Saturday, February 28, 2009

Effect of Tata Nano on Indian Car industry

Finally, Tata’s ambitious people’s small car “Nano” is going to launch on 23rd March and there are good chances that this car will definitely change our thinking towards cars. Today, in India car are still believed as an object of luxury and a small portion of our population have access to them. However, this small car from Tata can really change our thinking and perception about ownership of cars.

So far, there exist a big price difference between a two wheeler and a car in India. People can easily buy a good two wheeler in India by paying between Rs 25000- 50000 ($ 500- 1000), however, for buying a car they are required to pay at least 2 lakh Rupees ($ 4000). Now, this big price difference can be easily filled by Tata’s small car “Nano” which will cost around Rs 1 Lakh ($2000).Moreover, with the availability of cheap car loans, it will further become easy for people to buy this car.

This car can easily provide a good option to large number of lower middle class of India, who is looking for a car. The other major advantage of this car is that it is 8% smaller than so far available small car Maruti 800 and it has 21% more interior space than it. However, there is one problem with this car that there is no back space for Luggage available in it because engine of Nano is in rare, though some space for Luggage is provided in front. Many experts believe that Nano can easily work as catalyst in Indian car market by giving revolutionary push to the Indian car market which is presently struggling.

Two wheeler markets in India has already seen a big jump in recent times due to strong demand, Now we can easily hope for same show in car market also thanks to Tata’s Nano. After the launch of Nano many experts are also comparing it with Indian Telecom market which saw major jump after the availability of Rs 501 phone plus mobile connection by Reliance.

At present, it is not easy to predict the final results because it will still take more than one month to hit Indian roads and in future, Nano will face some competition from other small and first car by leading two wheeler manufacturer Bajaj. However, at the end, we can say one thing with confidence that this car will have only positive effect on already ailing Indian car market.

Also visit-Main Features of Tata Nano

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