This will be surely the cheapest car in the world. Even with $2,000 it is very difficult to get a used car in good shape and TATA is giving us a brand new car with this amount. Tata Group Chief, Ratan Tata, informed his shareholders that this new car would create a revolution for the Indian people. There is no doubt that he is right about that. This will be a huge revolution not for just India but also for the whole world. A car within $2,000 is like a dream machine for millions of people who cannot afford a car right now because of much higher price.
"The styling and designing of the car have been completed and prototypes are being tested in the plant. It will be a rear engine, 4-5 seat, four-door car with about a 30 horsepower engine," it was stated in annual report for 2005-06 of TATA. So, we have got a primary idea about this car now. I must admit that I am not an automobile expert but I feel that this speciation will satisfy many consumers not just in India but all over the world. Right now, the annual market size of Indian car industry is just one million and if this car comes in 2008 then there is every possibility that the car industry in India will see a multifold growth in the next 5 years.
I have no doubt that the competitors of TATA are now worried from now about the prospect of a $2,000 (Indian Rupee 100,000) car coming in the market. South Asia is perhaps the most price sensitive market in the world. $2,000 car will surely upset the existing balance in the Indian car industry now. Well, on the other hand, I feel that the competitors do not need to be too much worried about this cheap car. This car will address a market that would never think of buying a car in the first place.
The million dollar question comes to my mind and the mind of many other people is: How good the $2,000 car will be and how is it possible to produce such a cheap car? Well, to find answer to this question we have to wait for another 2 years. If TATA wants to sell a car for Rs. 100,000 then naturally it has to limit its production cost to Rs. 70,000 or maximum Rs. 75,000. I know TATA is going for mass production and naturally when a company goes for mass production of a car then the average production cost comes down. Still, producing a car with the production cost of $1,500 is perhaps an impossible idea in our time. China has become famous for manufacturing goods at a very cheap price in the world but even China could not come up with a car with just $2,000 car.
I have nothing against TATA and I am not pessimistic about their prospect. The top people of TATA are very smart and I am sure they have something in their heart about the $2,000 car that I do not know. I wish them all the success. However, I am just concerned for one matter. TATA must ensure that their car meets up the Indian safety standards and also the car should have reasonable longevity. A car is not just for 2-3 years. If TATA can ensure these two things and can give some good after sales support then TATA will become one of the richest companies in the world very soon.
What is your idea about this car?
Related Articles
.jpg)
» Indian auto maker giant Tata to launch $2,000 car from Boing Boing
Make way for the $100 laptop of cars: Tata Group Chief Ratan Tata told shareholders that the launch of the car would create a new paradigm in low-cost personal transport, carve out a new market segment and reach a broader base of the pyramid. "The styl... [Read More]
Tracked on: June 23, 2006 12:09 PM | Permalink to Trackback