Tata Nano Doesn't Sell Cheap

Tata Nano, the car intended to be the new Model T of the automotive industry, at least as far as India is concerned, as well as the cheapest vehicle on the planet, now faces a "problem". The cheapest trim level of them all, the one which is missing just about everything but a steering wheel, a body and the wheels themselves, does not sell well.

Only about 20 percent of the orders placed for the Nano account for the cheapest version of the line-up, globamotors.net reported. Over 50 percent of the orders have been placed for the so-called high-end versions, which cost about 40 percent more than the lowest of them all...

Now let's see where the "problem" we mentioned earlier really is. At first glance, it is a very good thing for the manufacturer that the more expensive models are being sold. This obviously translates into more money. On the other hand though, Tata can't stop from blaming itself for not making the Nano a bit more expensive all together.

Why is that, you may ask. Well, next year Nano will have to fight for the Indians' hearts. Toyota will introduce its own low priced vehicle 2010, as well as the Renault – Nissan alliance. Both cars may become more appealing to the Indian consumer, especially if they cost a touch more, but they offer a little extra.

“There is no demand for a bare-bones car,” Mahantesh Sabarad, an analyst at Centrum Broking in Mumbai was quoted as saying by the source. “Based on this experience, it does give other automakers room for pricing their products higher. They don’t have to be drawn down to a pricing war.”