Competitor Analysis Essay

Tata Nano’s competitors can be classified on three scales – Economy, Performance and Convenience. Based on Economy Though Tata Nano was launched as the 1 Lakh car, it’s exact price range varies between Rs.1.59 lakhs to Rs.2.23 lakhs in the market at present. With this price range, in the four wheelers category there is Maruti 800, Maruti Suzuki OMNI, Maruti Alto 800 and Hyundai Eon which has a price lesser than Rs. 3 Lakh. Being the cheapest car available in India, they also have competitors in the two and three wheeler segments. Tata Nano would be the next best option for this segment of customers if the budget limit is in this range. Tata Nano positions itself to be a family car available to those who can afford a bit more than they would spend for a two wheeler. Based on Performance Tata Nano has a 624 cc engine and has a maximum power of 37.4 bhp. Compared to its counterparts in the same price range, Tata Nano has a disadvantage on its engine capacity and maximum power. Mileage is also a crucial factor for consumers in India who look for â€Å"Value for Money† products. Tata Nano claims a mileage of 22.2 Kmpl for its base model and this compromises on its engine capacity and other performance characteristics. Most of the other features of the probable competitors of Tata Nano are almost at parity with it. Based on Convenience During the planning stages of Tata Nano, the team of engineers who designed the vehicle faced the toughest challenge of releasing a car that was both attractive as well as cheap. Tata Nano is 8% shorter and has 21% more interior space than Maruti 800. Tata Motors Limited have given due importance for the design of this low budget car to not lose out in the market just because of it being unattractive. It has the best in class maneuverability – lowest turning circle diameter. The weight of the vehicle is just 600 kg which is also comparatively lesser than Maruti and Hyundai Cars. This could be taken as both an advantage as well as a disadvantage. But in this case, the light weight of the vehicle contributes to some of the crucial distinguishing features of the car mentioned above. Some of the major launches by competitors that are specially focused to give competition to the Tata Nano are Bajaj’s RE60 and Renault has also announced that it would be releasing a new car in this category. None of the launches against Nano could disrupt Tata Nano’s market share significantly. Tata Nano is also planning to bring in variations to its initial model to get in line with its re-launching scheme of focusing on a the youth segment than the family segment. Comparison of Specifications of Tata Nano and it’s closest competitors Top 10 best-selling cars in India