Thursday, December 2, 2010
Tata Nano on fire in a bad way
There has been an 85% decrease in the sales of the world's cheapest car due to fire outbreaks in the engine as well as an increase in the price. It is an interesting example of a less developed country trying to enter a high-end product market and a sure sign of India's transition to more technologically advanced products. If they are successful in implementing the safety upgrades I think they should market to African countries.
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3 comments:
This is really interesting, because the other source says that the 85% decrease in the sales is due to the inability to acquire loans. Tata nano cars have been reported to be "on fire" before in the early Novembers, but upgrades are used as a preventative measures.
Although, Tata nano is the cheapest car in the world, it should certainly target it to lesser developed nations instead of entering the US market due to the preference of Americans for bigger cars. Tata is a very reputable corporation in India. Recently, it acquired British car manufacturer Jaguar Cars Ltd. Hence, acquiring loans can be a problem for Tata due to its Leveraged buyout of Jaguar Cars Ltd.
Tato Nano could have success in the US and European markets. Microcars have seen growth in sales in more urban areas. Tato Nano is cheaper than Smart cars. The problem is that these smaller cars are not that safe. Imagine a Tato Nano vs. a semi-truck in a head-on collision - not a pretty sight. I agree that it will be hard to sell this vehicle in the US and Europe if these safety concerns cannot be alleviated in some way.
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