Tata Motor confirms discontinuing Tata Nano - the cheapest car in the world

by Vivaan Khatri | 03/08/2018
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With the official announcement from Tata, the Nano will be discontinued. Now, we will have to say goodbye to the cheapest car in the world.

Tata Nano has always been known as the cheapest car in the world. The title has established a well-recognized appearance for this small car from the Tata. However, this title could not guarantee a stable sales volume. 

In the recent months, rumor has it that the Nano will be discontinued soon. And at Tata Motor’s 73rd Annual General Meeting on August 3, Natarajan Chandrasekaran, the Chairman of Tata Motors has finally and officially announced that Tata Nano will no longer be on sales.

Tata Nano yellow color angle side

Tata Motor has confirmed the end of its renown cheapest car in the world - Tata Nano

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The obvious reason for the discontinuing is its sheer drop in sales. In June 2018, there were only three Nanos to be sold and there is only one to be produced. On a bigger picture, Tata Nano has dropped from 9,000 units sold in 2010 to 500 units in 2011. Apparently, the appeal of an affordable price doesn’t seem to be an effective strategy. 

The fall of the once most-awaited cars is probably caused by the concern for safety. A Nano has caught fire in Mumbai streets, and more car fires followed in the following months. These incidents have marked the decline of the name Nano.

Tata Nano caching fire on the street

The concerns for safety is the main reason for the downfall of Tata Nano

Fast forward to 2018, with Indian’s newest crash test norms coming into effect, it is unlikely that the Tata Nano could pass the test without upgrading. And the modest sales of the Nano could never make up for the high cost of new updates. Even if it receives the necessary updates, it would have to raise the price and deprive of its core selling point. Therefore, the departure of the Nano is unavoidable. 

The end date of the Nano is still not confirmed yet, however, it is speculated that the production of Tata Nano will be ended in 2019.

Tata Nano is only the only small car who goes through a hard time. Renault Kwid, Datsun RediGO, and Maruti Alto have the same experience even not as harsh. That’s why Renault Kwid has recently decided to upgrade their interior in order to improve its performance in sales. It seems that the segment for affordable small cars is losing its position to the higher price segment. It seems that Indian customers have extended their budget for car buying and lean toward the higher segment.

The discontinuing of Tata Nano is compliant with its new strategy. New models from Tata will follow its new platforms, which are ALFA and OMEGA. These changes are hoped to improve their sales volume.

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