The Nano was not the only car that made a splash across newspapers around April 23, the day of its launch. Another car company also carried huge advertisements of one of its bestsellers at the same time.
It was Maruti Suzuki telling prospective customers the virtues of its small car, the Alto. Radio ads exhorting two-wheeler owners to upgrade to a Maruti Omni too were put on air.
Was it the Nano effect on the market leader (market share of over 52 per cent at the end of February 2009)?
In the days following the Nano's launch, car makers said the small car will eat into the two-wheeler market; smug two-wheeler makers retorted that the damage will be borne by carmakers.
The debate will take at least a couple of years to settle, reckon sector experts, especially since the Nano will take another year to be produced at full capacity.
But it will usher in an irreversible change for Maruti Suzuki.
After 25 long years, Maruti Suzuki will no longer be the first point of contact for a large number of car owners. This is important as it allows a carmaker to hook a customer for life by providing him with an option whenever he wishes to upgrade.
In fact, the company at one time used to sell the Baleno at a loss only to make sure that any customer doesn't desert it when he wants to upgrade from a small car to a sedan.
Text: Sayantani Kar
Image: Tata Nano. | Photograph, courtesy: Tata Motors
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