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It was the Rs 1 lakh car that was supposed to set the domestic auto markets on fire. But it was probably damned by being called that: a Rs 1 lakh

car that aroused concern that maybe something was sacrificed in producing a car on the cheap. No one likes being accused of owning a cheap

car.

On Monday, aided by group company Titan Industries plan to celebrate 5,000 years of Indian jewellery, the Nano one Nano was suddenly

transformed into the worlds most expensive car with a possible price tag of $4.5 million.

The reason for the price tag: the car is covered with 22-carat gold, silver and precious stones. At one stroke, bedecked with 80kg of 22 carat

gold, 15kg of silver, and 10,000 semi-precious gems, a Rs 1 lakh runabout has been turned from cheap bauble to expensivebillionaire bling.

The makeover of the Nano is, however, the sideshow, for the real purpose of the shine-and-polish is to take it on a tour of Titans jewellery

showrooms, presumably with Z category security in tow.

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Why a gold-plated Nano will do little for Tatas failing car

by R Jagannathan Sep 20, 2011

#dream car#Durgapur#How This Works#Ratan Tata#Tata Nano
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At one stroke, bedecked with 80kg of 22 carat gold, 15kg of silver,

and 10,000 semi-precious gems, a Rs 1 lakh runabout has been

turned from cheap bauble to expensive billionaire bling. PTI

It does not address the Nanos own problems of which there are aplenty. With sales of an abysmal 1,202 cars in August, down 85 percent from

the previous month, Ratan Tatas dream car is facing a nightmare on the sales front. The August figure is perilously close to the 509 cars Tata sold

in November 2010, setting off alarms all over. April this year was the best ever month for the Nano when 10,000 cars were sold but that was

a flash in the pan.

So what went wrong with the Nano? And can its problems be fixed?

The first problem, of course, is its positioning. A Rs 1 lakh car that wasnt a Rs 1 lakh car meant that the product prima facie didnt live up to its

name. In hindsight, it is quite clear that Ratan Tata was a victim of his own utterances he made the promise of a Rs 1 lakh car in an unguarded

moment, but costs couldnt be held that low by the time the car came to market. But then, successful marketers know that the gap between

promise and delivery can make all the difference to its success. Tata flunked the test.

The second problem related to fears about performance which were not helped by early reports of unexplained fires in some of the Nanos. The

consumer who buys a car because he can afford only Rs 1 lakh will be more careful about his money than someone who buys a Maybach for his

daughters birthday. Needless to say, the Nano did not get great reports in its initial months and this cost Tata.

The third problem was how Tata dealt with low sales. Instead of dealing with the cars image and performance issues, the company compoundedthe problem by making it a down-payment and EMI-driven selling strategy. For just Rs 15,000 and sub-Rs 3,000 monthly installments, you could

buy a Nano. EMI, unfortunately, is a game every carmaker can play. You can buy even a Merc for an EMI of less than Rs 30,000 today. Any

small car depending on the loan tenure can be brought to the Nanos monthly level. By choosing easy payments as its new USP, Tata neatly

landed in somebody elses turf. It didnt help.

The fourth problem lay in its conception. Ratan Tata saw it as a car that people previously using two-wheelers would upgrade to. But that is not

the kind of people who are buying the Nano at least not in sufficient numbers. It seems many of its buyers are people seeking a second car for

fun and local, short-distance use. And there arent enough of them to soak up Nanos huge assembly line at Sanand.

So is it a failure?

Not by a long chalk. As Matthew Eyring, president of Innosight, a global consulting firm, notes, the real problem with the car was its initial hype.

A cheap car thats not really cheap. A safe car whose safety has been questioned. A poor peoples car that poor people arent buying. Thatsounds like a failure, certainly. But really its not. Its par for the course for almost every breakthrough innovation.

According to Eyring, Tata would have been better off launching and testing the car quietly before unleashing it before the world with great fanfare.

It might not have been easy, but had Tata piloted the Nano quietly, on a small scale, perhaps through a limited production run in a small city like

Durgapur in West Bengal or Ranchi in Jharkand, its engineering, pricing, financing, and marketing might have been adjusted far from the limelight to

suit the needs of an optimal target customer. Thenthe Nano might have made its debut to the wider world with less hype and greater effect. It

might not have been a Rs 1 lakh car or even an alternative to motorscooters. But when it first appeared in the mainstream, it would have been right

product for the right price in the right market.

