I remember reading an article on the BusinessWeek website called "What Detroit can learn from Tata Motors". It went on to elaborate how Tata Motors had guaged what the Indian Automotive scenario needed and how the Nano was the definitive step in that direction.
Going by the $ 500 Mn that Tata Motors has raised in the booking phase, it is clear that TATA has hit the sweet spot with the Nano.
That being said, the question is Does India really need the Nano? I mean it is a great product, completely innovative et al... but given the affordability quickly suffers abuse in the hands of Indian consumers.
Picture this... The current infrastructure in the cities of Bangalore, Hyderabad, Chennai, Kolkata, Delhi and Mumbai cant take the swelling traffic that ply on the roads. Can you imagine what would happen if the Nano were to be added into this melee? I dont want to think about it.
Also, the scarier truth is the sheer number of amateur drivers who would clear a farcial driving test and zip across the streets courtesy India's new people mover.
The Nano is a phenomenal product of innovation and preseverance. Sure Ratan Tata will go down in history, but does India's Urbania need the Nano.
Fingers crossed, we haven't heard the last of the people car.