Will TATA’s Nano command a premium

The much hyped release of Nano was a welcome change in these recession hit times. For once both the consumers and the manufacturers were speaking in highly positive tones.

It prompted a strange discussion at my house. My dad feels the euphoria around Nano is so much that its booking delivery process would command a premium. Something which has largely been unheard since Maruti days.

He tells me that the kind of excitement is similar to when Maruti had entered the Indian market – once a domain of only Fiat Ambassador. A friend also tells me that they had booked two Maruti cars in those days and sold the 2nd one at a almost 100% premium. Phew!


My dad insists that in this age of communication, the dream of NANO has already been sold to millions and not just in metros but in smaller towns also. Point taken. So, he says, this means that the # of people who would book will far exceed the manufacturing capacity (atleast in the first few months) and this would lead to a substantial waiting period- the trigger for market assigning a premium on Nano.

I had my doubts given the economic slowdown and lack of credit etc etc. But yday I went to drop some one at the station and during the time it took me to get my car out from the messy parking lot I could hear a group of auto-drivers talking excitedly about how they would use the Nano as their “taxi”- something I thought as a distant reality.

I have started to believe that Nano might end up commanding a premium in the market. But I am more interested to know what u think