But, its not too late to change course. Gold-plating the Nano and studding it with gems may get it noticed, but ultimately its whats under the hood

that counts. The shine is an optional extra.
http://blogs.hbr.org/cs/2011/01/learning_from_tatas_nano_mista.htmlhttp://www.firstpost.com/topic/person/ratan-tata-profile-23831.htmlhttp://www.autocarindia.com/news/nano-sales-cross-10000-markhttp://www.firstpost.com/topic/person/ratan-tata-profile-23831.htmlhttp://www.business-standard.com/india/news/big-sales-problemtatas-small-car/445864/http://s2.firstpost.in/wp-content/uploads/2011/09/nanogold.jpg


3/14



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meDilbert

If NANO has failed then management is responsible not engineering. It failed to make even its employees realise that NANO is

Good car not cheap. When I went to book they were least interested to even share details. Customers were dejected by

employees of showrooms and chose not to buy it including me.

3

Sudhir

Inspite of everything what is good and bad I am very much proud about TATA because he is progressing worldwide in auto

industry, and he had launched a innovative product like NANO,perhaps it may fail initially but finally it will succeed over period of

time, because I had met one of the user and he was saying he had travelled about 330 kms in the single journey and was very

happy with the performance, average and pickup. I had seen that car it is enough specious.

There are many places in the world where this product can be sold, there is an entire world open for TATA

I wish Tata a very good luck for success

3

Indian

TataMotor seems like an failure in passenger car segment. Other than Indica and Indigo not a single big sales no model.

Now what is surprising they were leaders in SUV,MUV segment just 15-20 yrs back with models like Sumo, Estate, Siera,Safari. Mahindra came up with Scorpio and took away almost that entire segment n people at TataMotor never ever bothered to

come up with good models for this segment n gave away all of it to Mahindra on platter. Looks like some sr management are

traitors for this debacle.

With Indica n Indigo as well hardly any new innovative models, when competition in this segment has changed so much with s

many new players.

Today other than JLR company hardly has any great hopes, so what seem like an success story is fast turning into an flop

story unless company takes on competition by horns.

Indian Woes for Nano started with Singur here company lost close to 1.5 yrs time, this fuss at singur seems like competition blow,

then Pricing is an issue also any new Tata models are bound for functioning issues, so overall every thing has gone wrong with

this over ambitious project.

Only way for tatas to make nano successful is by bringing down prices, good service network, else looking at its dwindling sale

nos its going to be history soon

Guest

I think the problem was that they never did proper market research. If they wanted two-wheeler owners to see the car as an

upgrade, they ignored the availability of second-hand cars like the Alto or Santro. They also failed to realise that for a motorcycl

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5/14



Modi live in Patna: Hunkar rally will counter Congress,

Nitish

Even before Modi i was made up my

mind to let give the chance for BJP as congress must

Dear Congress, if maut ka saudagar i s okay, so is

Modis shahzade

Congress called Modi Not Only Maut-ka-saudagar

but, Hitler, fascist, lahu purush, monkey, nali ka kida,

Modis poll pitch to Muslims in Patna: For BJP, it s

India Fi rst

Historic rally, point to point statements. No

boasting. In real sense Narendra Modi has succeeded in

Graft begins at home, please come clean, Congress

tells Shivraj

Congress talking about graft .... what a joke ? Please

come clean first ... then talk about others ... lets start

owner, a m eage rop rom mp o mp s a o e a can e r ge . ven a m e-c ass consumer uys e car,

is destined to be parked away for the weekend, when the whole family can use it - sadly, usual Indian families can't fit inside a

single Nano.

On the other hand, if they had intended it to be a second car, they should have focused on safety, looks, finish and practicality.

Instead, they muddled up the intended positioning and brought forth an ugly ill-fitted frog that no one wants to be seen driving.

4

Dwaipayanbasu

The Nano can be still successful if the Tata's think of re-launching it in a better package. Most middle class people today thinkof a vehicle which is not only value for money but also can give a little more comfort, especially those who are looking at a

second car (this segment is a lot more). Tata's can launch Nano with an Automatic edition (this will be an instant hit since it will

catch the imagination of large section of our working women) and an electric version (since the petrol prices are only moving

northwards without any hope of stopping. I hope, Tata's are listening or else Nano can die a silent death like so many of our

erstwhile "standard heralds" and "premier 118s".

2

Carumartins

Tata Nano is not really a failure at all, it does take time for a breakthrough in technology to be accepted by the markets, people's

minds have been conditioned by the media (like yours, with a misleading title). I have seen the Nano win hearts of many people

including mine... just how do you explain all the other car manufacturers running to make small cars to compete with Nano ?? Idont have a Nano yet, but I will soon get one once the diesel one comes out.

And yes, its not my first car... i already have 2 other cars which cost more then 5 Laks.

