Why are Tata Nano sales down in India? Re-positioning needed as lower middle class do not want to be seen as “Cheapskates”

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Tata Nano initial sales are down in India and one reason is positioning. Meant to convert 2 wheeler (scooter, motorcycle) owning families the car is positioned as what it is- the “world’s cheapest car.”

The problem is that even the target market lower middle class does not want to be seen as a “Cheapskates” in their own milieu. This is a culture where those with non-air-conditioned cars prefer to sweat it out in summer as neighbors watch rolled up windows and enviously assume that the Indian version of “Joneses” have moved up ! The family car is a highly visible thing, particularly in tightly packed urban neighborhoods. Here some people have pricier cars and a new Nano needs to be seen as a step up through better marketing and positioning.

Who would have thought that the Tata Nano would need marketing in a booming India? Well it does…

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