Wednesday, December 15, 2010

India's Car Market Booming yet Customers Show Little Love for Tata Nano


Sometimes being cheap and cheerful just isn�t enough. Production delays, land debates and questions over occupant safety are killing the Tata Nano faster than an unexplained engine fire. India�s people car is struggling in spite of the nation�s booming car market and a low asking price of just US$2,900, half of what its nearest rival costs.

With economic growth at a staggering 9% per annum and a 22% year-to-date increase in car sales, Tata must have felt it was onto a sure thing. Things started out good, with 200,000 advanced orders for the sub-subcompact before its 2009 launch.

However, sales have been flagging these past four months with the Indian carmaker selling just 509 Nano�s in November, down from 9,000 in July.

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