1

Guest

very rightly said...Nano had all the hype... it became like India England Test Series... there was a hugh hype on Sachin's 100th

ton... & ended up loosing series 4-0...

1

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8/14



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Live: Make me, not Rahul, India's chowkidaar, demands Modi

Tracking live updates from Jhansi, Bundelkhand, where Modi will address a rally.

NSEL top brass faces legal heat, asset seizures by ED in 180 days

NSEL brass to face full might of Indian criminal law, dozens of charges ?to be filed; asset seizures by ED in 180 days.
http://www.firstpost.com/investing/nsel-top-brass-faces-legal-heat-asset-seizures-by-ed-in-180-days-1194299.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/investing/nsel-top-brass-faces-legal-heat-asset-seizures-by-ed-in-180-days-1194299.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/politics/live-make-me-not-shahzada-rahul-indias-chowkidaar-says-modi-1193947.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/politics/live-make-me-not-shahzada-rahul-indias-chowkidaar-says-modi-1193947.html?utm_source=editorpick&utm_medium=story


9/14



Telangana leaves Andhra politics in a flux, parties clueless

With the TRS and the YSRC seeking to consolidate their positions on their own in Telangana and Seemandhra respectively, its

disadvantage Congress.

The Fifth Estate review: Boring film despite a great cas t

Bill Condons The Fifth Estate offers the viewer a flimsy and one-sided view of the phenomenon that is Assange.

Every song that I sang I never relented: Manna Dey

In death, Manna Dey is being remembered as a singing legend. In life he had to fight for almost every song because as he once said he was

in a field of music where there were giants. All things came to me, but somewhat delayed, he said. It was good in a way I had to work

for it. We are richer for it.

For Rahul Gandhi, after maa, its daadi; is Nehru next?

Both in Churu and Alwar, listeners switched off the moment they realized that mother, father, grandmother would yet again be the theme of

his sermon.
http://www.firstpost.com/politics/for-rahul-gandhi-after-maa-its-daadi-is-nehru-next-1190767.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/politics/for-rahul-gandhi-after-maa-its-daadi-is-nehru-next-1190767.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/bollywood/mostly-i-was-chosen-to-sing-songs-others-didnt-sing-manna-dey-1191361.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/bollywood/mostly-i-was-chosen-to-sing-songs-others-didnt-sing-manna-dey-1191361.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/bollywood/the-fifth-estate-review-boring-film-despite-a-great-cast-1193491.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/bollywood/the-fifth-estate-review-boring-film-despite-a-great-cast-1193491.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/politics/telangana-leaves-andhra-politics-in-a-flux-parties-clueless-1194197.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/politics/telangana-leaves-andhra-politics-in-a-flux-parties-clueless-1194197.html?utm_source=editorpick&utm_medium=story


10/14



Delhi rape: Why we continue to fail in this national tragedy

While apprehending a few strangers and punishing them appeal to the angry crows on the streets, the agony and muzzled voices of majority

of girls and women are unheard and un-redressed.

Saina vs Sindhu: Through the eyes of Gopichand

Coaches break down players mentally, physically and technically while those who watch the sport often make their analysis on the basis

of results. And according to Gopichand, Saina and Sindhu are still completely different.

China, India world's most important bilateral friendship: Li

Announcing the signing of the border defence pact, Li said he was sure that the pact would ensure peace, stability and tranquility along the

border.

Delhi BJP's CM aspirant Dr Harsh Vardhan: all you need to know

Dr Harshvardhan has not been a name that appeared routinely in BJPs political discourse over the past few years, or even months, with the

partys Prime Ministerial candidate Narendra Modi eclipsing the entire party. However, the 59-year-old ENT surgeon from Delhi will be

one of the most watched and discussed BJP leaders in the coming days.
http://www.firstpost.com/politics/delhi-bjps-cm-aspirant-dr-harsh-vardhan-all-you-need-to-know-1188925.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/politics/delhi-bjps-cm-aspirant-dr-harsh-vardhan-all-you-need-to-know-1188925.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/world/china-india-worlds-most-important-bilateral-friendship-li-1188609.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/world/china-india-worlds-most-important-bilateral-friendship-li-1188609.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/sports/saina-vs-sindhu-through-the-eyes-of-gopichand-1177839.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/sports/saina-vs-sindhu-through-the-eyes-of-gopichand-1177839.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/india/delhi-rape-why-we-continue-to-fail-in-this-national-tragedy-1191579.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/india/delhi-rape-why-we-continue-to-fail-in-this-national-tragedy-1191579.html?utm_source=editorpick&utm_medium=story


11/14



BJP divides people, spreads communal violence, says Rahul

Congress Vice President Rahul Gandhi on Wednesday struck an emotional chord with his supporters at a rally in Churu, Rajasthan where h

recalled memories of his grandmother Indira Gandhis assassination.

