Article link: http://www.theguardian.com/global-development/2014/jan/31/tata-nano-safety-crash-test-results

Picture link: http://en.wikipedia.org/wiki/Tata_Nano#mediaviewer/File:Tata_Nano_im_Verkehrszentrum_des_Deutschen_Museums.JPG

The article mentions that the Tata Nano was launched in 2009 with a price of $2000 in India, and Tata expected to expand this product to European and North American countries. However, for the Ncap test, “Tata Nano received a zero-star adult protection rating and failed to meet even the most basic UN safety requirements”. In my point of view, it would almost be impossible for the Nano to achieve a qualified safety requirement.

The Tata Nano is known as the world’s cheapest car. It is targeting the group of consumers in India whom do not have the ability to afford a normal automobile. In order to meet this customer segment, the price for the model has to be lower than the existing cheapest car on the market. Therefore, the main design and materials used for the model is to lower the manufacturing the cost as much as possible. Hence, Nano’s low selling price is based on the sacrifice of both comfort and safety.

Tata Nano is able to be sold in India due to a low safety standard, however, European and North American countries often have a higher safety requirement for automobiles. Thereby, Nano has to achieve a higher rating in the Ncap test in order to expand to these markets. But to do so, the manufacturing cost will has to be increased and the model may even need to be redesigned. In my opinion, Tata would not be willing to do so as it will increase the selling price and the model may no longer be competitive against other models. It would be impossible for the Nano to meet the requirement while still maintaining the lowest price.