An Indian firm Tata has launched the Nano people's car, which is the cheapest car in the world, in January 2008, and the company also led to the other manufacturers revealing their plans for the cheap car market. Companies like Toyota, Fiat and Ford are also interested in the production of the cheap cars, and they had announced to invest a huge amount in India to make a new small, low cost car. The increasing competition, which has developed because of the large used car market. This has forced car suppliers to lower their prices and try to develop cheaper cars that can compete with the low cost second hand vehicles. There are environmentally led legislations, which is forcing the size and shape of cars to change, the demand and need of the customers are also the one of the reason behind this. Rationale Behind the Scene:
Tata's Nano is a result for a variety of reasons. We believe that it is going to fundamentally change the way the automobile sector functions. And here is why. •Tata Nano is not just about low-cost, but also about high technology. •We also find that the Tata Nano has fundamentally implemented the 'Forget,borrow,learn' model of innovation. •The Tatas realized that for a poor country like India, there was a need of an ultra low-cost product and they offered it by leveraging the power of technology. •The Tata Nano will certainly find big takers in India. However, it can have a market in the US, as well. If the car is enriched with high technology functions to make it an intelligent car, many in the US will look forward to own it.