Tata Nano Awarded Gold at the Edison Awards 2010

Tata Nano has won the Gold Prize at the Edison Awards 2010. The award was given in the transport category for the car’s unique design and low price. Tata Nano was introduced in 2008 as the world’s cheapest car which is priced at $2,500.

The good news for Tata Motors has come at a time when the company was facing huge challenge with Nano for its recent fire problems. Two Nano cars were reportedly burnt so far, but fortunately no body was injured. Analysts are saying that the rear engine does not have good cooling system and that is the reason behind this fire problem. Tata is also investigating the matter seriously.

It is really a matter of pride for Tata to win this award, but they should not forget that few more similar incidents could reduce Tata Nano’s brand value further. Edison Awards is named after great scientist Thomas Alva Edison and this award is given to the inventors of innovative products in various categories.

Related article:

indiancarsbikes

Why Tata Nano Will not be Successful in US Market?

It is almost 6 months that Tata Nano cars are running at various Indian cities. It has been more or less a success story for Tata Motors as many people bought this model. The success in India has perhaps encouraged the company to take the initiative to export it to other countries. Well, I don’t think that in the original goal, USA was in the list. However, now, Ratan Tata and his colleagues are eager to market it in America. If really they can do so in the next 2 years then it will become a small revolution for Indian auto industry. 

Tata Nano: Cheapest Car in The World  

Tata Nano is the cheapest car in the world and its price is around $2,500 dollar. The next cheapest is perhaps Maruti 800. Tata Nano was designed and developed in India and Tata Motors created a new trend in Asia in the small inexpensive car segment. Now, many companies in India and China are eager to produce small and inexpensive cars. I guess that in the next 5 years, we will see many such cars. However, until now, no company could produce a cheaper car than Nano. And the models that are in the pipeline or in the planning process won’t beat this price either- not for the time being at least.

Reception in India

The reception in Indian market has largely been positive. Most people like the car because it is not only cheap but also fuel efficient (26 kilometres per litre). This is an important factor in the Indian market. India imports most of its fuels and that is why fuel efficiency is always a factor. Moreover, Nano is targeted towards the middle class income group. So, they cannot afford to spend a lot of money after gasoline. However, Nano could not unsettle Maruti from the market leader in the Indian auto sector. Thus, it sold well but not enough to increase the market share of Tata Motors significantly.

US car market not ideal for cheap car

Yes, if you have any idea about US auto market then you must have known that it is not an ideal place for small and inexpensive cars. USA is the richest country on earth and people here can easily afford to buy expensive cars and even they care less about fuel efficiency than Indian consumers. So, it will be an interesting thing to see whether Nano can become successful in USA. I don’t think that it will be a success there and I am stating my reasons a little later in this entry.

Safety Standards

This is one area I think that Nano may struggle in US market. The safety standards are very high in America. Until now, we have not seen any major problem with safety standards of this car but we have to remember that it mainly has been running in Indian roads. Secondly, I am also interested to see whether Nano can pass the environment requirements in USA.

Price will be $8000?

It is sure that the price of Tata Nano in USA wont be $2,500. First of all, it is the US market and Tata Motors will have more production cost if they want to set up a manufacturing plant in America and produce it there. Even, suppose they want to ship it from India, still, they have to bear the shipping cost and have to spend a lot of money to promote the car among American consumers. Finally, I am sure that they will need to make some adjustments to meet the strict US rules on safety and environment. Thus, the price will go up and there are some reports that the price of this car in America will be around $8,000 which is more than 3 times of the price in India.

Why Nano won’t be a success in USA?

I have already stated that this car will not be a success in USA. I feel that first of all, Tata is not a familiar name among the people in America. Secondly, small and inexpensive cars do not have the same attraction to America consumers like their Indian counterparts. For US people, the cheapest car in the world does not sound anything special. Instead, they always look for quality and comfort. Thirdly, I don’t think that Tata can afford to carry out massive promotional campaigns to familiarize its car.

Economic Times reported:

The world's cheapest car is being readied for sale in the US, but by the time India's Tata Nano is retrofitted to meet emissions and safety

standards, it won't be that cheap.

Tata Technologies Ltd., the global engineering arm of the Tata group conglomerate, brought the tiny car to Detroit as a publicity stunt for the engineering group.

Indian car companies need a vision to enter US market

Japanese car companies have been there in US market for many years. Korean car companies are successful too. Now Chinese car companies are entering this market. However, Indian auto companies are still not present here. I don’t see any vision among Indian auto companies in this regard. They should have a vision and some clear goals in this regard. After all, US market is the most attractive auto market.

So, all the best to Tata Nano in its journey to the US market.

(Written on 14 January 2010)

Tata Nano: The People’s Car Shown at Delhi Auto Expo

The much-awaited Tata Nano has been unveiled earlier this year in India. Dubbed as 1-lakh car in India, the passenger car which Tata Motors claims world’s cheapest car has been showcased at the New Delhi auto expo. Tata Group chairman Ratan Tata drove the car himself on the stage in front of hundreds of car enthusiasts.

