The Small Wonder has been Struggling to Match The Demands of its Target Group after The Settlement of the Initial Hype. The Storm is over. B&E gives a Detailed Analysis of The Past Issues and The Future that Lies Ahead for The Nano
And then came a clinching shocker when I picked up the newspapers in the early hours of December 2, 2010. Each month, the Society of Indian Automobile Manufacturers (SIAM) publishes the latest sales figures of all auto brands in India. In November 2010, the SIAM report said that 509 units of the Nano were sold. This, when auto sales actually grew by more than 40%. And believe it or not, Nano sales were lower than that of Mercedes Benz which managed 518 units in November. Look at it this way: the cheapest car in the world sold 509 units in a month when close to 200,000 cars were lapped up by the Indian consumer.
Quite clearly, Ratan Tata seems to be pre-occupied with other unsavoury things even as his Nano dreams seems to be on the verge of unraveling. At the moment, he is angry (let me add justifiably) with the Radia tape leaks and has even taken the matter to the Supreme Court. But sooner or later (if he is not already doing so already), Ratan Tata must summon his top lieutenants and strategists to revive the flagging fortunes of the Nano. At Business & Economy, we refused to be swayed by the early hype about the Nano becoming the best selling car of history. And now, we don’t think it is time to pronounce that the Nano is a colossal bomb. But surely the time has come to ask that simple and straightforward question: Can Ratan Tata Salvage His Nano Dream?
Our colleagues and reporters in Business & Economy and The Sunday Indian spoke to dozens of dealers and people associated with the auto industry in Guawahati, Bhubaneswar, Ahmedabad, Kochi, Delhi, Chandigarh and many other places. The first impressions that we gathered was that Tata dealers were stubbornly optimistic about the future prospects of the Nano – now based more on hope rather than hype. Most of the Tata dealers blamed the many incidents of new Nanos catching fire and the negative publicity surrounding it as a dampener on sales and new bookings. Says Dinesh Shukla of Ahmedabad based Swati Autolink, “Few instances of firing in the engine are also a matter of concern. Though you can’t state it as a manufacturing defect, but it has created some impact on potential consumers.”
Talk to auto industry analysts and you get a similar sense of hope being the overriding factor when it comes to the future prospects of the Nano. Says Vaishali Jajoo of Angel Broking, “It will not be right for now to say that the Nano has failed in the Indian market. The unit sales fell in the month of November. It was mainly because of the operational shift at the back-end wherein the company is trying to shift the entire production from its Uttarakhand plant to the Sanand plant apart from many other reasons”
Quite clearly, Ratan Tata seems to be pre-occupied with other unsavoury things even as his Nano dreams seems to be on the verge of unraveling. At the moment, he is angry (let me add justifiably) with the Radia tape leaks and has even taken the matter to the Supreme Court. But sooner or later (if he is not already doing so already), Ratan Tata must summon his top lieutenants and strategists to revive the flagging fortunes of the Nano. At Business & Economy, we refused to be swayed by the early hype about the Nano becoming the best selling car of history. And now, we don’t think it is time to pronounce that the Nano is a colossal bomb. But surely the time has come to ask that simple and straightforward question: Can Ratan Tata Salvage His Nano Dream?
Our colleagues and reporters in Business & Economy and The Sunday Indian spoke to dozens of dealers and people associated with the auto industry in Guawahati, Bhubaneswar, Ahmedabad, Kochi, Delhi, Chandigarh and many other places. The first impressions that we gathered was that Tata dealers were stubbornly optimistic about the future prospects of the Nano – now based more on hope rather than hype. Most of the Tata dealers blamed the many incidents of new Nanos catching fire and the negative publicity surrounding it as a dampener on sales and new bookings. Says Dinesh Shukla of Ahmedabad based Swati Autolink, “Few instances of firing in the engine are also a matter of concern. Though you can’t state it as a manufacturing defect, but it has created some impact on potential consumers.”
Talk to auto industry analysts and you get a similar sense of hope being the overriding factor when it comes to the future prospects of the Nano. Says Vaishali Jajoo of Angel Broking, “It will not be right for now to say that the Nano has failed in the Indian market. The unit sales fell in the month of November. It was mainly because of the operational shift at the back-end wherein the company is trying to shift the entire production from its Uttarakhand plant to the Sanand plant apart from many other reasons”
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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