Nano faces no competition yet

Even after 18 months after they announced plans to roll out a rival to Tata Nano, the ambitious ultra low-cost (ULC) car project of Bajaj Auto, Nissan and Mahindra Renault seem to have reached no where. The three companies had come together for jointly developing and launching a budget car with a price tag close to Tata Nano but still are unable to work out a concrete product plan. They also not have much confidence on the expected demand for such a product. Colin Dodge, global executive VP for Nissan, informed that it was turning out to be a “very, very difficult” project for the companies.

“If you look at the segmentation of 2-wheelers to 3-wheelers to low-cost 4-wheelers, our understanding at the moment is that the cheapest 4-wheeler in India is taking customers from the next cheapest 4-wheeler. The original idea was to pull up people from 3-wheelers or 2-wheelers to the ultra low-cost 4-wheeler segment. But actual market is taking car drivers from a very low level to an even lower level. It is a concern,” Dodge said. There is no point doing so and that may be one of the possible reasons to fail in the Ford Endeavour. Chevrolet Cruze and Tata Manza are other cars which are getting launched soon in Indian market.

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