Tata Nano, the world's cheapest car is making noise again. This time it's not for good things, it is in the headlines courtesy of Cyrus Mistry the ousted Chairman of Tata Sons.
India's auto analysts are commenting on Cyrus Mistry's observations on the Tata Nano that the project must be stopped to avoid the further loss to the Tata Motors.
According to an auto analyst, the Nano was an out of the box idea and it created a wave of excitement in the global market.
But now there is no point in continuing this project. Nano has failed badly in the market since its launch in 2008.
Tata Motors has tried all possible ways to revive the sales of the Nano but there is hardly any buyer for the mini offering from Tata. And now it's time to move on.
As per the auto experts in India, the sales of Tata Nano has plummeted down to just 600 units per month. And this is costing Tata very heavily.
Tata Nano was Ratan Tata's pet project, his vision was to make cars affordable for common masses of the country. He stated the car would sell for Rs 1 lakh when it was launched.
But due to delay in production, shifting of the manufacturing plant from Singur to Sanand and due to changing trend in the Indian automobile market these factors had a bad impact on the Nano.
The whole market has changed and if a car is not doing well it has to be replaced it's simple as that. As there is no profitable turnaround the only way Tata Motors can come out from this turmoil is by shutting down the Nano project.