Whatever be the future one sees for the auto industry in India, auto analysts, urban planners, history - all seem to indicate one thing - the Tato Nano small car is likely to take congestion to tier II and III towns.
"Nano is likely to create its own segment of users, and seems less posed to affect the A2 compact car market," said KPMG auto advisory manager Arun Krishnan. When the Nano bookings began earlier this month, sources in Tafe Reach, a Nano dealer in Tamil Nadu, noted that save two customers, all the other applicants were first time car buyers, and mostly two wheeler owners. It will be an additive to the existing cars on road, and not a replacement. "Also, for the Nano to really hit the market, Tata will have to focus on tier II and III towns."
Read more: http://economictimes.indiatimes.com/News/News-By-Industry/Nano-likely-to-take-congestion-to-tier-II-and-III-towns/articleshow/4444254.cms
Source: The Economic Times (http://economictimes.indiatimes.com)