Ratan Tata Reveals The Real Reason Behind Making The Nano And Why He Is Still Proud Of It

Ratan Tata, the Chairman Emeritus of Tata Sons, is widely celebrated as an industrialist. Yet another aspect of him that regularly garners headlines is the philanthropic nature of the man. In a recent interview with the Humans of Bombay, Ratan Tata points out how it was that very nature of his that propelled him to come up with a car like Tata Nano.

“We realised that while our workers were thriving, the surrounding villages were still suffering. It became our goal to uplift their quality of life as well.” These were the words of Ratan Tata in a recent post by Humans of Bombay which formed the basis of his decision to come up with a car like Tata Nano.

As he recalls, “I remember seeing a family of 4 on a motorbike in the heavy Bombay rain — I knew I wanted to do more for these families who were risking their lives for lack of an alternative.” The alternative mentioned here is the Tata Nano, which soon after came as the world’s cheapest car on retail at a starting price of only Rs 1 lakh ($1350).

Ratan Tata (Representative Image: Reuters)

The unique model by Tata Motors became a global marquee for auto makers to compete with and became one of major reasons for the recognition of the brand’s prowess. As is understandable though, it wasn’t easy for the company to come up with a car at that price.

“By the time we launched the Nano, our costs were higher,” Ratan Tata recalls. The market soon revealed that the company did not make any money on the car for the first couple of years. Citing this, Tata Motors had even put a cap on the number of units to be made, to a total of one lakh such cars in a year. In fact the company even continued with the production for the following years despite falling sales of the car.??

“But I had made a promise, and we delivered on that promise” Tata rightly affirms. Needless to say, the Nano came as a boon to a large section of Indian car buyers. With a budget that was never thought of before, the common man had access to four-wheelers that was just a dream before the Nano.

Ratan Tata knows that. And having delivered on his promise while doing a much needed service for the community, he is proud of the decision to pursue the Tata Nano. “Looking back, I’m still proud of the car and the decision to go ahead with it,” he confirms in the interview.

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