If you are a Tata Motors watcher, the sales of Nano should worry you, right?

Well, not so fast.

The sales of Nano will not do any great magic to the sales of Tata Motors. Nor will it affect the margins. To make an impact on the books of Tata Motors, Nano has to sell AT LEAST 2 MILLION vehicles a year…maybe more.

However there are some things which Nano is doing for India. Not sure whether it is a trend or isolated incidents.

Now I know of at least 3-4 families who have bought a car for their NON EARNING still a STUDENT kid.

Is it another act of pampering? Well, no.

Given the morbid state of our public transport kids find it difficult to go to their gym, college, coaching class, dance practice – by a public transport bus. So 3-4 kids pooling in for the fuel dramatically reduces the cost per km and thus is economically justified.

In another case I know is interesting. This family has 2 daughters, and 2 cars. One for the Dad and one for the Mom. Mom’s car with driver was used to ferrying the kids to school, dance class, etc. Typically, as a safety measure there used to be a maid accompanying the daughters in all their trips.

The NANO changed all that.

The kid of a maid (all of 20 years, but looks 16!) became the driver.

She drives the Mom around for buying vegetables (better than self driving), small time shopping errands, kids go to school, dance class…..

Now 5 years from now when this guy ‘upgrades’ to a new Nano…HE has plans to gift it to the driver :-). Whether she can afford the petrol, or what will happen is not clear, but a new class of car aspirants is what Ratan Tata set out to create.

I think getting the ‘bai’ of the house to upgrade herself as a ‘within the suburb driver’ a revolution may be in the making.

Not sure if this is a trend or just one example that I know.

However students buying a car is clearly a Nano effect.