruti Alto 800 price marked from Rs. 2.8 lakh onwards.
- The second reason was adversely affected by the price. When any company produces a product at a minimum cost price, it will impact the quality of the product. Several Nano car engines caught fire in the first two years. Need to say any more for the public to hate Nano car. After that Tata Motors offered an extended warranty for both new and existing cars but the damage to the reputation of the Nano car was done.
- The third reason was the delay in production in the initial days due to the shifting of the process from Singur; West Bengal to Sunland, Gujarat. The temporal hiatus caused created high expectation over the car. The public thought that the company was creating a new feature on the existing model of Nano cars. But, Tata Motors launched a wholly new series of Nano car. The new model, unfortunately, did not go well with the public - in terms of its design; performance or price.