The Nano’s death was confirmed by production numbers: Tata Motors Ltd. produced just 1 unit in June, down from 275 in the same month last year.The expiry of Tata Motors Nano, holds lessons for automakers. Its a classic example of frugal engineering and wrong positioning.
Why Frugal Engineering? Nano fell short on safety, ran behind schedule and produced questionable crash test results.
Why Wrong Positioning? Car in Indian market is still a matter of Social exhibit and prestige. However Tata Nano called itself as ‘people’s car’ which anybody/ every can own enforcing, thus wrongly positioned positioned itself as a symbol of social liberty and equality.