Those interested in purchasing cheap cars have passed on Tata Motors' Nano, which went on sale in 2009.
The Nano was marketed as "world's cheapest vehicle," but consumers shied away from purchasing the vehicle because the price was so cheap, instead opting for a used vehicle or rival of the Nano that was a similar price, the Agence France-Presse reported.
The vehicle had a price tag of $2,800, but Tata Motors fell short of its goal of producing 25,000 cars a month. The Tata Motors plant that produces the Nano is capable of producing 250,000 cars a year, but has only averaged 10,000 a month, according to R. Ramakrishnan, business head of Tata Motors passenger cars.
"The car didn't project the right image," Murad Ali Baig, Indian automobile expert, said to the AFP. "Also, for the same cost as the Nano there are quite respectable second-hand cars – with air-conditioning."
Tata Motors, which also produces the British luxury Jaguar and Land Rover Brands, has insisted that the company will correct its mistakes and hopes to sell more Nanos in the future.
Tata Motors recently reported its highest close in almost eight months, boosted by sales of new Jaguar vehicles.
