Tata’s rivals acknowledge feat
While launching the car Ratan Tata said he expected some reaction from rival companies and the impact of Nano in future would determine that.business Updated: Mar 23, 2009 23:17 IST
Major passenger car manufacturers in the country including Maruti Suzuki and Hyundai Motor India remained watchful and cautious as the Tatas fulfilled their promise of launching the Nano in this financial year. With the benchmark of a small car and penetration of cars set to reach new levels, industry rivals admitted there will be takers for the car.
"I feel no different to what I always felt. We have to congratulate Tata for accomplishing such a feat," said R C Bhargava, Chairman, Maruti Suzuki India Ltd. "I am sure Nano will take away some of the existing market but equally it will create its own market as well."
While launching the car Ratan Tata said he expected some reaction from rival companies and the impact of Nano in future would determine that. But Maruti which has a commanding over 50 per cent marketshare in the passenger car space maintained it would neither slash prices of existing models nor is it interested in a similar product of its own.
Korean auto major Hyundai Motor India, whom Tata Motors is likely to leapfrog as the second largest passenger car maker with the Nano, went into a shell refusing to react on the launch.