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Effects of Tata’s Nano on Indian Car Market

Finally, Tata’s ambitious peoples small car “Nano” is in front of us and there are many chances that this car will definitely change our thinking about the 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 the 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 ($ 650- 1300), however, for buying a car they are required to pay at least 2 lakh Rupees ($ 5300).

Now, this big price difference can be easily filled by Tata’s small car “Nano” which will cost around Rs 1.25 Lakh in hand to people. Moreover, with the availability of cheap car loans, it will further become easy for many people to buy this car. This car can easily provide a good option to large lower middle class of India. 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.

Two wheeler markets in India has already seen a big jump in India 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 eight to nine months before this car will hit Indian market and this car can also 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 Indian car market.


Also read-Features of Nano (Tata’s One Lakh Rupee Car)

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