Nanomania grips the nation

Just two days and the verdict is out. If the millions thronging Hall No 11 at Pragati Maidan is anything to go by...

Just two days and the verdict is out. If the millions thronging Hall No 11 at Pragati Maidan is anything to go by, the people8217;s car Nano is an overwhelming hit, even before anybody outside the company has driven it. With the initial lot 250,000 units expected to disappear even before it reaches the showroom, Tata is seriously threatening Hyundai for the number two spot in the auto industry. If the potential demand of 2 million cars is any indication, Nano is all set to sweep India, if not the world, in a very short span of time.

Tatas had a forgettable year in 2007 but Nano8217;s impact will not only take Tata Motors but the industry on the whole to the likes of China in the growth indices. According to research firm CSM Worldwide, India8217;s passenger car and light commercial vehicle LCV production is estimated to go up to almost 5.5 million by 2016 from a little over 1.7 million right now at a compounded annual growth rate CAGR of almost 25 per cent. By 2016, India8217;s exports are expected to cross 0.7 million.

8220;This vehicle, as I see, will cannibalise some of the lower-end car market and some of the higher-end motorcycle and scooter market. It will not only eat into both of those segments, but also create a market of its own. Also, it8217;ll expand the market by creating a niche that did not exist previously,8221; Tata said.

In the process, the rat race for the numero uno spot will also intensify. Tata is expected to nudge ahead of Maruti to the number one spot as early as 2013 growing at a CAGR of 30 per cent for the next six years to produce 1.15 million cars in 2013. Though questions about its impact on congestion continue to linger on, India with only 7 cars per 1,000 people provides an opportunity bettered only by China 6 per 1000 and Indonesia 3 per 1000.

But who are the people who are finally going to buy this car? Is it intended only for those who own a two-wheeler and aspire to buy a car? Or, is it for the rural markets where penetration has been low and finance a problem? For the Tyagis in East Delhi, the Nano could be the fourth car in the family. They already own two sedans and a MUV and on the face of it there is no need for them to invest in another car. Even then, they are as enamoured by it.

8220;The Nano would fulfill the space of a small inexpensive car that my wife can take over for her daily chores like marketing,8221; says Kishore Tyagi, the patriarch of the six-member family.

The two-day old Nano has swiftly found its way into the heart of India. With an enviable price tag and cute looks, people from a cross-section of the society have different reasons for buying the car. While it satisfies the need for practicality for the Tyagis, for Aabhas Sinha, a marketing executive from a mid-range IT firm, it will be an answer to a long-standing aspiration.

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8220;I have been driving a Hero Honda Splendor for about ten years now, but always wanted a car,8221; he says. 8220;The Nano will help me realise a long-cherished dream and also give my family some level of comfort on the move.8221;

As the Nano graduates from the shop floor to a private garage, it would have a different meaning for different people. It happens very rarely that a Tyagi and a Sinha have something in common and that would be the hallmark of a Nano.

Some trivia

8226; Plastic and aerospace adhesives were tried out for the Nano, only to be discarded later

8226; Initially, it was conceived as a low-end rural car without doors or windows and with plastic curtains that rolled down

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8226; The instrument cluster was put in the middle so that the same dashboard can be used for left hand drive and exported

8226; Higher versions will have AC, leather seats and even higher spec engines and automatic transmission