Sharp decline in sale
Not long ago, when I was going through the news of slow down in the auto market section of India. The most shocking news, I came through was, in the past six months merely a single unit of once most advertised car, of TATA Automobile group with the brand name of “Nano car” was sold. Although, the recession in auto sector of India is not an uncommon. This auto sector remains fluctuating. Reasons, behind are that firstly, the product of auto section specifically in four wheeler segment are costly one. Along with, perhaps people already too have bought sufficient numbers of vehicles. Secondly, the second hand car sell business of well maintained and good condition car, is also flourishing side by side.
Mind – set of common Indian People
But despite of a downfall of approximately 20% in price value, other cars are on sell and doing the business at par. Then, why it so occurred with the “Nano car?” Perhaps, the main factor in the downfall of this specific four wheeler family car, is the “mind set” of common Indian people. These people, majorly comprise the middle class and lower middle class in the Indian social system. This mind set is of “pomp and show off.” This propensity loaded with an intent. So that, our neighbors, acquaintances and people at large, should not judge us below the bracket of prevailing living standard.
To understand this social phenomenon, we have to look back at the initial stage of the present car revolution in the Indian market. In the beginning of the decade of 1980, Maruti- 800 manual car was introduced by the Suzuki Car Co. of Japan. It became the most sought after and hot cake product. For, it suited to utmost the pocket of Indian buyers. And for continuous two decades, it succeeded in capturing, the “status symbol” car of the Indian families. The noteworthy factor was, up to that period of time, not so many other foreigner investors had registered their presence in the Indian car market, to compete with this brand.
Later on when so many other companies jumped into this field. Till that time, the Marutii- Suzuki company, management already had had research and analysis of the growing Indian market. It had, already introduced so many new models in other upper segments, like sedan and multi utility vehicle segment etc.
The influx of Neo middle class people
The Nano car was introduced into the Indian market with the same initial slogan of a car. The slogan was, “a car to be with in the reach of common man of India.” But, in between these two decades, a new category of multitude of new buyers, with affluent standard, had been grown up. These were people, who had raised their buying capacity, with the increase of their income bracket. Now a new middle class had been introduced in social strata.
The noteworthy characteristic of this middle class was, it candidly admitted its impoverish status of bygone era. This admittance they happened to make,without any any inferiority complex. But were saturated with a superiority complex. This made them conceive the ideology, now they were not eager to receive any “stain” of poverty, on their self acquired present status. This mentality of the middle class, not to be tagged as a “poor class” proved drastic, in the down sell of the Nano car.
Dream Project
Here, it is worth mentioning that Nano car was a dream project of renowned industrialist of India, Mr Ratan Tata. He, with intent to facilitate the common man of India, had planned to sell his car at an attractively very low price of Rupees 100,000 only. This value of car, in International market did cost about 1000-1500 US dollars. Whilst the Maruti-800 car, at the same time had a cost of about 3000 US dollars .
Not only this, Tata company too had offered the booking of the car at a premium rate of rupee one only. The first ever car, came out from the factory was sold through lottery system. Interestingly, first ever allotment of the car was given to a cobbler (shoe repairer). This cobbler, happened to repair people’s shoes, by sitting at some nook of a road in open air. This first ever sell of the Nano car were so fabulously advertised. This first most sale, created a hype across the India with a pomp and show. It tried to give a message, how low priced the car was. Even, a shoe repairer could afford to buy this product, of the car company.
Factors for the failure of the car
Here comes, the factors that led to the failure of this dream project, of the great industrialist of the India . The management liable for the marketing of the car, had in its over enthusiasm and innocence had committed the blunder. This blunder was, of not reading the mentality of the “upstarts” of middle class or the Indian community at large. The Indian community comprises of various religions, castes and classes and sub classes. This community, lives with its unique feature of targeting its status, with its so called wealthiness. Chiefly, car and house are the symbol of status of this community. Perhaps, the same factor may be applied with every developing society.
This class of society, feels a felicity when it gets compared its status to the next upper class bracket. This comparison, makes this class exhilarated. Now with a paradigm, I explain it. If you make an offer to a middle class Indian( who owns a good conditioned house in a good locality.) The offer is, a government’s allotted flat to a poor class is on sell, at a reasonable price He may opt to buy the flat, finding it profitable. But never he will live in that flat. His sole intention is of investing the money is, so that, in near future he can earn some profit by selling it.
failure in judging the phenomenal mind set
The same phenomenon occurred with Nano car. Some buyers from elite class or middle class, who could easily afford to buy a Nano car, no doubt purchased it. But, with a show off, so that they could use it, to roam in the local market for shopping of groceries etc. For, it was handy in parking owing to its smaller size. The truth is, with its first ever sell of car to a cobbler, this car got tagged in the psyche of Indian people as a “car of utterly poor people.” And no one, after securing a status of successful and rich person, was eager to bear the tag of owner of a car of utterly poor people.
Mr Ratan Tata had a vision to launch a car for a “common man.” He did that, after removing so many big hurdles. But on the same time, people made a big hole in his pocket, by targeting it with a mocking name. This resulted in the shape of, drastic failure of the project. The such an untoward situation, Nano car faced. Ironically, if some one in the locality had bought the Nano car, he would be refer in the common parlance, ” er…the same mister Sharma with Nano car.” This mocking, too was in derisive form.
On the same, if some Mercedes car owner had to be referred in common parlance, never he was mentioned as , “Mr Gupta with Mercedes.” But be referred, as by his vocation, “Oh ! Mr Gupta, the builder one.” Here it hurt people to mention his Mercedes car status. For it down rated their own status either. In total, Nano car was rejected with the tag of , ” car of poor people.” This is the glaring paradigm of our Indian society, how it lives with a double standard. Penned by– Vinay Pharasi …..