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Reasons Why Tata Nano Failed To Attract Many Customers

| Published on June 29, 2021

Remember the small and compact, Tata Nanon, that was available in vibrant colors in India, years ago? This hatchback car was released by Tata Motors within a price range of Rs. 1-2 lakhs which made it a promising deal. However, the model discontinued because of various reasons that created a negative impact on its sales.

The Expectations

By late 2012, it was confirmed that Tata Nano’s advertising would increase by 65%. Even though the sale was nearly 70,000, the company believed it would be able to make it to 250,000 sales yearly. Its closest competition, the Maruti 800, gradually saw a decline in sales post its launch.

Why Did Indians Choose Tata Nano?

When Ratan Tata saw that Indians were more inclined towards riding motorbikes than traveling in cars, he realized that the middle-class mentality lay in buying affordable vehicles which would fit within the bracket of Rs. 2 lakhs. Hence, a low-cost vehicle, the Tata Nano, came by which would serve the majority of the market with all of its features, and the Tata trust.

Reasons Why It Failed

Despite fitting the budget of the average Indian, Tata Nano saw a decline in sales every month due to the following reasons,

  1. Low marketing left users unaware of a budget-friendly option
  2. By marketing itself as the least expensive vehicle, a fragment of the society did not want to ride something cheap
  3. The engine of the car would heat up and exploded in a few cases hurting individuals
  4. For highways and sloping territories, the Tata Nano was an awful choice
  5. The size of the car was small making it uncomfortable for people to sit inside

However, in 2013, Tata Nano tried to come back into the market with a rebranded picture addressing consumers to buy a vehicle that provided everything at a big discount. However, the hype did not continue for long making it leave the market in no time.

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