Hello friends I´m Sergio Oliveira. Eduardo Vargas. How are you Lalo? Hello sergio, here once again, thanks for coming thank you, So what are we talking about today? as i was telling you, I wanted to talk about the Tata today, people set out to make the “cheapest” car in the world, which ended up rather poorly because of the slogan not so much so because of the actual car Saying that they did poorly, would be an exageration, it did not do as well as they would have hoped The car is functional and makes money for them, more than anything in India where it was made so what what are we talking about? for those of you that don´t know, Tata is one of biggest businessmen in India, his name is Ratan Tata, the owner of the company, so there is this company which is named Tata, and they don´t only make cars, here in Guadalajara Tata is present, not with cars, but it is present its company which is multi – multinational?- Yes it is Multinational what im trying to say is that they do alot of things,-like Mitsubishi, from blenders to satellites – exactly. So Tata does everything, and their Automotive division is not the biggest in India its the second biggest below mahindra, Ratan Tata said, and this is the romantic version of the story, how true it is i really don´t know He said he would walk around and very frequently he would see entire families on a scooter a really small motorcycle, with two or 3 kids, and that happens here in Mexico too especially within the country, in bigger cities like this one you still see it but in smaller cities you see it alot more, so his idea was that people that buy a scooter to transport their family should have the alternative of buying a car for the same price, so how much does an average scooter cost? 2,000 to 2,500 dollars well, it costs less in many cases but he came to the conclusion that the cheapest car, after looking into the market, processes fabrication, alternatives, ect. He came to the conclusion that they could make a car for 2,500 dollars and still be able to make money with it and by doing so got to the Tata Nano The intention was to open with India and once the car was shown to be successful, they wanted to take it to Europe, the United States, and in Europe they made a more expensive version with more security, ect. Because European people liked the idea of a small car, with little power, that was cheap and easy to maintain So they made a more expensive version of the Tata Nano because it needed to pass the European safety regulations with airbags, ABS, control stability, ect. but for india it was the basic version and it costed just that, 2,500 dollars or around 2,500 dollars however, the car was not as successful as they thought it would be because all of the publicity was centered around “now you can buy a car” so its the car that you can finally buy, so what does that mean? if someone came around and said I´m going to make you a house you can buy and its going to cost 200,000 or 150,000 for a house, the sensation that is left behind is that you can buy a house but its a house you get with government assistance its in a far away poor neighborhood and maybe it only has 2 windows, so its a poorperson house by associating themselves with that idea that its a car for poor people, it hurt them and costed them and ended up being the reason why the Tata was not as successful as they thought it would be. But it wasn´t only Tata, and it wasn´t only Markething, and once we get back from a break I´ll tell you more. a quick thought before we go to te break The man said he was going to make it for 2,500 dollars and that is what he did, when he could have sold it for more so he stuck to that price, yes but that didn´t at least according to the analysts the price was not the reason that it failed, if you can even say that it failed. Lets go to the break. sorry about that. Hello friends if you want to buy a used or seminew car then i recommend the page Tixuz.com, its still an operation witout cost for you You´ll quickly find the car your looking for or sell your own car much faster than you thought, Tixuz.com remember Tixuz with a Z Hello friends I´m Sergio Oliveira and i wanted to invite you to look for our youtube channel Tixuz, You will like it. Very well friends we are back we will continue talking about the Tata Nano and its success or failure you were saying that he stuck to that price but even if he did that, even if the car had costed 1,000 dollars more, say 3,500 which would have still been very cheap and it would have had more things, there were two or three details which made it not be as successful, the main reason being was that, people did not want to be seen in a car meant for poor people, and buying a Tata Nano gave that image, I´m poor and that is the car I can afford, its new, but its for poor people. If they had not said it was the cheapest car in the world would it have done better? that is exactly what everyone thought, including Nissan which revived the name Datsun and the Datsun was only made in 4 countries, India, Tailand, Russia and another I cannot remember, but as it turns out that was not the reason, so the Datsun came around having learned from Tata´s supposed Error and put it out as not a car for poor people it was the best car you could buy for that amount of money, i don´t know some alternative, but it was not labeled as a car for poor people and everyone thought that their biggest mistake was the Marketing of the Tata and your basically telling them this is a car for poor people and people don´t want to be labeled as poor So the Datsun came around doing more or less the same thing just a little more expensive a car made of steel, welded instead of being glued together, because the Tata Nano the car is glued together, not welded, its industrial grade glue, which funtion very well, but it sounds weird for someone who is used to welded and screwed together cars, the stigma of it being glued together, so the Datsun comes around and it does not promise any of these things and people still said it was a car for poor people because it was too cheap, So the market labeled it as a car for poor people because of the price, because everyone knew how much a Datsun costed just as everyone knew what a Nano costed, and it wasn´t the Marketing that pushed them in that direction I thought it was the Marketing as well, but