As Tata Motors? Nano revs up to hit the market by September, its closest competitor Bajaj Auto, which showcased its concept car at the Auto Expo recently, seems to be in no hurry. Analysts say that Tata, with the Nano, will have a first mover advantage in the small car market, which according to KPMG, is poised to grow at 15% to 20% every year. Bajaj, which has just introduced the prototype and not the actual machine, will get three to four year?s time, specified by the company to get into production, to study the market and accordingly price and position its car, indicated analysts.
?It is a totally new segment for Bajaj,? said a Religare analyst, who feels it is too early to pass judgment on any of the low price tag cars. He added that the new market will definitely grow, but people would not wait for three-four years for the product and rather go for what is available now.
Abdul Majeed, partner, PricewaterhouseCoopers, who leads the auto practice there, said, ?People have a tendency to own a car for a maximum of two to three years and then move to another.?
He said that the segment had low penetration, the reason behind the success story of Maruti 800. This situation still persists, despite Maruti 800?s entry.
?Maruti 800 has been the bread and butter of Maruti Udyog,? he said, adding that launches like Nano will put Maruti on its toes and compel it to go for competitive pricing.
?One should not be surprised to see a couple of more players getting into the segment in the next three years, if Tata manages to sell half a million of the Nano,? he added. Other than the market and customers the two cars are targeting, there is one more striking communality between the two cars. It is the conceptualisation. Both Tata and Bajaj sketched their small cars keeping in mind a two-wheeler, with safer means of transport and cost as the two main parameters. Bajaj plans to roll out the car in association with Renault and Nissan in the next two to four years. However, Sylvain Bilaine, managing director of Renault India, said, ?The decision of whether to go with Bajaj or no for small car in India will be taken in one and a half month?s time.?