The Tata Nano and Why You Can't Always Get What You Want

"My bird IS the word" (mybirdistheword) 04/29/2018 at 11:23 • Filed to: Elio

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So all this talk of the Elio and it’s eminent demise (for entirely unrelated reasons) has made me decide to relate a story that may or may not have come across on this site or jalopnik. This is about an idea for a similar concept: The Tata Nano economy car.

This is an Indian domestic market vehicle designed explicitly to be as low cost as possible to meet the needs of india’s growing economy. When it was first produced, it could be had for as little as $2,000 US dollars, but due to increases it is now available for the equivalent of $3,500 dollars. The vehicle features some interesting qualities such as a 624 cc engine, only 3 lug nuts and a trunk that doesn’t open from the outside to save costs.

Import for the second generation was planned for the U.S and europe, but never happened. This could be for any number of reasons you could think of, but was probably because of the primary reason: It didn’t sell that well in India, and we would be much less interested than them. How poorly did it sell? Well, compared to estimates, the production was prepared for 250,000 cars a year, the best they ever got was 70,000. Now they are only selling about 7,000.

Now, these did have some issues with fires that were resolved. But mostly, like many other failed “economy” products, These have become synonymous with being poor. Not being “thrifty”, being poor. Nobody wants to look like they are poor, even if they are.( And, being india, they have a lot of poor) India also has the benefit of being close to the equator, which means motorcycles are one of the most practical methods of transportation.

Who buys the Tata Nano now then? According to my Indian business proffessor (who brought this to my attention) the Nano is bought exclusively by rich parents who want a disposable car for their kids so they don’t get into trouble. Not the poor.

So, thats a failure then. If you tell people that the product is designed for “lesser people” than that is the impression the people buying it will get about themselves. We know this type of product is healthy and good for people who are struggling, and that most of the time they are good people. We also know products like this can be successful. The beetle was sold for the equivalent of today’s 5,300$. That was a different time, sure. However the same principals apply.

Was it billed as economical? Sure. Was it billed as cheap? No. Ads featuring quality and resale value were just as prominent as ads featuring it’s low price.

So the lesson of the day? Marketing products aimed at low incomes is difficult. When you make a product to adress those needs, it better be top notch and just as useful as a comparable item. Utility and longevity have to be front and center. And, most importantly, it has to be more appealing than a used, nicer car, or a new high end motorcycle. The idea of buying new itself really isn’t that appealing. So despite how much we like 3 wheel cars here, do you really think the Elio would be successful?

farscythe - makin da cawfee! > My bird IS the word 04/29/2018 at 11:31

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eh .... well to be fair.......... when you lable a car as made in india.... no ones gonna buy it... not even indians

thats why fender guitars have a big ass lable saying....... assembled in the us

jimz > My bird IS the word 04/29/2018 at 11:35

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not too different from brands here who failed because they wanted to appeal to the “youth market” and ended up with 40-50 year old buyers who just wanted a cheap, convenient second car.

If only EssExTee could be so grossly incandescent > jimz 04/29/2018 at 11:36

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*cough**cough* Scion *cough*

Amoore100 > farscythe - makin da cawfee! 04/29/2018 at 11:37

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India’s best selling car in 2017: the Maruti Suzuki Alto 800

Assembly: Manesar , India ( Maruti Suzuki )

farscythe - makin da cawfee! > Amoore100 04/29/2018 at 11:38

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welp..... not the first time im completely wrong

ranwhenparked > Amoore100 04/29/2018 at 11:46

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And only about $4,000, so also very cheap, but way more of a “proper” car.

Eric @ opposite-lock.com > jimz 04/29/2018 at 11:56

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This is giving them too much credit. They appealed to retirees on a fixed income due to seating position, easy ingress/egress, and their low prices.

Their buyer ages were skewed due to the retirees and parents using their credit to get their children into them. How many middle aged (45 year old) people did you see driving an xB when they were new?

Amoore100 > ranwhenparked 04/29/2018 at 12:00

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Also from what I perceive Maruti seems to be a bit more of a household name in India when it comes to privately owned cars despite Tata’s fully domestic nature.

LongbowMkII > My bird IS the word 04/29/2018 at 12:26

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In the us 99/100 people would pick a used Corolla over an Elio

victor > Eric @ opposite-lock.com 04/29/2018 at 13:11

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Plenty of them. In fact, only one owner I knew was younger, aka, mid 30s

My bird IS the word > LongbowMkII 04/29/2018 at 15:14

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Exactly.