In 2009, Tesla bossman Elon Musk made a remark about Ratan Tata that is now doing rounds on the internet. The visionary multibillionaire seems to have high respect for Tata. A video shared on Twitter shows Musk being asked about Tata Motors, to which he says he knows Ratan Tata. He then says ‘Ratan Tata Is A Gentleman And Scholar’. The conversation then revolves around the Tata Nano- ‘The little sedan for $2300’ as per the interviewer.
The Tesla CEO says ‘it is nice to have affordable cars’. He also says that in the years to come, gasoline (petrol) prices will go further up, making new car acquisitions feel less pricey than operating them. He even predicts that gas prices could touch $200. This conversation seems to be more than a decade old. The interviewer can be seen asking Musk for a timeline for the same, to which he replies rather diplomatically with a ‘ Whenever the next boom is’
He fulfilled his promise to build the world's cheapest car.
– Ratan Tata wanted to build a car, which the middle class of India could afford and so he delivered on his promise and launched Tata Nano for just $1,200 (₹1 lakh) in 2008.
– @ElonMusk also shared his views on the… pic.twitter.com/QqTY5KuQLK
— Nico Garcia (@nicogarcia) August 26, 2024
A deeper analysis of the footage would suggest Musk to be soft-pushing electric vehicles over extremely affordable ICE hatchbacks like the Nano. He gently hinted at the possible lack of financial feasibility in ICE ownership, even in a context that spoke about a dirt-cheap ICE car.
Tata Nano: The Indian ‘Cheap Car’ Dream That Went Wrong
Ratan Tata once envisioned the Indian middle class to have an affordable car that did not compromise much on safety or fuel efficiency. The Nano was the production form of this dream. The tiny hatchback made headlines with its market debut in January 2008. Priced at Rs 100,000 (roughly $2500 back then ), it turned out to be the world’s most affordable car back then.
Tata Motors was quite vocal about the car’s ‘World’s cheapest car’ tag, something that would contribute much to its demise later. It was a rear-engine, RWD hatchback equipped with a 624-cc petrol engine, delivering a mileage of up to 20 kpl. It was designed as an affordable offering for people who couldn’t afford the Maruti 800 or an Alto. The idea was great and initial sales soared. Nano was, however, criticized by many for how small and basic it felt inside. Several incidents also raised concerns about its safety.
People soon started demanding more from the Nano. Several updates, variants and special editions were introduced to address these. This meant the price was no longer 1 lakh rupees. Rising manufacturing costs also forced Tata Motors to move up from the iconic price point, making the Nano gradually lose its price advantage.
Despite all these challenges, Tata Motors managed to sell the Nano for a whole decade. The micro hatchback was shelved in 2018, succumbing to low demand and the introduction of stricter emission norms. Meeting the new standards would demand major mechanical re-engineering on the Nano’s teeny powerplant. Tata found it financially inviable considering the slow sales performance of the moniker.
However, there were things that we loved about it and which its discontinuation makes us miss. The Nano had some fun-to-drive factor to it, considering it was an RWD car with low vehicle weight and a small capacity engine. It did have the power-to-weight advantage, compared to some of the modern Tata hatchbacks. Also, the Nano Twist launched in 2015 is still the best sub 7 lakh city car ever sold in this country. It was super-compact, had a peppy engine, offered an AMT gearbox and had electric power steering! Driving it in the city was extremely easy.
Tesla Taking The ‘Let’s Go Cheap’ Way?
Fast forward to 2024, and we have Tesla announce an upcoming range of affordable products. (Did Musk take a lesson or two from Tata?) The manufacturer is known for its high-end premium-priced offerings, and the shift to ‘going affordable’ could be attributed to the recent dip in global sales. It had a challenging first quarter. Tesla’s YoY revenue and profit dropped by 9% and 55%, respectively.
The upcoming Tesla Model 2 is expected to be an affordable EV. However, there have been recent rumours of it being axed. Elon Musk in a statement, dismissed these as mere rumours and reassured that the company will bring more affordable EV offerings, that could be out in late 2024 or by 2025.
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