The New York Times reports that the sales of the Nano, the ‘people’s car’ from the Tata group have gone way down.
Analysts say the Nano situation demonstrates it may not be sufficient to make cheaper, smaller versions of existing products to win over that broad base of customers. Companies, they say, must also make sure the products are widely available and are seen as safe, useful and alluring.
“The bottom of the pyramid continues to be where the action is,” said Hormazd Sorabjee, editor of Autocar India, a magazine. “But the aspirations of people are moving up. People want to jump into something more substantial.”