The Nano is expected to challenge not only new car but also the used-car market. Despite this, Maruti Suzuki is not at all worried as it expects a growth of 30 percent on its True Value (used car showroom).
However, it is not necessary that the Nano will influence the used-car market because every buyer sets some different criteria before selecting a car. For instance, a buyer, who is looking for a mid-size car clubbed with luxury for an affordable price, will choose a car from the respective segment.
This is one of the reasons which depicts that Nano will not affect other segment. One Lakh car is definitely a great concept but all amenities can not be accommodated in this price. So, one who wants more with low price will go for the used-car market.
Maruti Suzuki recently rolled out the ‘A-star’, which was speculated to rival the Nano but with the delay of Nano’s launch, it is enjoying its space in the market. Moreover, it’s worth mentioning that the A-star will continue to grab prominence till the commercial launch of small cars like Nano and Hyundai i20.
I dont think that the newly launched Maruti Suzuki A-Star ever was intended to compete with Nano.Was it?
Even I don’t think so that the two cars would ever be in competition. They do match each other in terms of size but talking about the price segment the two cars are poles apart. I think even the mileage is much different. so, how can they even stay in comparison.
Nano a threat to used and New cars. I don't think so. In used car market what sells the most is the sedan and other luxury class and if they are able to get more comfort with less money then al will go for it. And the excitement And I doubt the excitement Nano created during the time of launch has lost its charm!!!
Why not, after all both the cars belong to the same segment. No doubt the price difference is much high but not that high that it can’t compete with each other. I feel that both tata nano and A-Star have competitive fuel-efficiency along with technical innovations and style. Many may not find the Nano to be attractive but still it is expected to appeal many people around the world.