Nano

[NANO]

The Nano is a compact city car manufactured and marketed by Indian automaker Tata Motors over a single generation, primarily in India, as an inexpensive rear-engined hatchback intended to appeal to current riders of motorcycles and scooters — with a launch price of one lakh rupees or US$2500 in the year 2008.Numerous factors led to the decline of sales volume, including delays during the factory relocation from Singur to Sanand, early instances of the Nano catching fire, the perception of the car being unsafe and lacking quality due to cost cutting. Tata Motors projected production of 250,000 annually at launch, actually achieving sales in of 7591 for model year 2016-17. The project lost money for Tata, confirmed by former Tata Sons chairman Cyrus Mistry and confirmed by current Tata Motors management.In 2017, Tata Motors said manufacture would continue due to the Tata's emotional commitment to the project, despite poor market demand.In 2018, Cyrus Mistry, Chair of the Tata Group, called the Tata Nano a failed project, with production ending in May 2018.After successfully launching the low cost Tata Ace truck in 2005, Tata Motors began development of an affordable car that would appeal to the many Indians who ride motorcycles.The purchase price of this no frills auto was brought down by dispensing with most nonessential features, reducing the amount of steel used in its construction, and relying on low cost Indian labour. The nonessential features include, removal of the passenger's side wing mirror, having one wiper blade, having only three lug nuts per wheel, removal of the fuel filler cap from the fuel tank and not having air conditioning. The introduction of the Nano received much media attention due to its low price of 1 lakh rupees (Rs. 100,000).Expectations and effects Expectations created for the car during the run up to its production may have been out of proportion with its realised success. A 2008 study, by Indian rating agency CRISIL, thought the Nano would expand the nation's car market by 65%,but, as of late 2012, news reports have detailed the underwhelming response of the Indian consumer to the offering; sales in the first two fiscal years after the car's unveiling remained steady at about 70,000 units although Tata appears intent on maintaining a capacity to produce the car in much larger quantities, some 250,000 per year, should the need arise.It was anticipated that its 2009 debut would greatly affect the used car market, and prices did drop 25–30% prior to the launch.Sales of the Nano's nearest competitor, the Maruti 800, fell by 20% immediately following the unveiling of the Nano.It is unknown if the Nano has had a lasting effect on the prices of and demand for close substitutes. In July 2012, Tata's Group chairman Ratan Tata, who retired in January 2014, said that the car had immense potential in the developing world while admitting that early opportunities were wasted due to initial problems.Due to the sales drops, only a single unit was produced in June 2018.