India’s Nano Car — Is it a No-No Car?

India's Nano Car was a brilliant idea but the population aren't buying many of them.

It is the cheapest new car in the world to buy, and its makers, the Nano car company in India, thought it would be wonderful to make a small, affordable car to bring car ownership to the masses. But it seems there's a problem, though with the vehicle, which sells brand-new for just $2800.

The difficulty isn't with the car itself. The car is great. It is with the public's perception of the vehicle as a poor-man's car. You see, Indians don't want to be seen driving around in -- or owning -- a poor man's car.

The result is that the Nano factory  has been turning out just 10,000 Nano cars every month. That's 120,000 for the whole of last year, although the factory was designed to make 250,000 each year.

You see, in India, anybody who can come up with $2800 is rich by local standards. The poor wouldn't be able to come up with $100. And no rich person can afford to be seen in a poor man's vehicle.

Perhaps the Nano's management might expand their market to sell this cute little vehicle to the (relatively) poor people in Western countries, such as in Europe, parts of the USA or in Australia and New Zealand. I think a lot of people there might be really pleased to buy a brand-new small car for less than $3000. That's about 1/5th of the cost of a cheap and small new car at the moment.

Picture Credit: Photo by High Commons, Wikimedia.