Tata's Nano

Extract

[...] However, this strategic decision has many risks and uncertainties. Although the demand is very strong for this kind of cheap vehicle, the Indian government is already concerned about the consequences in terms of congestion and pollution. Sustainable development is a growing concern and this could lead to Tata Motors being exposed and shamed when problems arise. Conclusion Despite all the things said about reduction in comfort and accessories, the Tata Nano is going to be the common man's favorite vehicle, partly because of [...]

[...] The Nano will pave the way for a large part of the Indian population to purchase their first car and not buy a used car, for the same price. The idea of a low-cost car may seem daring. Traditionally, vehicle manufacturers make quality, comfort and safety as their priority. However, the decision of introducing a low cost car is not surprising. For several years, low-cost concepts have appeared in many branches of the economy like air transport, travel, deep discount retailers, computer science etc. [...]

[...] However, the Nano was not produced entirely by Tata Motors. It was produced in conjunction with a network of automotive suppliers with whom the company worked closely to develop the cheapest parts possible. Tata Motors, hence, has the advantage of being the first to enter the market of ultra low-cost carriers among cars. In 2004, Renault had already started the trend toward low-cost cars by launching the Logan, which was a cheap model sedan, but much more expensive than the Tata Nano. [...]