Tata nano failure case study

tata nano case study

Tata motor was so confident about nano, they thought this is going to be a massive success.

But it fails and become one of the most disaster product in the history of marketing.

In this article, I will discuss the 5 big reasons for tata nano failure and tata nano failure case study.

owner of Titanic also claims that: “We place absolute confidence in the Titanic. We believe that the boat is unsinkable.”

“But Titanic sunk and about 1500 people killed with it”.

similar kind of thing happens with nano also.

Tata motors have the same level of confidence and we all saw how miserably it fails.

TATA nano sales figure:

Tata Nano GenX 57 121 94 62 52 29 42 20 3

you see in the above figure how sales are dropping. You can not sustain in the market for too long if you’re selling this unit per month.

Now, Tata Motors are planning to discontinue nano.

I will discuss the Tata nano case study. what are the reasons for failure?

what method do they use to sustain in the market?

from A to Z I will discuss all things.

Tata nano failure reasons:

1. Bad image:

nano cheap image case study

  • Tata nano projects itself as the cheapest car.
  • Nobody wants to drive the cheapest car.
  • Buying a car is related to social status and prestige in society.

The word “cheap” and “lakhtakia” used for promotion and marketing all over India completely disrupt its image😫. even before they realise.

The whole Tata motors team got completely shocked. They themselves destroy their product.

There was a buzz in the international media. That in case if it gets successful than 2nd hand market will come to an end.

But nothing happens and unfortunately, tata nano gets competition from 2nd hand cars🚗.

Ratan Tata says:

“It (Nano) 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.”

2. Safety:

  • After this bad image of cheap car.
  • Tata got another stroke.
  • So, many nano catches fires.
  • This creates a complete buzz in media.
  • despite the low price, everyone hesitates to buy because of the fire.

every channel covering its news and spoke evil about nano. But they are right.

I will tell you the story of a customer named Sathish.

After purchasing the car and travelling around 15 km he asked the driver a super shocking question. Have you smell something?

but driver says, new car have such smell. but it fade away with time.

A biker passing by drew their attention towards the rear part of the car. They both got out of the car. And saw smoke first.

and them Broom! it catches fire. and within 15 min whole car get destroyed. Nano burn down the dream of that common man along with it.

This is the worst feeling they get. 1.5 lakh rupees also brunt with car. and they didn’t get a single penny in return.

Now, despite the low price, everyone hesitates to buy. because safety is the main concern everyone is looking for cars.

3. competition:

maruti 800
nano faces competition from 800

After the announcement of nano. The 2nd hand market of card faces a drop in price by 15 to 20%.

new cars like alto 800, Maruti 800, indica and etc so many lower price cars also have to reduce the price.

people call it a nano effect.

nano effect case study

  • But at the time of release things got the complete opposite.
  • They face tough competition from the 2nd hand market.
  • people get high-end 2nd hand car at the same price.
  • 2nd hand car provides more facility at the same price.
  • This affects its sales growth.
  • and burning nano image makes people reluctant to buy.

“5-year-old versions of Ford Ikon, Maruti Esteem, Opel Corsa and Fiat Sienna have priced around 1 lakh, lower than Nano price”.

Used car dealer’s logic is simple: When you are getting a high-end sedan for the same price why would you go for Nano? I agree. I would not. But, this is more like who affects whom and who gets affected the most.

4. expectation vs reality:

exectation vs reality nano failure

  • Tata motor initially stated that a 4-member family can easily accommodate it. But the bitter truth is its very uncomfortable for an Indian family.
  • Up to 3 adult member it is ok only.
  • because most of the tier 2 cities road is full of pits and bump.
  • The idea of replacing a 2-wheeler with a car for a mid-income family was not researched well.
  • Nano consumes 3 times as much fuel as a 2-wheeler.
  • It requires space for parking, unlike 2-wheelers that can be squeezed in anywhere.

5. Low price means low quality:

low quality nano case study

In India, there is a very popular phrase in society. “Low price means low quality”.

  • Engine of some bikes are better than nano engine
  • Faces difficulty in case of overloading.
  • The nano cannot be driven on speed more than 70 mph.
  • Small tyres of nano make it difficult to drive it on rough Indian road.

What did Tato motors do to save their dream car nano?

They tried to change the branding of the car from Cheap car to smart car, well I will say its great move.

But it didn’t work out. Because it was too late and as I mentioned earlier that there are so many reasons for failure not only cheap image.

People also ask:

Q. TATA nano released date?

ANS. TATA NANO was released in 2008 in the market.

Q.Was Tata Nano a success?

Ans. NO, It was a big failure, I have already mentioned the all possible reasons for failure.

Q. Has Tata Nano production stopped?

Ans. Tata has stopped the nano production, and from April 2020 it could be discontinued forever.


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