cheapest car near extinction
Be its India’s rising purchasing power or a miscalculation on the projected sales growth, the “People’s Car” TATA Nano saw a rapid decline in the past couple of years. cheapest car
During the inception of the Nano car, it was projected with a sales volume of 2.5 L units.
But, the company made the highest sales of around 73K units on the fiscal year 2011-1012. Steadily declining over years.
And it stood at 7591 units’ sale in the fiscal year of 2016-2017. June 2018 saw the worst month, where only 3 units were sold.
In the same month, only 1 unit was required to produce from the Sanand facility in Gujarat.
What caused this car to near extinction
The early days, saw some jolt when the factory was forced to move from Singur, West Bengal to Sanand, Gujarat. It was only during the initial days, that the customers were able to buy it for INR 1 L.
Following years saw a rise in the price and it currently is marked at 2.83 L. The company attributes this rise to the material cost.
“The world’s cheapest car”, “The people’s car”, “ The Indian Jugaad car”, “The car of a million dreams” is coming to an extinction in 2019. Tata has confirmed its discontinuity.
The decline in the sales can be attributed to the increase in cost price, which no longer remained the car of choice for the millions of lower-middle-class Indian.
With a little extra price and easy availability of car loans; cars of choice and stature were available to the masses. Resale value of the car was at the bottom of the list.
Reliability is yet another issue. Car catching fire short-circuits due to heat, sparkplugs malfunctioning and fuel leaks were some of the common problems with this car species.
Whatever the reason be, there is a moment of silence when the worlds cheapest car is heading for its extinction. Cutting the car’s lifeline short at a mere 10 years.