Tata’s Nano bomb

Tata group has once gain shown that it is a responsible corporate citizen and has maintained the heritage that is has received from its predecessors. Mr Ratan Tata’s desire to produce a people’s car was ignited when he once saw a complete family riding on a scooter, male head driving the vehicle, wife sitting behind with a kid and another kid in the front. He felt the need to provide a safer and convenient mode of transportation to the people. He discussed this issue with many and initially everybody scoffed at him, saying that it would be impossible to build such low cost car on a long term sustainable basis. He remained determined and now we have in front of us what he once dreamed.

People’s response to the new car is tremendous. Everybody is excited about the new car. The positive reviews are just pouring in. Moreover, many other major players have gone back to their board room to develop strategies to capture this newly created marketing segment.

In India, people’s disposable income is rising. So a big segment of the population is now aspiring for a better life and bigger cars. But still a huge chunk of the population is still in the lower middle segment, which rides on two wheelers. Nano car targets that segment. But if one goes to the people’s psychological level, possession of car has also to do with one’s social status, apart from the convenience. I have seen many people in North India demanding a car in marriage, not because their prime concern is safety and convenience, but because they want to show to other people in the same community and social hierarchy that they are superior to others. My concern with the Nano car is how this issue is going to be addressed. When everybody will be having the same kind of car or in other words, when everybody can afford the car, then where is the psychological advantage of possessing a car. Moreover, anybody possessing the Nano car will be considered as not belonging to the upper class. So the real market for this car actually that population which really can’t afford to have car. And this segment is a huge untapped segment residing in Tier 2 and Tier 3 cities.

Many a people have raised concern about the increased pollution level with the roll out of the new car. First of all I would say that everybody has a right to own a car. If pollution is really a national concern then everybody should be equally responsible in addressing this menace. We can’t deny a person from owning a car simply because he belongs to lower middle class segment. What we need to do is to improve our infrastructure and develop clean technologies. Tata Nano assures us this is going to happen. The emission level due to the car will be lower as compared to two-wheelers.

Tata Nano represents not just the physical structure or the body of the car; it represents the embodiment of somebody’s vision and aspiration of a millions of prospectus users.