India vs Australia as it happened: Rain washes out game

Live coverage of the 4th ODI between India and Australia in Ranchi.

Dangerous signs: Is Bihar moving back to era of bloody caste wars?

Acquittal of all accused in four Dalit massacre cases by the high court has ignited an old war.

Exclusive: India clueless about producing coaches, says Gopichand

In this interview, he talks about everything ranging from his coaching style, the challenges India faces as they rise in the sport and most

importantly, his quest for the next Gopichand.
http://www.firstpost.com/sports/exclusive-india-clueless-about-producing-coaches-says-gopichand-1175293.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/sports/exclusive-india-clueless-about-producing-coaches-says-gopichand-1175293.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/politics/dangerous-signs-is-bihar-moving-back-to-era-of-bloody-caste-wars-1186105.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/politics/dangerous-signs-is-bihar-moving-back-to-era-of-bloody-caste-wars-1186105.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/sports/india-vs-australia-as-it-happened-rain-washes-out-game-1188967.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/sports/india-vs-australia-as-it-happened-rain-washes-out-game-1188967.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/politics/bjp-divides-people-spreads-communal-violence-says-rahul-1189257.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/politics/bjp-divides-people-spreads-communal-violence-says-rahul-1189257.html?utm_source=editorpick&utm_medium=story


12/14



Can BBM ever get it right? Angry users must wait to use Android, iOS app

While most first reactions point to the BBM re-launch being welcomed favourably, with many users going on to say that the month delay in

the rollout of the BBM has been worth the wait, there are many others who are not yet satisfied with the application.


The PMs statement on the coal blocks allocated to Hindalco may be enough to close the case, but the thing to watch is what happens to th

case against PC Parakh.


The PMs statement on the coal blocks allocated to Hindalco may be enough to close the case, but the thing to watch is what happens to th

case against PC Parakh.

Would Competition Commission have the guts to bust jewellers cartel?

The truth is there is no back-to-back relationship between the ruling market price of the yellow metal and the gold used in making the

jewellery just sold. Like any other manufacturer, jewellers too stock up the raw materialin their case bullionso much so that in a rising

market they always make a profit. Value addition in any case is relatively insignificant.
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13/14



Rajesh Bhatia's story: Why India's airports aren't truly international

India Gandhi International Airports T3 terminal, is known for its swanky interiors and modern architecture, but when it comes to security

personnel training at the airport, the standards are truly of the past.

The contradiction that is Ishant Sharma

You cant count on Ishant Sharma to run through a side, take wickets with the new ball or keep the scoring rate down at the death. But you

can count on him to play.

Why Prince Charming Rahul Gandhi can't win votes for Congress

The accusations of incompetence against Rahul again is solely based on the Congress performance in the government over the past nine

years.

Why Raghuram Rajan has to deliver a kick in UPA's pants

The only institution that can act to stem inflation right now is the RBI. Raghuram Rajan has a unique opportunity to deliver the system a

shock by raising interest rates by a larger-than-expected 0.5-1 percent. Politicians no longer have the credibility to act
http://www.firstpost.com/economy/raise-rates-why-rajan-has-to-deliver-a-solid-kick-in-upas-pants-1179559.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/economy/raise-rates-why-rajan-has-to-deliver-a-solid-kick-in-upas-pants-1179559.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/politics/why-prince-charming-rahul-gandhi-cant-win-votes-for-congresswhy-prince-charming-rahul-gandhi-cant-win-votes-for-congress-1177879.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/politics/why-prince-charming-rahul-gandhi-cant-win-votes-for-congresswhy-prince-charming-rahul-gandhi-cant-win-votes-for-congress-1177879.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/sports/the-contradiction-that-is-ishant-sharma-1180407.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/sports/the-contradiction-that-is-ishant-sharma-1180407.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/living/rajesh-bhatias-story-why-indias-airports-arent-truly-international-1182875.html?utm_source=editorpick&utm_medium=storyhttp://www.firstpost.com/living/rajesh-bhatias-story-why-indias-airports-arent-truly-international-1182875.html?utm_source=editorpick&utm_medium=story


14/14


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Shamed and scarred: Stories of 'legal' abortions in India

Abortion in India is legal in name only. It is most often a painful, shaming experience that often causes permanent medical damage.

Katiyabaaz: Documenting Kanpur's battle for electricity

This documentary about the terrible power situation in the industrial centre of Kanpur unfolds with all the drama and charm of a feature film.

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