Ratan Tata announced to introduce a small car priced 1 lakh four years back in 2005 and the car came into appearance in earlier this year. Tata has already received lots of pre-orders for the car and it is expected that the company will start delivering the cars later this year. Here, I am quoting some lines from Alibaba about the specifications of Tata Nano:

At the Auto Expo in New Delhi, Ratan Tata drove the Nano, which the company calls the People's Car, onto the stage and said it would still have the price tag of 100,000 (approximately $2,500) rupees promised four years ago, though commodity prices have since risen. "That's because a promise is a promise." In India, it's called the 1-lakh car ("lakh" being the Indian equivalent of 100,000).

So, you can see that Tata Nano has all the reasons to rock the Indian car market in the next few years. Because of its price point, the two-wheeler market will also be affected in India. Though it seems that Tata would make huge money through this model, the problem is that profit margin for Tata Nano will be very small.

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.

Will Tata Nano be Successful in USA?

Tata Nano is the recent craze of India’s auto market. India is a price sensitive market where price plays a big factor when it comes to become successful in any business. Tata Nano costs just $2000 (about 1 lank Rupees) and it seems that Tata Motors could grasp a big chunk of market share in Indian car market. It is also considered to be a threat for two wheelers in Indian market mainly because of Nano’s price tag.

So far, Indian market was considered to be a price sensitive, but due to economic recession, it seems that American consumers have also become very conscious about price and they are highly attracted towards the products which will cost them a lot less than a typical one, but would offer standard features. Though Tata Nano is a low-cost passenger car, it looks like a gorgeous one, and its periphery design would not let you believe that the car is available for such a low price.

Tata Motors can take smart move by focusing on American market, besides its large domestic market. For American market, Tata could offer an improved version of Tata Nano, offering some improved features with a slightly high price tag. To be honest, this is a big chance for Tata have a bite on American car market.

Maruti Bhandare: Most Famous Potential Tata Nano Owner

Tata Nano, the much talked-about 1 lakh car, was launched last month with lots of hopes and expectations among the car owners. Tata Motors started receiving advanced bookings for Tata Nano, which is also known as People’s Car, from 9 April 2009. The company has already received more than 1 million booking for the car Nano, and there are many who even already paid 75% of the total price.

Maruti Bhandare is a cobbler by profession who has now become the most famous would-be owner of a Tata Nano car. Maruti Bhandare has already paid US$2,819 as advanced booking money for a Nano Deluxe. Mr. Maruti has already made the newspaper headlines with his booking for a Nano Deluxe. Even news channels are also reporting on him seriously.

Well, there are many who are now keen to become an owner of Tata Nano which seems to be the most lucrative car in India now, mostly because of its price. There are also reports out in the media that even the owners of BMW, Audis and Mercedes have also made booking for Tata Nano. It seems that Tata Nano is going to bring Tata Motors a big chunk of market share of India’s big car market which is yet to be unraveled properly.

Related article:

Asia Times

Tata Nano vs Motorcycles

Tata Nano is going to be in the market from tomorrow. Mehdi Hassan has written about it in South Asia Blog: Will Tata Nano turn around Tata Motors’ luck? Well, I have to say that the car has got a lot of media publicity in the last few years. At one stage, some people might have thought that it was impossible to sell a car for $2,000. Tata Motors is making it possible and they deserve all the credit in the world for this. One of the things that many people are now saying is that whether the Nano will be an alternative to motorcycles? The price of this car is very close to the price of a motorcycle. So, there is no doubt that many people would think that whether they should buy a motorcycle or a Tata Nano.

As for me, I can neither drive a motorcycle nor a car. So, they look same to me. However, many people I know who own a motorcycle always dream of having a car someday. So, there is a possibility that many families would from now in India would go for Tata Nanos instead of motorcycles.

Tata Motors Prepared for Tata Nano Rs 1 lakh Car Launch

Tata Motors has taken extensive preparations for the much-awaited launching ceremony of Tata Nano which is known as People’s Car that costs Rs 1 lakh. This is reported to be the world’s cheapest car and that is why, curiosity about the car is high among the car enthusiasts. In the presence of more than 1000 guests and more than 100 media companies, the attractive car will be launched and thus, it would be the first passenger car in the world hitting the Rs. 1 lakh mark.

The estimated cost for the total event would be Rs 1.5 -2 crore in which a staggering amount of Rs. 1 crore will be paid to Showdiff, the event manager. Rs 30 lakh will be spent for the rental cost of the venue with the facility of 1000 car parking. As you can see that there will be a large number of people gathered together for the event, security has become a big issue to be addressed and Tata Motors has already hired a private security agency for ensuring the safety of the guests and it is expected that more than 150 security personnel will be deployed in the venue along with more than 200 local policemen and 30 bouncers will also be there to prevent any kind of chaos.

Related article:

NDTV

Tata Motors Planning to Roll out Diesel Variant of Nano in 2010

Tata Motors, India’s no. 1 car maker, is now planning to launch the diesel variant of Nano by the middle of next year. You already know that Tata Motors will launch Tata Nano, which runs on petrol, on 23 March 2009. According to some company vendors, Tata has already asked them to supply parts for the diesel variants of Tata Nano and it is expected that vendors will start supplying by August or September this year.

Reports have it in the media that Tata Nano’s diesel variant would cost Rs 2 lakh. The petrol variant of Nano without AC goes on sale for Rs 1 lakh, while its deluxe version is priced at 1.4-1.6 lakh. Though Tata Motors has not said anything officially about the launch of Nano’s diesel variant, it is highly expected that the diesel version of Tata Nano will hit the market sometime next year.

Related article:

Economic Times