My Take on Tata Nano

January 13, 2008

No No, this isn’t another post to talk about the launch of Tata’s 1 lakh car or about its features or Specs. Theres load of information over the internet regarding this. This post is about why or who should buy a Nano? Or should one buy Nano ? Lets compare Nano with Maruti 800 to see where it stands. Maruti has higher engine capacity at 796cc compared to Nano’s 673cc.But Nano is smaller compared to Maruti 800 yet has larger space inside comparatively. Thats a great achievement. Thats because the engine in Nano is fitted at the back similar to an auto. Parking should be much easier now and so should be finding spaces to park.In terms of fuel mileage there is not much difference. Tata’s claim that Nano will give 20 km per litre and maruti gives around 21 Km per litre. But a lot of difference lies in the price. Maruti 800’s base model is priced at 1.94 lakhs + taxes and Nano’s base model is priced at 1 lakh. That means people can buy 2 Nano instead of 1 Maruti 🙂 And thats exactly what has happened. Lot of them have postponed their decision to buy a car waiting for Nano. And most of them are planning to buy more than one car. Tatas have created a revolution by launching such a low cost car. This has posed a tough competition for others in the industry. Given the traffic condition in each metro, people find there is no use of buying high-end vehicles and SUV’s. You will never get to drive at such fast speeds because of traffic and a signal placed at every arm’s length. My manager is planning to sell his Ford Fusion and get a Nano if its a hit. And why not? given that his family comprises of just 4 people Nano will serve that purpose. My point is this car is a steal especially for those married coupled who have a baby. We know that driving bike with baby in hand is risky. Such couples get stranded in their houses as they hesitate to take the baby along in the bike. They will be yearning for Nano. A typical family in a metro comprises of 2 adults and a child. Given they stay in metro, Nano should be very much affordable. A typical family living in a tier-2 cities say (ex:coimbatore) will comprises of 4 adults and a child. Nano too can fit them all. Working women too would go for Nano. Those who use public transport will find this affordable provided they have been given attractive EMIs to pay off auto loans. And those who use scooty/honda/pleasure will go for Nano as it is much safer to ride a 4-wheeler than a 2-wheeler (for themselves ofcourse). And not to forget the Cab Drivers. These where the people who waited for tata nano much more than any other. To ferry employees of MNCs from office to home and home to office,Nano would be the best-fit. But there is a small problem. When Nano starts be used as a cab, people will hesitate to buy it. Remember what happened to Tata Indica. Tata would be better off if it has different color variants so that cabies go for white color and other buyers go for colors like metallic-grey. I mean any color that signifies great style and finishing. They might come with a pink variant to attract women buyers too.
What could jeopardize their plans ? Frequent maintenance needed for the vehicle and poor after sale service. Maruti is just so good at this. The Traffic. Just imagine if so many cars get on roads in cities like bangalore and hyderabad. Driving would become a nightmare. Car’s engine is good enough to pull load of 4 Adults. Given the roads in hyderabad where there are very hilly, there remains concerns whether Nano can climb such hilly roads with 4 people in it and say AC is on ? How much is the ground clearance ? safety concerns for the driver incase the car crashes headon. Is there a diesel variant ?
If Nano fares well in each of this parameter then they have revolutionized the auto industry. But that said, Tatas have done an excellent job. Making a promise of launching a 1-lakh car inspite of none in the industry believing in it and keeping up the promise is no mean feat.Kudos to Tata and their team behind this project.

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  1. You have pointed out some facts crystal clear. Very informative.

  2. Very nice post, thanks man!

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