the arrival of the Datsun , which was a far bigger failure than the Tata is, It is a failure, and Nissan losses alot of money in all of the countries it is in. I just want to clear something up, its not the small shape that they have- nope- for example with the Atos they don´t sell anymore. they do, as the Grand I10. So it transformed- yes- but it doesn´t sell as an Atos, isn´t the small shape – no- nope, nope, nope, its the price. How strange. that doesn´t seem strange to me. It does to me. Because we all know how much things cost, for example, you know how much a house costs in a poor neighborhood and the same house in a rich neighborhood, its just common sense Tha place that has the really well kept lawn in more expensive than where there is garbage and its not well kept, eveyone knows that. we all know how much brand name jeans cost, and how much second hand jeans cost so people say that because of the price and not the quality? That´s right, so what do people do instead? they buy used cars, people would rather be seen in a used car which was originaly more expensive, just to give an example, lets say that the cheapest car around here was the Atos that costed 80,000 or 50,000, people would rather be seen in a used Versa that costs the same 80,000 that a new Atos would have costed, why? because its a Versa its more of a middle class car and no longer a poor person car, so that is what Datsun showed us its not something i made up, nor Datsun, nor Tata. Is that why premium brands do so well? Of couse. Because they make people think they are worth more. You hit the nail on the head, you me and everyone else pays 50% of the marketing costs for premium cars, a shirt thats says Armani could be the same as another that does not, maybe even made in the same factory but one of them has the Armani logo and the other does not and this one costs 200 dollars and the other one costs 20. I didn´t think the same thing happened with cars. It does, that happens with any product. Then how do new brands that are coming to Mexico like Hyundai and Kia that in Mexico are not well known, but on a global scale they are huge, And this happens because I´ve heard comments about kia asking what they are thats something we will cover in another show. Then we will do that, but – the topic of Kia and Hyundai being known or unknown we will cover in another episode, but its just that its all about perception, people do not want to feel poor thats why a cars for women don´t exist and that is why there isn´t a car for gay people Women don´t want to be in a car that everyone could say, oh look a woman is driving that because its only for women on the contrary, they prefer to be in the most masculine car possible they don´t want to be labeled as such, and the same goes for gay people they don´t want to be in a car designed for gay people, hey look there goes a gay person, and they don´t want to be seen that way, they might be gay and have their gay pride parade or whatever but they don´t want to be waving a flag all the time, having to defend your ideals all the time, and the same thing happens with poor people People do not want to be labeled as poor, our society is designed in a way that the person who makes the most money is succesful, a winner, he is better and nobody want to be inferior, everyone wants to be on top and making more money is about showing off i make more than my neighboor, my house is bigged, my car is better, my wife is younger, and all of those things motivate us as a society so labeling yourself as inferior is something that people don´t want and that was the problem with the Tata, and not the marketing which even i thought was the problem I wanted to ask something, and I´m going to say something crazy, the Cinquecento which is just as small which in my eyes i see as the same as a Tata, its too small, i don´t like it, but that one does sell well because its really expensive and they tell you its a special edition and that one doesn´t have any issues. It doesn´t have any issues because it really doesn´t have anything to do with it apart from the size, it starts with 7 airbags, and the Tata starts with one that you can blow up yourself, thats the Tata airbag it starts around there and your really talking about two very different things the Tata has a .3 liter motor with 33 horsepower and the Vocho had 44 when it finished, and the Cinquecento has 100 horsepower thats a huge difference, its only the same size, and Fiat labeled it as a niche car that was much more impressive and when you add those things up we´re almost out of time, but why did the Vocho do well when it was the town car? how is it that it worked with the germans and not with the Indians? there was a time when the world did not have very many vehicles, and the Vocho started to sell in 1949 and the car started to get off the ground really with Henry Ford back in the 30s, and the Vocho was invented around the end of the second world war, end of the 30s beginning of the 40s. and it started to grow from there, and we have to remember that germany was destroyed at the end of the second world war and the inflation in germany in the years between 45 and 50 was of 1 million percent it was way more than Venezuela, they printed the money on only 1 side becasue it was two expensive to print both sides and you had to take a cartload of money just to buy bread, just to buy bread you needed a cartload of money and that was germany, and Germany needed the Vocho or something like it and thats why it stuck, and once again the world was not as it is today, it was not as full of cars as it is today, and anything that came around was good, and having a car back then was a huge achievement having any car, whichever it may be labeled you as middle class and higher and now you don´t have that, there is a big difference in cars, and Mercedes was not what it is today neither was BMW, and that differentiation was something that came about due to time, and now its more noticable than ever and even brands like Mercedes are seen, by some, as a cheap brand, by people who buy Rolls Royce for example. And also back then there was not as much information these shows did not exist and people didn´t know. That´s right. Well we have to go. thank you and goodbye. If you enjoyed the video, give it a like. If you want to see more videos, click here.