Wednesday, July 22, 2009

Nano Furore

Flashback - December 14, 1983

Indira Gandhi hands over the key to the proud owner of first Maruti 800 rolled out from the Maruti Suzuki plant at Manesar, Gurgaon, then an upcoming industrial town outside Delhi. The idea of a small people’s care was christened by the late Sanjay Gandhi, son of Indira Gandhi. Those days only politicians were allowed to dream and fulfill the same. A common man, big or small could dream but not dream of fulfilling the same. Sanjay Gandhi came with the concept of people’s car (Maruti), who were apprehensive about owning big boxy Ambassador or Fiat. The two cult brands of its time which were washed away by the people’s car of 1980’s.

Mr. Harpal Singh features in news item again. The only thing he could be proud of in his lifetime was the day he was handed over the key of Maruti, the first person in India. In 2008 when Maruti completed its 25 years and Nano launch at the Auto Show in Delhi. Nano brought the old forgotten history story into your drawing room. No other name features, the designer, the idea-maker, none but Mr. Harpal Singh. Or perhaps he is the only living man from those times. I do not know the reality to it. But Mr. Harpal Singh is a reality and living.

Back to Year 2005
Mr. Ratan Tata expresses his desire to produce Rs. One Lac for the Indian market. Mr. Jagdish Khattar, then MD of Maruti Udyog Ltd. scoffs at the idea saying you can sell Rs. 1,00,000 car. Its not an uphill task but to produce a car in Rs. 1,00,000 and make profits out of it is an extremely challenging proposition. Mr. Tata had a dream to see every Indian on a four-wheeler. So he said Tata Group has to take the lead to offer such product to Indian people. Mr. Tata was moved to look at an Indian family husband-wife with two kids driving on a scooter, so he said it and has done it by 2009 by offering Nano to Indian public.

In 2009, Mr. Raghunath Vichare goes down the history books, when he is handed over the keys of Tata Nano to be proud owner of first Tata Nano in the country. Dr. Manmohan Singh does not hand over the keys of first Tata Nano to Mr. Vichare but Mr. Ratan Tata as these days people dream to fulfill it which earlier was the right kept only with politicians.

Can anybody figure out, why on earth Rs. 1 Lac Car is generating that much interest, when there are all ranges of cars available in Indian market, all the big and small brands of global cars are available in Indian market ranging from Hyundai, GM, Ford, Mercedes, luxury cars like Lambhorghini, Rolls Royce, you name it and it is there at your doorsteps. My father told me the days when first Maruti was launched, it was the biggest achievement of life for people who were lucky to acquire one. Letters would fly from PMO for buying a Maruti car and that too after paying a black market premium. Huge political influence was required to buy one Maruti car. For marriages, the only consideration groom’s family demanded was a Maruti car, not because of the money but because of the quintessential societal reputation attached to it and acquiring one was a painful process stretched over months.

Well if you ask Mr. Ratan Tata about the financials of the project, it would prove to be a big drain on Tata Motors numbers. Market analysts are not happy with the launch of Tata Nano. For Tata to break even on the Nano project, they need to manufacture and sell 3,60,000 cars per year. That’s a huge number. I don’t know if the furore is upto its mark or not? But for those who cannot afford a car. Nano is the definitely the car for them to fulfill their dream to own a four-wheeler.

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