Ratan Tata doesn't want Tata Nano to be used as a taxi because he fears that it may dilute the image of the car. The purpose he created the car was to provide an affordable car to a person on a two wheeler and not for providing cheaper taxis.
Some days ago in Hindustan Times, someone was saying that Tata should not be unnecessarily be worried about Nano being used as a taxi and it will no harm the image of Nano. He went on to suggest that Mercedes is used as a taxi and that has not affected its image.
What the writer failed to notice was what has happened to SUVs like Tata Sumo, Toyota Qualis and Chevrolet Tavera. Tata sumo sold like hot cakes initially but ever since it was used as a taxi, very few people buy it for personal use. The three SUVs I have mentioned are not bought by people for personal use because they are used as taxis.
When you hear about a Qualis or Sumo, the picture that comes to mind is a SUV on National Highway No. 8 packed with people in their twenties being ferried to a call canter in Gurgaon. Perception is more real that reality and we Indians are very conscious about how we are seen and most Indians won't want to be driving a car which brings the word "taxi" to mind when you thing about it.
Mercedes is an established brand and it won't matter if it is used as a Taxi but Nano is a car that is yet to be launched and if the first sight of that car is a Taxi, I am sure that is what will stick inthe memory. Besided I wonder what it would do to the brand equity of Mercedes if that is used as a taxi here in India. I am sure it will make potential buyers atleast think about a BMW.
It is not just the image but also the hassle that comes with it. The chances of you being stopped by traffic police increase exponentially if you are driving in one of these as against in any other car or even another SUV like Tata Safari or Mahindra Scorpio.
