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        Does Tata Nano Pose a Threat?



        Most of the auto makers in India remain unfazed by launching of the Nano. The Maruti Suzuki Chairman stated that there was some marginal effect on the Maruti sales but confirmed that there would be no price cut in the M800 model to compete with Nano. He also cleared that Nano and M800 fall in two different segments and are not competitors. “Nano may impact the sale of our entry-level model Maruti 800. This is natural whenever a new car is launched in the market. Nano will also expand the market and add incremental numbers to the domestic passenger car market,” he said. “There is no direct competition,” he added.

        Most of the two-wheeler manufacturers also denied having any effect on their sales figures due to launching of the Nano. Pawan Munjal, Hero Honda MD and CEO also stated that Nano has not affected the two-wheeler segment as anticipated by the speculators. Bajaj Auto and TVS motors also denied having any major impact of the Nano launch on their sales figures so far.

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