Über Desi

Keeping it real, desi ishtyle

Nano mania

TAGS: None

India may not have made a mark yet in auto Industry like Germany in engineering superiority, or Japan in durability and innovation.  But we do have a new feather in the cap – the world’s cheapest car – that comes with a distinct set of advantages and disadvantages. Tata motors have claimed their fulfillment of a promise to India and to offer a safer alternative (compared to 2-wheelers) when it comes to mode of transport in India and possibly other developing countries where Nano is set for launch in the next few years.

TIME.COM

Jyothi Thottam on TIME.COM writes -

In New Delhi in the early 1970s, my family traveled by scooter in the classic, death-defying Indian fashion. My father would drive, with me, a toddler, standing in front gripping the handlebars and my mother seated pillion, my infant sister in her arms. My father was a civil engineer and my mother a nurse, and in India at that time, cars for a young family were far out of reach.

More than 30 years later, I recently listened to Ratan Tata, chairman of one of India’s largest companies, describe a family just like mine as the inspiration for the Nano, the ultra-cheap “people’s car” that Tata Motors officially launches today. “What sparked it off was riding in a car and looking at them and saying, ’surely there’s a safer way that these people can be transported,’” Tata recalls.

Driven by an adept leadership that understood the user requirements and the chasm in the automotive industry between the 2 wheeler and the 4 wheeler market in India – the idea of Nano looked feasible to Tata Motors that now owns Jaguar and Land Rover brands.

The Nano project has been touted as a management success as much as it has been lauded for its technical innovation and supply management.

97% of the materials are locally manufactured. The mileage is nearly 54 miles/gallon and the engine is in the rear of the car though the vehicle is still front wheel drive. More facts here…

Nano’s launch was not without its share of controversies and the possibility of the small car adding to the problem of clogged up metros and cities in India which are under severe logistical problems during rush hours where the average traffic speed is 10-20 miles per hr, and more 4 wheelers on the road would possibly add to the chaos.

Then there were political problems involved with the Nano car plant first being set up in Singur, West Bengal but ran into problems with the land acquisition process with the farmers who were backed by Mamta Banerjee and protests took a violent turn. The Nano manufacturing plant then shifted to Sanand, Gujarat.

While, the profit margin on the car is low, and the market scenario is not really the best time to launch a new product, Tata Motors seem optimistic of the fact that the low priced car would fit a common man’s needs and give him the luxury of a 4-wheeler in countries in Asia and possibly South America in a few years.

TIME.COM also has a gallery dedicated to Nano here… (Tip -Santosh)

While India celebrates its mark on the auto industry in a unique way – debate is still on about pollution, and traffic congestion problems that continue to dog the ‘people’s car’.

But the fact cannot be denied that, the world has taken notice of India’s unique needs and solutions that come from within the country, that can also help other people across the world.

TAGS: None

  • Kancheong - The reports do indicate the low profit margin for Tata motors and dealers - and there have been some apt management practices - (link)

    One of the reasons Tata has been able to price the Nano so aggressively is because they signed contracts for five to seven years with suppliers." Blokland says that this is an "extraordinarily" long time for these types of parts supply deals.

    And I've read elsewhere about 'kits' to assemble the cars being sold that would make the dealers double up as reliable mechanics for auto parts, maybe the prices will go up at a later stage and maybe the impact will be felt on city roads in the country, for now- Tata is content with getting the vehicle released at the targeted price and the car's acceptability will have to be judged in a few months to an year. I personally think the car would benefit America and possibly European countries more, just because of sheer mileage capacity, and with appropriate innovation some kind of hybrid engine should do wonders without jumping up the price to more than 250-350% ($6000 or $7000)..

  • Kancheong Spider

    Sidhu!!! I do agree with you that the nano is historic in terms of cost & afforability.I am still sceptical about it maintianing the price tag for long. As far as supplier is concerend it is a no profit product. But for tata I think its more about gaining visibility in the auto industry or to crudely put a marketing gimmick. I dont know how much it will benefit the common man .

blog comments powered by Disqus

© 2009 Über Desi. All Rights Reserved.

This blog is powered by Wordpress and Magatheme by Bryan Helmig.