NANO is here and it is here to stay

The people’s car of 1980s, Maruti 800, revolutionized the auto industry of India. 25 years hence we have another one making a step into the much more global space. Almost half the price of the predecessor of the title, TATA’s People’s Car, TATA NANO, will definitely change the way world looks at Indian auto industry.

Finally the long wait is over. TATA NANO was launched in Mumbai on March 23rd by TATA group chairman Ratan Tata. A price tag of Rs 1 lac for the first 100,000 cars is the cheapest in the global markets. And this is what made it the most awaited launch.

With a 624 cc, 2 cylinder, MPFI engine producing a 35 PS output and a top speed of 105, Nano will not be disappointing on city roads. Though, definitely not a car for driving passionate but will serve the purpose of making a safe four wheeler for the two wheel drivers.

In a country where a car is looked as a status symbol, launching an economical option is a good business strategy. But how did engineers at Tata Motors manage to produce a car with such an attractive price tag? The answer is smart and intelligent work. The design takes care of all safety measures but at the same time reduces cost significantly. Have a look at the following cost cutting measures.

Cost Cutting features

• The Nano's boot does not open, instead the rear seats can be folded down to access the boot space.
  
• It has a single windscreen wiper instead of the usual pair.
  
• Some exterior parts of it are glued together, rather than welded.
  
• It has no power steering.
  
• Its door opening lever was simplified.
  
• It has 3 nuts on the wheels instead of the statutory 4 nuts.
  
• It only has 1 side view mirror.
  
• Putting the engine in the rear made more space available
  
• Light seats developed by Tata Johnson controls
  
• Specially developed Engine Management system from Bosch
  
• Specially designed tubeless tyres from MRF with low rolling resistance for better efficiency.
  
• Less bends in the metal body reduced cost
  

Thus making Nano cheap is a collective effort of Tata motors and its component suppliers. Another budget control was though innovative advertising. Unconventional medium like web search, viral marketing and innovative public relation driven campaigns are used instead of television advertisement. Brief news items are called nano news in some newspaper; television breaks are called nano breaks. Publicity is also done through Nano merchandise like T-shirts, key chains, etc.

Nano will definitely make an impact on the Indian economy by generating a lot of employment. Thousands will be employed in the Nano plants and its component supplier companies like Bosch, Sona Koya, etc. State Bank of India being the sole financer for the car will also benefit a lot. It will generate more income from loan interest and increased employment in the form of booking agents. A large of number of car dealers will also contribute to the economy. Employment for a significant number of mechanics at the service centres and revenue for spare part resellers can not be ignored. Nano’s plans for launch in Europe and other parts of the world will also act as a boost for the Indian economy.

The price of Nano being comparable to an Autorickshaw from Bajaj Auto may also lead to Nano being used as a public vehicle like an autorickshaw. If this happens we may see a more comfortable ride in the city protected from the weather conditions.

But with all the benefits, the price can also be a cause of worry. We have to be prepared to handle the hundred thousand cars coming on the road in the near future. It means more traffic on the road which would require a better road infrastructure to avoid traffic jams. There has to be increased parking space in the already crowded market places. Apart from the road infrastructure, owing to the extent of the car’s penetration in the Indian cities, Tata motors will have to build a strong service centre network and make the spare parts easily available.

Another cause of worry is its impact on the environment. In the era of climate change and global warming, an addition of carbon emission from a hundred thousand cars may not be a good idea. Nano complies with Bharat Stage II and III and is Bharat Stage IV ready, which would mean a lesser surface pollution than a two wheeler. But its fuel efficiency being much lesser than a two wheeler implies more fuel consumption and more carbon emission. This makes it necessary to accept its negative impact on the environment.

We should also not forget the bloodshed in Singur for the Nano plant which forced the company to move its operation out of the place. In news for all the right and wrong reasons, Nano’s launch was globally awaited and now we wait for the vehicle to be on the road.