Tuesday, December 7, 2010

Nano Wasting Money

Nano has started an advertising campaign, focusing on how families can be fitted and focussing on the price angle of less than one lakh. However it is of my opinion that Nano is wasting their time and money. The reason why Nano has unleased this campaign is because during the Diwali holidays the auto-industry sales incereased by 38% compared to last year, however Nano's sale barley rose about 2% compared to last year. There are a few reasons for this:
-- For one the car does not cost a lakh as projected. With the addition of taxes the car cost one and a half lakhs. 
-- Saftey measures. There have been a varitey of cases where the car has caught in flames. Though Nano claims that there is nothing wrong in the saftey measures of the car, it has offered Nano owners an upgrade in the saftey package. 
-- Avalability. Nano has depended on Nano mirco-sales. 

Nano's claim on the saftey measures does not offer any legitamacy simply beacuse one end it is saying that the car does not have any defect and at the side it is offering saftey packages. The public just does not buy this statment of Nano. 

The dependence on micro-sales is all wrong. What is needed is for the car to have a major precence in car show rooms and shops. However to do such a thing it needs to increase it's production output and for this it needs to have more industrial units. Hence it needs to stop wasting money on advertisment.
People know of Tata Nano, many people want to aquire this wonder car. However these various issues need to be dealt with.