Thursday, April 30, 2009

Tata Nano: A Dream Comes True for Many Indians

Owning a car is definitely a matter of prestige anywhere in the world. In a developing country like India, owning a car is not only a prestige, but also a dream. With the launch of Tata Nano, which is known as world’s cheapest car with a base price of $1,950, the dream of having a car has received a huge boost mostly among India’s increasing middle class families. Indian economy saw excellent growth until recently before the global economic recession started getting aggravated. Indian economy was also eyeing on achieving double digit growth and many businesses flourished during this time, though the current condition is not that much impressive. Because of this economic growth, the number of middle class families increased significantly since the turn of the new century, and thus, the number of potential car buyers also increased in the country, making it one of the fastest growing car markets in the world.

Now that, Indian economy is feeling the heat of global economic slump, the dream of owning a car should have received a huge blow. In fact, Indian car market experienced less growth over the last one year. Now, with the inception of Tata Nano, which is also known as People’s car, it seems that the dream of owning a car has been revitalized among the middle class people. It has been reported that many lower middle class people also booked reservation for Tata Nano.

Tata Motors expected 1 million reservations for Tata Nano during April 9-25. It has been reported that the automaker could not achieve its target, but still the kind response it received is pretty much satisfactory. In fact, the company could not churn out a big part of the reservation in the next one year due to its lack of production facility. Due to political pressure, Tata was forced to relocate its Nano plant from West Bengal to Gujarat recently and the new plant will be ready for production later this year. Naturally, it has been a problem that any other automaker would have loved to have.