Tata Nano Case Study

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Secondary Data Nano was ranked last among small cars of entry-level segment in terms of customer satisfaction according to a study by market research firm TNS ( '2010 Fourwheeler Total Customer Satisfaction' ). The best-selling model of Maruti, Alto topped the entry level small car category, followed by Omni and the Maruti 800 followed. One of the major scenarios currently is that the expectations from the bottom end cars are rising. The owners of Tata Nano expect enhancements in terms of design and Maruti 800 owners expect better servicing, according to the survey. Alto scored 91 points whereas Nano got only 70 and was placed last. Macroeconomic Picture As the Nano was evolving around 2003, the Indian economy was on a boom, also leading…show more content…
The two-wheeler sales rose consistently throughout the year in 2009, while the sales of passenger vehicle fell, the highest in more than a decade, as the RBI (Reserve Bank of India) implemented the fastest round of interest rate increases in its history. The passenger car market was the worst hit as this is the segment where there is a huge dependence on loans, at around 80%, and on the flip side only about 30% of motorcycles is bought through loans. On a another perspective, Mr. Deepesh Rathore, the managing director of IHS Automotive in India said that people wanted to feel good when they bought a car but presently they are worried about the situation in the economy. Generally in India, motorcycles outsell passenger cars in India. Tata Motors wanted the motorcyclists to upgrade to Nano, but that become difficult due to the increase in interest rates have risen. Another aspect favouring the sale of bikes was the petrol prices. As the petrol prices keep rising and the price of the cars is also on their way up, so especially for shorter distances and duration, bikes make more

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