Ratan Tata’s Rs1 lakh car, Nano, may have failed to impress the affluent classes but it continues to be in demand among first-time car buyers. In fact, used Nanos — which are actually almost new as they were delivered very recently — are fetching the same price in the city’s used car market as a new Nano.
Most people who wanted to buy the car but were unable to book it in the first phase are nowadays hunting for a Nano in the used car market. Dealers say that another reason for the high demand for used Nanos is the long waiting periods, and the limited allotments of the new car.
To give an idea of how high the demand for used Nanos in the city is, Niraj Patel, owner of Samrajya Auto, said that used Nanos sell almost as fast as used models of other companies. “A used Nano gets a buyer almost as quickly as a used Maruti 800,” said Patel. “We sold two LX versions of the car at Rs2.11 lakh each. This is more than their original price.”
He added that even if a seller had to sell his Nano at Rs5,000 less than the price at which he had bought it, he was not losing much if he had driven around in it for some time simply for the fun of it.
Another reason for Nano’s good show in the used car market could be its ample leg space. “The car is spacious,” said Nitin Bhatia, proprietor of Khyati Motors. “Tata Motors has kept the promise it made to customers insofar far as technology is concerned.”
Sources in the used car market said that Tata Motors is expected to increase the price of Nano after the company has delivered all the cars booked in the first phase of booking. “Currently, the company’s profits from sales of the Nano are very low,” a source said.
Nano’s biggest competitor in the used-car market is Maruti 800. “Many buyers prefer Maruti 800 simply because its efficiency and reliability are proven,” said Nayeem Tadha of Al-Yaser Motors. He added that Nano was considered a car for city roads but not for highways.
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