Nikita Arora's Blog

When Tata Motors launched the  “One-Lakh car”,the Tata Nano in March 2009,the common man of India was very happy ! Because now he could afford the luxury of a car for just a meagre $2500,and that too , a stylish car !

The brainchild of Ratan Tata,chairman of Tata Motors,the idea of Nano was conceived when he saw a family of four people commuting on a two-wheeler in heavy rain.In his own words,Ratan Tata said,”I observed families riding on two-wheelers ;the father riding the scooter,his young kid standing in front of him,his wife seated behind him holding a little baby.It led me to wonder for such a car which is safe and affordable to any middle class family.

And,Nano definitely turned out to be the best solution to the quest of affordable transportation,not only because its the cheapest,but also because of numerous other features that make it “cheap and the BEST’.

The following is a SWOT analysis on TATA Nano,which would help us decide what makes Nano the best deal ?

STRENGTHS :

• First Innovation – sets a benchmark
• World’s cheapest car ($2500)
• Eco-friendly;greenhouse effect
• High fuel efficiency and safe mobility
• Good brand image
• Volumetric gear system which magnifies torque
• Tested successfully on crumple zones

WEAKNESSES :

• Manual Steering; no airbag                                                                       
• Less boot space (624 cc 2-cylinder engine)
• Bodywork of Sheet metal and plastic
• Poor traction control
• Poor engine cooling leading to overheating (http://www.bloomberg.com/news/2010-08-27/tata-nano-catches-fire-in-new-delhi-in-third-case-for-world-s-cheapest-car.html)
• Lack of modern facilities like AC in the standard model

OPPORTUNITIES :

• Created a Niche market
• Job opportunities for 10,000 people
• Diesel and Electric Variant
• Auto-financing
• Recession (comes as a great substitute for high priced cars)

THREATS :

• New Competitors (Bajaj,GM,Honda Siel)
• REVA – An electric car
• Traffic congestion,and higher levels of pollution
• Fuel hike,Increase in taxes by the govt.,and the prices of steel
• Indirect competition from the used car market

In the light of above  facts,it can be said that despite Nano poses few problems due to its physical design and features,but it’s substantially counteracted by its extremely low price and the huge demand for it.Also,in my opinion,the features can be upgraded gradually, based on an individual’s requirements.

But for now,its definitely good to go !