KMM asked me to write something about Tata Sons new "Peoples' Car", the Nano. The questions on KMM's and lots of other people's minds are as follows: - Will this one new inexpensive car open up the world market for the Tata company, which is mostly a regional car company in India?
- How will the competition react? Will other car makers start manufacturing cheaper cars, or lower the prices on their cars?
- What is the best way to market and brand this type of car?
- How will American consumers (or consumers in your industry) respond to an Indian car?
- Will consumers worldwide buy the car for its good gas mileage?
- Or will its lack of features and size deter them?
- What kind of technology is in such a cheap car?
- How will the Tata Nano affect the Indian car industry?
I admit I got a kick out of these questions. I don't know if I got a kick out of them because I'm in my early 50s and vividly remember my cousin, Paul, picking me up for his wedding rehearsal in his new Honda Civic. Paul was 5'11" and about 175#. I was the giant of the family at 6' and 210#. The Honda Civic was a two-door, four seater, you've got to be kidding, Paul, you expect me to fit in that?
I'm thinking most people won't appreciate that Honda's entry vehicle into the American market was smaller than the Tata Nano and gave way to some of the most innovative automotive technologies and to what is now recognized as one of the largest auto manufacturers in the world (with many manufacturing facilities based in the US).
Honda took the long view and gave good quality for a good price at a time (the mid 1970s) when Americans were hungry for it.
Will the Tata Nano win over the American market? Is it good quality at a good price? Americans are hungry for both so that element's in place.
If there is anything going against the Nano right now it's that most call centers are based in India and many Americans of European descent have built up a prejudice about things they perceive as Indianish or from some mythical "India" they have in their mind (not a lot of Americans of European descent have visited India. It's not a vacation spot in their psyche. It's still the place you go to find yourself, to explore alternative health schemas and religions and belief systems).
And give it time. Everything changes. Everything -- even people and their beliefs -- evolve.
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