Cyrus Mistry Tears Into Ratan Tata＊s Pet Project 每 Tata Nano

The Nano story goes something like this. Ratan Tata saw Indian families travelling on motorcycles and was worried about their safety. He was so moved by this, that he envisioned an affordable car that could become a safe mode of transport for millions of Indians. These millions of Indians were also to become a market for his car. Nothing like an inspiration to a healthy bank balance.

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The car has been riddled with problems ever since it was unveiled at the Auto Expo in 2008. The car＊s sub-Rs 1 lakh was Ratan Tata＊s promise to the masses, that the company was able to meet 每 on a technicality.

The base model＊s ex-showroom price was Rs 1 lakh! Then there was the Singur land deal. The entire factory that was to assemble the Nano had to be shifted to Sanand in Gujarat. That the car has always had a stigma of being ＆cheap＊ attached to it, hasn＊t been of any help either. Who paid for all this? Tata Motors did.

Cyrus Mistry in his scathing letter to the company made a special mention of the project.

He says, Tata Motors has lost Rs 1,000 crores on the car and that it will never turn a profit. Any turnaround strategy for the company involves shutting the project down.

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He says Tata Motors keeps making it for ＆emotional reasons＊. He also discloses that discontinuing the car means the supply of its components to an electric vehicle manufacturer will also have to be stopped. Incidentally, Ratan Tata has a stake in the latter.