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Why TATA NANO Flops in the market

Shabid Ashraf Abhishek Sharma Ankita Singh Neha Dagur Shikha Mathur

Dept. Of Management Studies, Malviya National Institute Of Technology

Abstract: When the Tata Nano, a stripped-down minicar priced at around $2,000, was introduced in 2009, it was marketed as a car that would transform the way aspiring consumers in India and other developing countries got around. But the low-cost automotive revolution fizzled. Selling poorly at home and with exports drying up, the Nano has become a cautionary tale of misplaced ambitions and a drag on sales and profit at Tata Motors. It turns out that those climbing into India's middle class want cheap cars, but they don't want cars that seem cheap—and are willing to pay more than Tata reckoned for a vehicle that has a more upmarket image.

In this study we will see why TATA is trying remake the "people's car," into the "cool people's car." It has given the car itself a face-lift, adding a stereo, hubcaps and chrome trim, raised the price and started a new marketing campaign to give it more cachet.

1. INTRODUCTION

Tata Motors Limited is India's largest automobile company, with consolidated revenues of INR 1,88,818 crores (USD 34.7 billion) in 2012-13. It is the leader in commercial vehicles in each segment, and among the top in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. It is also the world's fifth largest truck manufacturer and fourth largest bus manufacturer.

The Tata Motors Group's over 60,000 employees are guided by the mission "to be passionate in anticipating and providing the best vehicles and experiences that excite our customers globally."

Tata Nano is a micro car model designed to transport four passengers. Produced by the Cars and Engines division of Indian conglomerate