The death of a small car

Abstract

Tata Motors launched the low-cost car, Nano in 2009. The expectations were high. It was supposed to change the rules of the game in automobile industry forever. A series of operational hurdles came in the way spoiling the show. The manufacturing plant had to be relocated, due to the agitation launched by farmers whose land was acquired by the Company. Consequently, operational costs increased. Customers could not get the vehicles on promised dates. Initial technical problems caused a series of fire accidents which turned the tide against the image of the car. The positioning of the car as a ‘cheap vehicle’ proved to be a strategic blunder forcing the Company to call it a day.