Tata “Nano”: The People’s Car
The Indian company called Tata Motors manufactures the cheapest car in the world (Said, 2012). This caught the attention of the consumers in India especially those that earned an average income in the country. This four-wheeled drive vehicle replaces the motorcycle and scooters due to its safety and convenience. India's "People's Car" will be a "safe, affordable, all weather vehicle for a family which is today traveling on a two wheeler (Robinson, 2008).
Despite the herculean problems that Tata Motors encountered to launch the Nano car, the company still pursue what they had promised the consumers that awaits the cheapest car. The launch date of Nano cars was delayed but eventually still reach the triumphant success of gaining the cost competitiveness in the market.
QUESTIONS AND ANSWERS
1. What inspired Tata Motors to build the Nano? Why was there a need for an inexpensive car in India?
People’s car, as what they have introduced the new Tata “Nano” car in the country of India. The average annual income in India is around 445,520 INR (8,000 USD), according to 2012 salary survey (Averagesalarysurvey, 2013). Considering the facts mentioned above, there is a need for an inexpensive car in the country. The population was patronizing the motorcycles and scooters, as it doesn’t cost them much. The vehicles were normally used by India’s average class family and used it for travel with four passengers seated on the motorcycles. This led the founder to built a car that promotes safety when travelling compared to the motorcycles and affordability in price that most of the population can afford. So when “TaTa announced that they would build a ‘people’s car’ that would be fuel-efficient and low on emissions and would cost just ‘one lakh of rupees” (Auto India, 2009), the population of India was in
References: Averagesalarysurvey.(2013). Average Salary in India. Retrieved August 18, 2013, from http://www.averagesalarysurvey.com/article/average-salary-in-india/28162105.aspx Auto India. (2009). Tata Nano Review. Retrieved August 18, 2013, from http://www.tatanano.com/downloads/testrack_nano2.pdf Grant, R. (2010). Contemporary Strategy Analysis. West Sussex, United Kingdom. John Wiley & Sons Ltd. Muslimpopulation. (n.d.). Demographics of India. Retrieved August 21, 2013, from http://www.muslimpopulation.com/asia/India/Demographics%20of%20India.php Said, S. (2012). The Top 10 Cheapest Cars in the World. Retrieved Aug 20, 2013, from http://www.therichest.com/auto/the-top-10-cheapest-cars-in-the-world/ Robinson, S. (2008). The Worlds Cheapest Car. Retrieved August 21, 2012, from http://www.time.com/time/magazine/article/0,9171,1702264,00.html Tatanano. (2013). The Nano Story. Retrieved August 18, 2013, from http://www.tatanano.com/technical-specifications.html