8 Reasons: Why Ratan Tata’s ‘Nano’ Is A Failure?

Tata Nano

Call it a City car or a car of the middle class family or the cheapest car, its Tata Motor’s product Tata NANO car launched in 2008 by Ratan Tata. Main reason of launch this car was to provide cheapest car to motorcycle riders family, primarily for safety.

The introduction of the Nano received much media attention due to its low price. It was made in India and for the Indians but still Nano failed. WHY? It has many features to rock in the market but still it failed. WHY? We all get this question always striking our mind. Here are some top most reasons behind failure of Tata NANO.

1# Size:
Size is the biggest reason for the failure of Tata Nano. Size of the car did not satisfy its customer because price of car and size does not complement each other. According to the price value, size of the car was very small compared to earlier entrant due to which it did not satisfied old car users and also to new customers. Even when price of Nano was not very less, it has been promoted as cheapest car n thus many buyers ignored it to buy because it was going against their living standard and thus they have lost from their rich customer base.


#2 Product Positioning:
We all understand that Car has always been a status symbol in the society but when you are talking about having the cheapest car, your value in the society automatically gets down due to the word ‘Cheapest’. Tata have never realized that positioning its car as cheapest would actually resist quality buyers to buy NANO.

#3 Quality, not up to the Mark:
Yes we know that it’s the cheapest car in the country but does that mean to give lowest quality also? What would be the value for money then? There are several quality check where NANO failed miserably like its engine noise, its paint on the engine etc etc. Customers do wanted low priced car but a car which has good features and at a low price but TATA brought low price with low value car and thus it does not satisfy customers to compromise on such quality standards.

#4 Advertisements and TATA:
If you see NANO’s advertisement you will find that TATA is still confused to promote this product to correct segment. Earlier in TV Ads they have shown that a family has bought NANO as their first Car but when you see their recent Ads, they are promoting it as young India drives NANO. Somewhere they are still not clear as to how to pitch this product in the correct segment.


#5 Poor Dealer’s Network:
One of the biggest reasons for the failure of NANO is its poor dealer’s network. Tata Nano was aimed to be sold to low budget families who are mostly available in villages and small town but when it comes to its dealer’s network, their network is mainly available in bigger cities and not in such said places. Because of their un availability in smaller towns and in villages, they could not make results what they have actually planned for.

#6 Low Quality Engine:
According to engineers, the car was unsuccessful since the launch itself as few units caught fire as its common in RWD and even out market accessories may also have caused fire. Even the engine noise is something which actually resists any car buyer to buy this car.


#7 Toy Appearances:
Look of the car is truly replication it’s name i.e. NANO ( very small). It actually looks like a baby toy vehicle because TATA marketing and product development team have somehow missed to understand that Indian buyers are not utilitarian but a kind of segment which actually want to show off their car. TATA did brought this cheap car in the country but they also make it look cheap which has made it to fail.

#8 Competitions:
The worst thing about NANO’s failure is its competition. Ohh no, it does not competed with any other cars even when TATA always try to give comparative statements covering other brand’s cars.

For buyers to today’s generation, they don’t want safety but style and thus buyers got tempted towards buying high budget bikes rather than going for low budget cars. One would be surprised to know that even today, customers are not aware of the actual price NANO is getting sold at.

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