Only One Tata Nano Sold In 2019: How The People's Car Is Slowly Fading Away

Tata Motors made waves in the automobile industry globally when it first came out with its Tata Nano in 2009. Many other OEMs watched in disbelief as the company made possible what others only thought of as a dream, a car that costs only Rs 1 lakh. While the excitement was at its peak at the time and the car sold like hot cakes, it does not seem to be the case anymore.

Recent reports show a drastic turn of events for the entry-level offering by the company. Tata Nano now does not find any buyers in the country and is apparently facing a lack of enthusiasm for its production as well. The sentiments around it can be confirmed by the fact that Tata Motors has only been able to sell a single Nano in this entire year. In fact the Tata Nano hasn't been selling well since 2017.

This is also complemented by the company¡¯s reluctance to produce it anymore. As per a recent report by PTI, Tata Motor has not produced a single unit of the Tata Nano this year. The report also mentions that a single unit of the Nano has been sold in the country in 2019.

What went wrong with Tata Nano?

Tata Motors has not yet decided on the future of the Nano. It still maintains that the production of the Nano in the future is a "conscious management of demand, system inventory and planned efficiencies".

That being said, Nano can face even more difficulties in India in the near future. The Tata hatchback does not meet the updated safety regulations for vehicles in the country as of now. In addition, it will also fall short of the upcoming BS-VI emission norms.

These reasons make the question of its continuation more profound. The PTI report mentions that the company officials had earlier hinted at the discontinuation of the Nano in April 2020, as there are no plans by the company to upgrade it as per the new standards.

The emotional hold-up

Tata Motors¡¯ recent regulatory filings show that the company did not produce a single unit of the Nano in September, i.e. the ninth straight month in this year. The only unit that found a buyer in this year was way back in February. Zero production and sales since then.

In comparison, the company sold only 299 units of the car in September last year. The dwindling sales have been going on for quite a few years now. What was started as a ¡°promise¡± by the company only turned out to be a loss-making business model.

Ex-Tata Sons chairman Mistry had earlier claimed that the Tata Nano "consistently lost value, peaking at ?1,000 crore". He went on to term it as one of the "legacy hotspots¡± and that there was never a turnaround strategy for the car and hence "no line of sight to profitability¡±.

That is when Mistry shared the real reason for the production of the Nano in the first place. Started with the ideal of holding a promise, the ex-exec confirmed that the company did not stop the production of the car due to "emotional reasons".

Tata Motors is now focusing on electric cars for its future vehicles iterations. Citing the same, the company recently confirmed that it will be coming up with five electric cars soon. It has also launched its Tigor EV for the general public now.