Introduction Of NANO In Auto Sector
“Great things come in small packages” and so is NANO, peoples car. Mr. Ratan Tata envisioned that every Indian must own a four wheeler, most affordable car with all basic facilities in any other expensive car. And today the most awaited car is a part of the ever growing automobile sector. Ratan Tata, the Chairman of Tata Motors, began development of the world's cheapest production car in 2003, inspired by the number of Indian families with two-wheeled rather than four-wheeled vehicles. It was however not a easy start for the Tata family. After much speculation, Tata Motors announced on May 19,2006 that it will be manufacturing Tata Nano from Singur, West Bengal. The introduction of the Nano received media attention due to its targeted low price. TheFinancial Times reported: "If ever there were a symbol of India’s ambitions to become a modern nation, it would surely be the Nano, the tiny car with the even tinier price-tag. Rival car makers including Bajaj Auto, Fiat, General Motors, Ford Motor, Hyundai and Toyota Motor have all expressed interest in building a small car that is affordable to more middle-class consumers in emerging markets. The bulk of demand there is for small cars because people are much more sensitive to fuel prices. The Nano is alleged to have severely affected the used car market in India, as many Indians opt to wait for the Nano's release rather than buying used cars, such as the Maruti 800 (Suzuki Alto), which is considered as the Nano's nearest competitor. Sales of new Maruti 800s have dropped by 20%, and used ones by 30% following the unveiling of the Nano. As one automotive journalist summarises; “People are asking themselves—and us—why they should pay, say, 250,000 Rupees for a Maruti Alto, when they can wait and get a brand new Nano for less in a few months’ time, a car that is actually bigger”
Never before has a single project in India generated so much of interest at the global level. Keeping the promise, made four years ago, the launch of the Rs.1 lakh car in 2008 from the house of Tatas has indeed received rave reviews both in India and around the world. As stated by Mr. Ratan Tata, Chairman of the Tata Group that “The vision was to give the people of India a car which is not produced anywhere else in the world. Through Nano, which denotes high technology and small size, I have tried to provide a reliable mode of transport to every Indian family”. Auto sector basically consist of various segments of cars like the ‘A segment’ which consist of hatch back or small cars, the ‘B segment’ of midsize cars, the ‘luxury car segment’, etc. But Nano revolutionized the auto sector by introducing all together a new segment of cars, famously known as “The Nano Segment” or “Lakhtakia car”. The world’s cheapest car which is 3.1 metre long from the Tata Motors stable has three variants – standard and two luxury models. Though it is eight per cent smaller than Maruti 800 [bumper-to-bumper], it is twenty one per cent more spacious from inside. As stated by a Delhi-based senior auto journalist of a U.S. wire agency that “It is a milestone for not just Indian automobile industry but for the entire global auto sector. It will give some jitters to all global car-makers who are now focusing on small cars too”. If we see the global auto sector, Tata Motors ‘Lakhtakia car’ poses a challenge for almost all the automobile companies of the world. Especially after winning ‘Jaguar and Land Rover’ deal which is contributing as icing in the cake for the company. For example in the U.S., the cheapest car comes in a price range of $10,000-$15,000. But now if Tata Motors decides to launch their Nano in U.S. market, it could be priced at $2500, which will be serious competition for U.S. auto makers. Even the European markets are not spared of the Nano wave . Tata motors Nano has come out with a great design which even matches the European standards of safety and has...
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