Rata Tata, chairman emeritus of Tata Sons, said branding Nano as the cheapest car was a mistake and was one of the reasons for the model not taking off. Interacting with students of Great Lakes Institute of Management, he said the mistake was in postioning the model as the cheapest car instead of affordable car.
He said people did not want to be associated with a cheap car. The small car was designed by people with an average age of 25-26 and the process of designing was exhilarating. However, he said the one year delay for car launch because of protest around the car plant in West Bengal and the subsequent shifting to another place allowed rumours to float around the car. “The aggressive stand by the West Bengal government delayed the launch and led to losing the excitement around the new small car. And our competitiors got time to spread stories about the negativity,” he said.