“‘People’s Car’ Nano To Go On Sale In India”
In an article in the March 22, 2009 issue of USA Today, Booz & Company Partner Vikas Sehgal (North America, India) called the launch of Tata Motors’ tiny, inexpensive “people’s car” a bold idea that could lead to booming sales as more people move up the socioeconomic ladder and join the working class. The Nano will be sold for 100,000 rupees, or about $2,000 as an alternative to mopeds, often used even by families to get around cities and rural areas. “There was a gap existing in the market,” said Sehgal, “and the Nano is being launched into that gap.” But a faltering economy makes prospects unpredictable for the Nano, already launching six months late because of a political battle over where the car was to be built. The delay has given rivals time to work on their own versions of a Nano. For Sehgal, questions remain: “How many...people will buy (the Nano) is still an open question,” he said.