The Art of Designing New Market

Tata unveils Rs-1 lakh People’s Car ‘Nano’

Tata Motors’ drive to produce a cheap, no-nonsense, small car was born from close observation of a local market where millions often ferry families of four, plus baggage, on motorbikes and scooters.

Nano will have a 30-litre fuel tank and four-speed manual gearshift. The car will come with air conditioning, but will have no power steering. The car comes with front disk and rear drum brakes. The company claims mileage of 20 kmpl in city and 26 kmpl on highway.

Following are some of the pros and cons:

·         There will be a huge demand because of lower price targeted to the middle class segment.

·         It will increase the thickness of automotive arena in that segment.

·         It will induce network externality tipping the ratio from bikes to cars.

·         It will increase the oil demand and consumption as the mileage of cars is far lower compared to that of bikes.

·         It may result in congestion.

Advertisements
This entry was posted in Business. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s