Corporate Fact Behind Launching of NANO Car

Generally when we all discuss about tata nano launching scenario, we always get emotional. do you know the reason why ? 


This is because you have learned or listen the story which tata company marketing experts planned to attract the customers.

As per this story :Tata-Nano

It was a sunny day and Ratan Tata were travelling by his car and he saw that one of the family consist of husband,wife and two children were travelling on one motorcycle. he felt so bad thinking that how Indian customer is adjusting with his money and funding and he came up with an idea to provide nano car which will be made for family to have comfortable ride at minimum prize. and there fore tata nano introduced at cheap rate that is Rs.1 lakh.

if you think this is the real story then you should read our report : 

Practicality :

Tata-MotorsAs a business man every entrepreneur always look for earning, more than working for social cause. here Ratan Tata analyse the consumption pattern of Indian customer. in the year 2008 the condition of indian consumer was different. at that time Indian consumer was looking to full fill their primary needs. Ratan Tata also realized that only rich people are spending money on car because at that time car prizes was minimum 3.45 lakhs which was not affordable for common people there fore till 2006 the production of two wheeler in india is far more than other types of vechicle recorded 82.3% in total production. With this reports tata surveyed and analyse the following :

  • 30% people are below poverty line
  • 60% people can afford to have a bike but not afford to purchase car
  • 10% people are having strong purchasing power of to have both of this.
So here, he rightly targeted middle class people in order to have attraction and competition in the sector.  his ideology was also a made a perfect pick up for nano concept. 

As per his ideology in 2006 :

  • price of the two wheeler was  lied between 45-75 thousand
  • three wheeler was came in approximately rs.50-75 thousand
  • and four wheeler prices was on hike with minimum Price of Rs.3.75 lakhs.

In those year people had a desire to purchase a car but because of high prices they only afford bikes and with this analysis Mr. Ratan Tata got a findings that middle class audience will  be perfect target for nano as, if they can spend 45-75 thousands to purchase to motor cycle they will not mind to spend more 25 thousand and have more security for family. The car will full fill individual’s desires and ultimately company’s profitable gain. Even company will have opportunity to have a strong competition in the market with price leadership.

There fore with this facts NANO car was launched in Indian Markets by Tata company with the intention to provide cheap car to customer and fetch the attention of the middle class customers. 




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