$32$

When the $$2,500$ TATA$$s Nano car was introduced at the auto show in Delhi in $2008,$ it caused

headlines around the world. The $50$ miles per gallon car was expected to change the way Indian

people travel. The people$$s car could change the automobile industry not only in India, but in many

other countries as well. The just over $3$ meter long car is considered stylish as well as comfortable. It is available in different colors and different models. The fuel$-$efficient small engine delivers

some $33$ horse powers $($which was later increased$).$ The people$$s car is not only environmental

friendly, but is also meeting India$$s safety requirements.

However, since the introduction of the Nano, costs had risen. Raw materials, which constituted

a substantial part of the cost, had also increased in price. Moreover, the factory was behind

schedule. People around the plant near Kolkata protested about the way government had seized

their land without adequate compensation in order to build the factory. Some $40,000$ protesters

descended on Singur, a city some $25$ miles outside Kolkata, complaining that the state authorities together with the industrialists took some $1,000$ acres from the farmers to build the Nano

factory$\mathrm{.}33$ In $2008$ the company decided to relocate to the business friendly state of Gujarat$\mathrm{.}34$

The relocation was costly for Tata.

The car$$s introduction came at a time TATA Motors$$ s earnings fell in the mid $2008$s$.$ The company$$s stock price was also hurt, partly because of the acquisition of Jaguar and Land Rover from

Ford Motor Company. Still, Ratan Tata CEO, is committed to the low$-$cost car project, although

some compromises had to be made to keep the price low.

Several years after its introduction, it became clear that the Nano did not live up to its expectations. The car is not selling as expected and at times the full factory capacity is not utilized

and the price had to be adjusted upward. Reported Nano fires also hurt the car$$s image. Instead

of announcing the Nano as a revolutionary car, it may have been better to introduce the car on

a small scale with a limited production run in order to get the consumers$$ feedback and make

appropriate changes. Also some people may resist buying what was marketed as a $$cheap$$ car;

they want a $$cheap$$ car that does not have an image of being $$cheap$.$

Tata$$s approach of introducing an inexpensive car for the masses was innovative $$ and

innovation can be risky. The future will tell whether the Nano car will eventually be a success.

$1.$ Would the Nano fit your needs? Would you consider buying the Nano? Why or why not?

$2.$ What do you like about the car?

$3.$ What do you dislike?

$4.$ In what other countries would there be an interest in buying the Nano?

$5.$ Do you think the Nano will be a success in the future? Why or why not?