Despite being hailed as the vehicle that would motorize a billion-strong economic powerhouse, the Tata Nano has turned out to be a spectacular flop, with November sales totalling just 509 units, from a peak of 9,000 units in July. For comparison, Mercedes-Benz cars, far beyond the reach of a majority of India’s population, regularly sells over 500 cars a month.
Quality problems have dogged the Nano, and are blamed for the disastrous sales decline. Numerous Nanos have gone up in flames, prompting Indian consumers to stay away for the $2,257 car. Despite the Nano’s troubles, parent company Tata motors has had a phenomenal financial year, with a 100-fold increase in profit and a share price increase of 78%.
[Source: Economic Times]