REPORT: Secondhand Tata Nano models commanding 30% markup as India's elite grabs on to new trend
Tata Nano - Click above for high-res image gallery
The Tata Nano continues to take India by storm, and residents of the world's second most populous country appear to have gone over the deep end in an effort to secure their own personal "people's car." Australian website Drive is reporting that car buyers are paying a markup of up to 30% to purchase secondhand Nanos from the initial batch of buyers. The pent-up demand for the Nano stems in part from the fact that far more people signed up to purchase the econobox than Tata Motors has the factory capacity to build. To distribute the initial Nano allotment fairly, Tata instituted a lottery system to choose the first 100,000 customers eligible to buy the $2,500 city car.One would think that the source of this heavy demand comes from families looking to secure a still inexpensive car, but a Mumbai car salesman seems to think it has more to do with an odd "fetish" for the car. Arif Fazulbhoy reportedly told Drive that the wealthy of India are paying over sticker to get their hands on the Nano because it has become a hot and trendy status symbol, adding "They tend to be very rich people who want the Nano for the snob value because it's new in the market." The Nano model fetching the highest premium on the open market is the XL, which has features like air conditioning and central locking.
While it's too bad that the "people's car" is being picked up mainly by India's elite, at least the lower middle class is reaping the profits from the quirky little vehicle's healthy demand. There will likely be more opportunity to profit from the Nano over the next couple years as well, as the initial allotment of 100,000 units could take until the end of 2010 to get delivered – and there are over 200,000 customers waiting in the queue.
Gallery: Tata Nano
[Source: Drive]
Reader Comments (Page 1 of 1)
vf34wrx 9:26AM (9/23/2009)
Will the Nano be featured in any of the upcoming racing games? I'm guessing it'll do the 'ring in oh...an hour.
Reply
Avinash machado 9:32AM (9/23/2009)
Maybe the rich are using it as their second or third car. Or maybe a car for their butler or staff.
Reply
CH 10:01AM (9/23/2009)
A car to drive down the driveway and get their post.
notYou 10:22AM (9/23/2009)
"While it's too bad that the "people's car" is being picked up mainly by India's elite, at least the lower middle class is reaping the profits from the quirky little vehicle's healthy demand."
Ahhh Autoblog; never miss a chance to stir up a little class warfare*.
(* I am American and I realize that class distinction (re: caste history) is a wholly different affair in India than here or most other countries, but it's still endless statements like this that divide and amplify those divisions. I mean, why is it "too bad" that the "elite" are buying them? The [eventual] supply of Nano's is not a zero sum game.)
Reply
Sandok 12:29PM (9/23/2009)
As an indian (though not living in India), it is a pity because most of India's elite don't need this car. They're buying it because the Nano is the new "hip" item (yes I know, difficult to believe).
Sure the car won't ever run out of stock in the long run but India's elite doesn't need this car, far from it.
TonyInMI 10:23AM (9/23/2009)
Wish we could buy it here in the same spec. Unsafe? Safer than a motorcycle.
Reply
Rev Junkie 10:53AM (9/23/2009)
Wow, over here snobs and douchebags all over the country show off their 328is, but the Tata Nano is a status symbol. It's like saying, "hey look how rich I am, I just got a brand new Aveo!"
Reply
Dan 11:02AM (9/23/2009)
There's something with affluent people and terrible, plebian cars.
Witness the popularity of the Smart here....
Reply
bh 11:27AM (9/23/2009)
Time to plot the resale value of the Tata vs. a Jaguar or Land Rover. How many months before the Nano is worth more?
Reply
hmmwv 11:33AM (9/23/2009)
I thought upper middle class Indians will opt for at least a Hyundai.
Reply
Patrick 12:52PM (9/23/2009)
If you were a wealthy person in India, why would you want to drive around in a tiny car with no power or airbags and minimal safety equipment? I think they are buying them for their service staff as mentioned above.
The base model has no HVAC system, which is desperately needed in the Indian climate. Also, if there is no HVAC, how do you defrost the windshield? I guess you just wipe it down with a towel.
Reply
Chris 1:49PM (9/23/2009)
So, wealthy Indians are snapping up cars meant for the poor so they can be trendy for a few years? And they say Americans are greedy?
Reply
naba 2:07PM (9/23/2009)
As one of the few who have driven the car i can tell you the car is quite powerful for the indian city conditions. Its easily maneuverable and is a car u can take out to buy ur vegetables on a sunday when ur driver is on leave. The car doesnt need a power steering cos the engine is mounted on the rear...when u drive the car its surprisingly better than wht the specs will tell u...
NS 3:34PM (9/23/2009)
I'm actually quite happy with this news, considering this car gives about 56 mpg highway, vs. almost half that for other cars. Plus this thing is smaller and easier to park than bigger cars too.
Reply
theshadow 3:53PM (9/23/2009)
Waiting to see someone stick a Hayabusa engine in one of these.
That'll get the groceries home in a hurry.
Reply
P.V. 6:43PM (9/23/2009)
This is targeted to LOWER-middle class people, NOT upper-middle class people.
Also, for all of the naysayers talking about this thing being horribly unsafe, I would recommend perusing this car's European (not sure if it's EuroNCAP or some other standard) safety ratings.
Though I do second the idea about sticking a Hayabusa in this.
Reply
carazoocars0 3:49AM (10/08/2009)
This Tata Nano is truly people's car. Thanks to Ratan Tata for giving mobility to common men.
http://blog.carazoo.com/2009/09/tata-nano-has-high-resale-value.html
Reply