Seven years after it was launched and termed an epic failure, the Tata Nano is now striving to make a comeback.
Tata Motors is today relaunching the all-new GenX version of the car, repositioning itself has an aspirational car and not the world's cheapest car.
This is the third attempt by the company to save the model, which was touted as the people's car by then group chairman Ratan Tata at the launch in 2009. The GenX version is being launched with new aspirational features like automatic manual transmission, openable boot and bluetooth phone sync audio system.
According to media reports, the attempt is to bury the cheapest car tag and also to lure the first time buyers.
Here is a short history of a much-debated, much-expected car, which just failed to live up to the expectation:
1) World's cheapest car: Launched in 2009, the Nano was priced around Rs 1,10,000-1,70,000. Ratan Tata said the aim was "to give Indian families an affordable transport means, a small car which was very low in cost," he said. He hoped "major part of the country will be able to sit in it". While the pre-launch bookings - about 3 lakh - gave rise to hopes that the car will indeed be feather in the cap for the group, it failed miserably. Sales plummeted soon after the launch. Now, monthly sales of the model stand at a disappointing 1,500 to 1,800 a month.
2) What went wrong: The biggest problem with the brand was that it was marketed as the world's cheapest car. "I think they did the wrong piece of psychology. Tata Nano is hard to save. My view is, I would kill the brand," brand espert Jack Trout told ET in an interview. "The damage is done there. The most telling thing they did is calling it a 'cheap car'. People don't want a 'cheap' car, which their neighbours can see. Especially in India, there's a prestige thing about buying a car," he said. Just two weeks after Trout made the comment, Ratan Tata too accepted as much in an interview on CNBC. "It became termed as a cheapest car by the public and, I am sorry to say, by ourselves, not by me, but the company when it was marketing it. I think that is unfortunate," he said admitting the mistake.
3) The most political car ever: The model could easily be termed as the most political car in India. Initially, the company's plan was to produce the car in West Bengal. The state government, led by the Left Front, had acquired about 1000 acres of farm land under the Land Acquistion Act, 1894. But Mamata Banerjee-led Trinamool Congress started an agitation against the alleged "forcible acquisition of farm land". The group had to finally shift their plant to Sanand in Gujarat, cementing the anti-industries image of West Bengal, boosting pro-business image of Narerndra Modi, then Gujarat chief minister. Later, Tata blamed Mamata for all the ills of the Nano. "The shifting of the plant had a very high negative cost to us in the sense that when we launched the Nano it created global excitement and we had 3 lakh of order with full payment and a waiting list of two years when we announced the product. In the years that we lost in moving from Singur to Sanand much of the excitement died with it. People disbelieved that there were any such products while competitors got a chance to bad mouth the product in its absence in the market," Tata said in Kolkata last year.
4) Conspiracy theories: That was not all. Tata even blamed corporate rivals for troubles the plan in Singur faced. Suzuki Motor Corporation's chairman Osamu Suzuki was a critic of the Nano car. Tata's allegations without naming the rivals had sparked controversy. "They will be mentioned at an appropriate time," Tata said at the launch of the Nano. But he never did.
5) The metamorphosis: Despite the failures and damning advises to kill the brand, the group just cannot stop dreaming about the success of the car. The company refreshed the car in 2012 and also launched Nano Twist in 2014. But the sales have not yet lived up to the expectation. The relaunch and repositioning of the car comes in this context. Girish Wagh, senior VP, programme, planning and project management for passenger vehicle division, at Tata Motors, tellsThe Economic Times that it is a 'make or break' moment for the company. In developing the new model, the ET report says, the company has incorporated feedback from 1,000 Nano users and also 1,500 owners of rival models. The GenX will be be priced at Rs 2.2-2.9 lakh.
6) The new features: The new car has a stronger body, small boot and power steering, says the ET report. Moreover, the automatic variant will add to the ease of use. The feature will give comfort in bumper to bumper traffic, says the report. The GenX will come with 21-odd variant options, with different body colour and interiors. According to the report, the engine has been recalibrated for increased fuel efficiency. And bringing relief to the company, dealers and vendors are upbeat about the GenX, says the ET report. "...I am sure the vehicle with all its functionalities will get good response from the market," a dealer has been quoted as saying. He says he has already got 10 bookings. The dealers are expecting 5,000 units sales a month.
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