“The idea of a BOP (bottom of the pyramid) business targeting low-income people was unfit for the auto industry,” said an official at one of Tata’s rivals.
Tata made partial modifications to the Nano in January, including new colors, to target young city dwellers. But the new Nano has so far failed to attract many consumers.
Making the market
Meanwhile, Tata’s rivals from Japan, the U.S. and Europe have aggressively introduced new cars in India, taking customers away from the troubled Indian automaker.