How Tata Nano hit a big bump in India
By Lijee Philip
MUMBAI:
The Tata Nano was a small car that was expected to deliver big numbers —
the new plant at Sanand in Gujarat was built to produce 2.5 lakh units a
year, eventually ramping up to 5 lakh units. But 15 months after a
high-profile launch, it has encountered trouble at every turn — three
instances of the car going up in flames and a few cases of smoke
emanating from it (the last was in September), confusion about its
positioning, a rather unexpected bunch of affluent initial buyers, poor
ddistribution
reach, and financing bottlenecks. Nano’s sales have dipped from 9,000
units in July to 3,000 in October to just a little over 500 in November.
An ETreporter who visited Sanand on Tuesday met workers at the industrial zone who said production of the Nano has come to a near standstill; the number of workers there has decreased by 80% in the last month. The company declined to answer a specific emailed query on the firm stopping Nano production, Nano production, even though it opened up to detailed interviews on all other aspects of the car.
Many dealers say they have not picked up any fresh stock during the last two months as they were trying to sell existing cars. Dealer inventories at the beginning of November are estimated to be 17,000-20 ,000 units, according to officials at Nano’s dealers and suppliers. The company says that inventory levels are not so high, though it declined to disclose numbers.
An ETreporter who visited Sanand on Tuesday met workers at the industrial zone who said production of the Nano has come to a near standstill; the number of workers there has decreased by 80% in the last month. The company declined to answer a specific emailed query on the firm stopping Nano production, Nano production, even though it opened up to detailed interviews on all other aspects of the car.
Many dealers say they have not picked up any fresh stock during the last two months as they were trying to sell existing cars. Dealer inventories at the beginning of November are estimated to be 17,000-20 ,000 units, according to officials at Nano’s dealers and suppliers. The company says that inventory levels are not so high, though it declined to disclose numbers.
“I
am a little surprised by the Nano’s sales figures,” says the head of a
rival car manufacturer speaking on the condition of anonymity . “The car
was positioned as an alternative to two-wheelers , but that’s not
happening. Those looking to upgrade from two-wheelers are put off by the
negative publicity (over the fires) and safety issues and buyers of the
top-end Nano will rather put in a few thousand more and buy another car
like the Alto,” he adds.
“The Nano was to sell on ‘demand pull’ , but now it’s plagued with poor image and quality issues ,” says a top-ranking executive who has worked with a car company in the past. “The Nano was supposed to attract maximum footfalls to dealerships and have a rub-off effect on its other models. But it hasn’t .”
“The Nano was to sell on ‘demand pull’ , but now it’s plagued with poor image and quality issues ,” says a top-ranking executive who has worked with a car company in the past. “The Nano was supposed to attract maximum footfalls to dealerships and have a rub-off effect on its other models. But it hasn’t .”
Is
the small car hurtling into a big crisis? And what is the company doing
to fix it? It’s easy to attribute the deteriorating sales of the Nano
to the incidents of the fire. (More on that later.) But there is perhaps
also a deeper marketing failure that’s lurking behind the smoke.
Top company officials who spoke to E ..
My comments:
Top company officials who spoke to E ..
My comments:
Old horse/Dr M, who is a totalitarian, megalomaniac, nepotist, arch-liar, swindler, embezzler, supreme actor.... is a selfish, greedy, ugly, self-centred.... person. He has never cared to abide by agreements, manifestoes or treaties when he sees them not to his full advantages and interests.
He only cares to fulfill his political aspirations and ambitions with no concern about the interests of the mass though he so often pays verbal lip service in the name of Malays or Bumiputra. I hope no Malays or Natives are so idiotic to be fooled over again by his sweet and vain words.
He is ambitious to introduce the third car 3.0 at the expense of the public transport and the people in general. He wants to burn oil and gas resources in the territories of Sarawak and Sabah and other oil producing states in Peninsular Malaya.
He will cause fury 90% of the people in the Federation. It is unwise to force people to gather in the mass demonstration to protest when he is only concerned about his ambition without much care about the livelihood of people in general.
Stop thinking and introducing the third car as there are already too many cars on the road and far too many accidents in a year. What is the average deaths in the car accidents per day? Let's count and sue the government for their faults for not improving and upgrading the public transport.
I hope that people will be prepared to demonstrate to protest if this nepotist is going to introduce the third car. It should be nipped in the bud. Don't wait until it has tested to fail like Tata Nano in India.
Dear brethren, be prepared to protest as everyone of us will be affected in one way or another by Dr M irresponsible and selfish actions to introduce the third car 3.0. He is digging his own grave and he might face up to the tribunal for his blunders in many mega projects and investments in the Forex Exchange, especially.
He has to be careful as his ambitions and greed will expedite to his speedy downfall. Most people do not expect him to seat as PM for more than two years. He behaves as if he could stay on forever. He does not see what is more important matter beneficial to people most to deal with now. He is so obsessive to his ambitions and greed for more for himself and his family.
(Yes， I have read the article written by Tay Tian Yan 郑丁贤 Sin Chew Daily。 This piece of news should serve as a good advice to take heed to think thrice or more.)
He has to be careful as his ambitions and greed will expedite to his speedy downfall. Most people do not expect him to seat as PM for more than two years. He behaves as if he could stay on forever. He does not see what is more important matter beneficial to people most to deal with now. He is so obsessive to his ambitions and greed for more for himself and his family.
(Yes， I have read the article written by Tay Tian Yan 郑丁贤 Sin Chew Daily。 This piece of news should serve as a good advice to take heed to think thrice or more.)
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