'Not the car I envisioned’: When Ratan Tata opened up about Nano’s marketing misfire

'Not the car I envisioned’: When Ratan Tata opened up about Nano’s marketing misfire

First unveiled at the 2008 Auto Expo in New Delhi and launched in 2009, the Nano made headlines as the 'lakhtakia' car—a vehicle priced at just Rs 1 lakh ($2,500).

By 2019, Tata Motors had stopped producing the car entirely, marking the quiet end of a project that had once held so much promise.
Business Today Desk
  • Oct 10, 2024,
  • Updated Oct 10, 2024, 11:32 AM IST

Ratan Tata's ambitious Nano project, aimed at delivering a safe and affordable car to India's middle class, was never an easy story. Inspired by the sight of families squeezed onto scooters, Tata wanted a car that would offer a safer, weather-proof alternative. 

“What really motivated me, and sparked a desire to produce such a vehicle, was constantly seeing Indian families on scooters, maybe the child sandwiched between the mother and father, riding often on slippery roads,” Tata shared on Instagram in 2022, years after the Nano’s rise and fall.

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First unveiled at the 2008 Auto Expo in New Delhi and launched in 2009, the Nano made headlines as the 'lakhtakia' car—a vehicle priced at just Rs 1 lakh ($2,500). The concept was bold, and initial bookings surged, but controversies soon followed. Among the most significant was the conflict that erupted over the location of its manufacturing plant.

In 2006, West Bengal’s then-Left Front government, led by Chief Minister Buddhadeb Bhattacharjee, offered Tata Motors nearly 1,000 acres in Singur to set up the Nano factory. The move was meant to bring industrial growth to the state. However, local farmers and smaller political groups opposed the takeover of fertile land. Despite initial resistance, the acquisition was completed, and construction of the plant began.

In 2007, Mamata Banerjee, then an opposition leader, launched a fierce movement against the land acquisition, challenging the state’s decision. Her campaign intensified as Trinamool Congress workers clashed with the police in Singur. Banerjee's 26-day hunger strike drew national attention, gaining support from environmental activists and amplifying her political influence. Attempts at reconciliation, including efforts by Governor Gopalkrishna Gandhi, failed to resolve the impasse.

With protests escalating and tensions high, Tata Motors decided to abandon the Singur project. On October 3, 2008, Ratan Tata announced that the Nano production would move to Sanand, Gujarat, where then-Chief Minister Narendra Modi welcomed the project with open arms.

Yet, the hurdles for the Nano did not end with the relocation. Mechanical issues, reports of cars catching fire, and safety concerns marred its reputation. More damaging, however, was the perception that the Nano was a “poor man’s car”—a label that proved difficult to shake. In a 2013 interview, Tata reflected on this branding issue, calling it a “stigma” that haunted the car’s image. “It became termed as the cheapest car by the public and, I am sorry to say, by ourselves, not by me, but the company when it was marketing. I think it was unfortunate,” he admitted. He believed the car should have been marketed as an affordable, all-weather vehicle for two-wheeler owners, rather than emphasizing its low price.

Despite these efforts, the Nano’s market performance continued to decline. By 2019, Tata Motors had stopped producing the car entirely, marking the quiet end of a project that had once held so much promise. While the Nano ultimately failed to achieve its ambitious goals, Ratan Tata’s vision for the car reflected his desire to make mobility safer and more accessible for millions of Indians.

Mamata Banerjee, now Chief Minister of West Bengal, paid tribute to Ratan Tata upon his passing. Reflecting on his role as a leader and philanthropist, she wrote on X, “Saddened by the demise of Ratan Tata, Chairman Emeritus of Tata Sons. The former Chairman of Tata Group had been a foremost leader of Indian industries and a public-spirited philanthropist. His demise will be an irreparable loss for Indian business world and society.”

Tata’s journey with the Nano is a story of vision and setbacks, of hopes that collided with political realities, and of a dream that sought to transform everyday life for Indian families—one small car at a time.

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