11 January 2008

A promise is a Promise ... TATA NANO!

The Tata’s deliver .. yet again .

some are saying that the whole idea is as innovative as the Ford’s T-line itself.
Ratan Tata unveiled the Nano! With these memorable words “The production costs have spiraled up ,in past few years , but a promise is a promise “ !
That’s what I call leadership.Despite the opposition he is said to have received from all quarters .. the tata’s have pushed on and have kept their promise. Many people have said that producing a lakh rupee car ..( 2500 $ !! ) is impossible and they are the ones who are queing up to congratulate now. Ratan Tata traveled into the realms where the angels feared to tread.

Though its revolutionary , we should wait for the initial euphoria to die down and see how the markets accept the car and how the automobile dynamics are altered by this.
I expect it to be an instant hit among the developing nations esp the south asian tiger economies and of course BRIC countries. Since the design is cute and the emissions conform to the world standards it could garner strength among the developed countries too .. including the eastern Europe … This could start a clamor among the automobile companies to deliver a competitively priced car. This can also alter radically the dynamics of the second hand car segment .. as a similar priced car is available now.

Yet, there are few problems with the car as it obviously lacks the power (623 CC engine ) ….hence it might not be a hit with the young crowds .. and the leg room problem and also the lack of AC and push back seats and other things put together will obviously dissuade the upper middle class from buying it … hence it might not draw away the customers from the small car segment too… rather it will create a new segment all together of people who would not have bought a car otherwise. Yet it can derive its profits from the sales volumes.. which can be radically higher .. not only in India but other countries too.

And I think they should target the rural segments too instead of only urban segments .. an aggressive marketing in the rural areas could notch up the sales in India .

Another problem I had was that of the incessant traffic on the Indian roads.. already the roads of the Indian metropolis are choking with jams round the clock. The addition of such cars will make the condition only worse as it opened the flood gates to the people who would otherwise use the public transport. Of exactly how the markets would behave towards this recent development – only time will tell!

Nevertheless its worth a thundering applause!!

1 comment:

Multisubj Yb TruthSeeker said...

I wished that he spent his energies and resources on designing a good solar car, even if it seats only two instead of 5. We have unlimited sunshine every summer.

Anyway he cannot hold on the price line for more than one year. He may have billions. AFter all, he is a shrewd businessman.