Big NANO

Last week NANO booking closed with humongous number of applications (close to 0.2 million bookings as per official  report). Confusion over the booking procedure, unavailability of test drives and uncertainty over delivery schedules did not stop buyers from booking the car. So what's so special about NANO? A. its from the trusted powerhouse of the country and B. its unbelievable price tag. When economic times are good, you may be inclined to shop with little regard for price. But when conditions turn bad, as they have, it’s another story. 

What is more astonishing is the fact that other OEMs are still not taking any inference from this. Commodities are at rock bottom prices but that has not prompted the OEMs to slash prices. If there is such a crazy demand for NANO or for its price tag then instead of complaining about the downturn in the economy and sluggishness in the demand, OEMs should take some pro-active measures. People generally don't have time for big honchos of OEMs who are always helpless or complaining. They will just go ahead and book NANO.

The only justification for a high-priced model is self-image and the illusion of prosperity. The value of these qualities is overrated. NANO is therefore a refreshing way to look at the recession. Kudos to Mr TATA.

Something for my regular readers, “The stock market depends about as much on technical analysts as the weather does on weather forecasters.” Just be careful with 'May 09' series.