Why tata nano failed in indian market

The Tata Nano failed to be the innovative car it was aspired to be and is still considered one of the biggest tragedies in the history of the Indian Automotive Industry. Problem is not with nano car.

We Indians will buy a 10 year old alto for 2L even though it has nothing better to offer. The nano in our house is 11 years old and still going strong. The point mentioned in the article that Tata Nano had cheap material is absolutely false. It has had the most innovatively designed parts with quality. It will any day put to shame the basic Kwid versions interiors to shame.

I have been using a nano for past 6 years without any issues. This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign in. Log into your account. Forgot your password? Create an account. Sign up. Password recovery. Several users complained that the Nano caught fire in the middle of the road for no real reason. This pointed attention towards faulty production and defects in the design of the Nano. Tata Motors claimed that the reason for the fire was related to the foreign electrical equipment used in the exhaust.

Whatever the reason may be, the fact remains that the Tata Nano was completely ruined in the public eye. People no longer trusted in its safety. Compromising on comfort is an acceptable error, however, compromising on safety is an unforgivable offence. This proved to be the final nail in the coffin for the Tata Nano.

Thus we see that the wrong marketing strategy centred around the image for the cheapest car of India, the failed promises and delayed delivery associated with the failure of the Nano plant in Singur and the issues with the safety of the car combined to lead to the Tata Nano failure.

After declining sales for a few years, the production of the Nano was stopped in It remains one of the biggest failures of the Tata Group. Let this be a lesson to show that even the infallible Tatas can make mistakes and have failures. Hopefully, this will be an isolated event and not be repeated in the myriad other initiatives the Tatas are involved in. Did you enjoy what you read? Subscribe to our newsletter and get content delivered to you at your fingertips!!

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First Name. Last Name. Enter Your Email or Mobile.. Enter OTP. Create Password. Enter registered Email or Mobile. Submit Your Blog. Important Notes! Why Did Tata Nano Fail? What happened? How did a product that was so hyped up fade so fast? Let us get started then, shall we? This seems like the perfect plan, does it not? Then why did it fail?

However, this is where their problems started. Happy investing! You might also like Want to share Your Blog? Upcoming IPOs in India, are you ready to invest? What is a Depository in Demat Account. The automaker was under the misconception that the low price would be enough to motivate people to buy the Nano. After all, who wants a daily driver that looks cheap and is poorly built? Simply put, those who could afford a higher end Nano did not want to drive it.

Also, when people are status conscious, they look for things that make them look wealthier than their neighbors and colleagues. An older, used sedan or hatchback that was more expensive when it was first launched would have more value for such a market than a new one that was marketed as cheap.

One of the most challenging aspects of marketing a vehicle like the Nano is advertising. A basic rule of advertising is to create an emotional connection or a bond with the audience that makes them want to experience the product. Tata failed to do so with their advertisements for the Nano.

While some TV commercials were fairly good, most of their audiences simply could not relate to what they were seeing on screen. If the bad positioning was not enough, the fact that people also could not relate to the advertisements made things a lot worse. In a country where emotions play such a vital role in everything, this disconnect spelled doom for the Nano before it even hit the roads. One of the most significant problems with the Nano was its safety rating.

The Nano lacked airbags and proper adult protection. It also did not meet basic UN safety requirements and was not as safe as Tata had claimed and expected it to be.

The Nano was also very lightweight which made it a very bad choice for the usual Indian roads which are not always smooth as silk.

That also meant that it felt unsafe to drive because of the simple lack of bulk. On top of that, several incidents were reported in which the Nano caught fire for mysterious reasons.

The company claimed the cause was faulty foreign electrical equipment linked to the exhaust. To make matters worse, they refused to recall the vehicles with defective equipment and instead extended the warranty period to four years, while offering to replace the supposedly faulty parts in those already sold. Bad customer service also added to making the Tata Nano a failure. The company simply ignored this crucial aspect and, while everyone focused on how many units caught fire, no one talked about how many were running on the roads just fine.

That also convinced the general public that the Tata car was so cheap because the company cut corners in the manufacturing process. While this would not have been a major issue on its own, when combined with bad marketing and advertising, it became one of the biggest reasons for first-time car buyers to avoid the Nano.

The Nano was supposed to be manufactured in the new plant in West Bengal. Unfortunately, the company could not acquire land for the facility and instead had to start manufacturing from their Sanand facility in Gujarat.