The nano was the dream of  Ratan Tata. who is the chairman of Tata Sons. It was the cheapest car ever in the Indian car market. Ratan Tata hopes he will bring car ownership within the reach of millions of India’s poor aspirational families and it could be true because the price of the car was 1lakh only. which was very easy to afford for many Indian families. who were not able to purchase a car before the launching of Tata Nano. but As we know every dream can’t be true, so the failure of the car is the example, so today we will talk about some reasons of failure of the dream of Ratan Tata.


tata nano


In India, if somebody Buying a car is realated or connected with social status and prestige. In the image of others, he is assumed to be successful and settled. There is a huge difference between the Indian market over Western market, where cars are more of a necessity rather than a luxury. If a person buys a car in the US or any other country, no one gives a damn unless it’s a Ferrari or Lamborghini.

Indian market is different as compared to the western market, so the different marketing strategy was required for selling Nano, which was arguably world’s cheapest car. But the word ‘cheap’ in its marketing campaigns spoiled everything. It had to be yet hidden in their promotional messages.

tata nano


  • Damage away due to the ‘cheap’ image:

This is the main reason for the failure of the car because the word ‘cheap’ hugely affect the image of tata nano. In fact, Ratan Tata admitted the same in an interview to a news channel, where he said, Nano became termed as the cheapest car by the public and, I am sorry to say, by ourselves, not by me, but the company when it was marketing it. I think that is unfortunate.

  • Looking at the ‘looks’ factor:

Look also became the reason for the failure of nano. The average Indian population  is more concerned about looks. In a country where even a fat,  bald man advertises for a tall, thin, fair bride – would a Tata Nano not appear as a blown up ‘match-box’ or what many people called a ‘covered auto rickshaw’? The design of the Tata Nano did not go down too well with the target Indian consumer, who concentrate more on how something ‘looks’.

  • Negative publicity & failed PR management:

Another major factor which was faced by the car was the negative publicity which appeared to conceal it. Yes, a few car caught fire – but, all the Tata Nanos did not catch fire? The PR cell at Tata could not do enough to contain the collateral damage done by the people for negative publicity, which was one of the reasons car did not take off.

  • Expectation versus reality

The Indian people had expected a wonderful car which would be affordable to their pockets and give their image in a society because in India purchasing a car is related to your success. However, the requirements of the Indian middle-class was not met by Tata Nano: an average family of four members had difficulty fitting in the car; there was no boot-space, the car was not meant for the rough Indian roads.

  • Increasing competition in car market:

The small car industry in India has seen a sudden boost. According to an Indian Brand Equity Foundation report, the small car segment in India is expected to grow to 2.66 million by 2020. Datsun with its Redi-Go, Hyundai Eon, Renault A-Entry is some of the smaller cars that are all set to take the Indian market by storm, which definitely is another blow to Tata Nano. In India, it is a known fact that buyers always want to get a better deal at the same price or even at a lower price than the Tata Nano.

Leave a Reply

Your email address will not be published. Required fields are marked *