Tata Nano, the cheapest car in the world, was launched by Ratan Tata in 2008 and hit the peak of popularity with worldwide appreciation.
Immediately after its launch, the car was overbooked by people throughout the country.
However, Tata Motors hasn’t produced a single unit of Nano since 2019. Let us look at the reasons behind such decline.
- Mass Production: Tata Nano was high in demand after the launch due to which Tata Motors decided to do mass production in Singur, West Bengal. However, the locals at Singur were not okay with it and refused to give the land. Tata Motors had to shift their entire production unit to Sanand, Gujarat that took another two years. By this time, the hype for Nano wasn’t the same anymore.
- Price: Launched at just Rs 1 lakh, the price of Tata Nano eventually increased to 2.59 lakh.
- Accidents: After many failures, the downfall of Tata Nano became a hot source of news for media portals. There were news articles written about Nano cars catching fire and having frequent accidents. Many people started doubting its efficiency and safety owing to its low price.
Nevertheless, many experts still say that Tata Nano was an innovative idea. However, the idea was not backed by right positioning and communication strategy that led to the failure of Nano.