Nano’s poor sales at the centre of Tata tussle; the cheapest car in the world could not achieve desired success since its launch
Tata Nano seems to be at the centre stage of ongoing tussle in Tata Sons, which started right after Cyrus Mistry’s ouster from the post of Chairman of Tata Group. No wonder Tata Nano has been the dream project of Ratan Tata, but the car couldn’t get much success as it was expected. Despite being launched as the cheapest car of the world, Tata Nano’s sales literally slumped very disappointingly.
Even in H1 of FY2016 as well Tata Nano sold only 148 unit compared to 625 units sold in corresponding period in FY2015, marking a decline of 76%. The company has been facing cost overrun and losing money for Nano project, which peaked to around Rs. 1,000 crore. Ousted Chairman of Tata Group Cyrus Mistry wanted to close Nano project, but it didn’t happen.
Right after being ousted Mistry has said, because of emotional reasons the Tata Nano project, the company could not shut down the project. He also said that, another challenge in shutting down Nano project was that Ratan Tata has share in one of the companies which supplies components for Nano. Meanwhile Tata group has defended the decision of continuing Nano project though.
While Tata Nano is at the centre stage of the tussle between Tata tussle, Maruti Suzuki India Chairman RC Bhargava has believes that, Ratan Tata should be given the credit for attempting to offer such an affordable car like Nano. He has said that, intention behind launching the car was good intention and Tata group tried to fulfill that, but Indian market couldn’t accept that.
Also read: 2015 Tata Nano GenX AMT Test Drive Review
Tata Nano has been a car since the beginning of its conceptualization which has drawn awe and criticism both. It was initially decided to be rolled out from Singur plant in West Bengal, which didn’t happen due to land acquisition problem. later the car rolled out from Tata Motors’ Sanand plant in Gujarat.