Posted by: DD | January 14, 2008

Tata Nano

Finally we have it. The much talked about car has finally been unveiled and what a launch it was. I sat wondering if it really was worth the effort and will the car generate some profit after being priced so low.

I started searching a bit more about Nano and I came across this article. The review written by Mr. G V Dasarathi is exceptional. I totally agree with each and every word he wrote. A must read for every one here.

Lets compare the Queen-till-now Maruti 800 and the King-To-Be Nano

Maruti 800

Nano

Cost

  • Maruti 800: Rs 2.25 lakh (on road)
  • Nano: 1.26 Lakh (on road)

    Engine

    • Maruti 800: 800 cc
    • Nano: 623 cc (Better fuel efficiency than Maruti)

    Top Speed

    • Maruti 800: 120 kmpl
    • Nano:90 kmpl

    Tatas also claim Nano to be 21% bigger than Maruti when it comes to inner space.

    So whats the future of Nano?

    I strongly feel that Nano would be a definite hit in the ‘women’ segment. Men would love to buy a car for their wives/girl-friends etc. , giving them a high degree of locomotion and lifting dependency on men.

    Also, I find the talk about Nano not surviving an accident baseless. Nano is a strictly City Car. Not meant to be driven on highways. So even if you meet with accident in city, the impact would not be high enough to injure the person driving.

    Talking about innovation, here a few major changes from a normal Indian car on road to make it cheap. Any one planning to buy must have a look at these:

    • Has no radio, no a/c (normal model), no passenger side rear-view mirror.
    • Just one windshield wiper.
    • Engine at rear side and empty space in front to keep your luggage.
    • Tubeless tyres

    Another striking feature (which the end consumer is not concerned with) is the Distributed Manufacturing Model of Nano. Plans are to encourage entrepreneurs to have small assembly units as this would bring down the distribution cost (ship SKD) and also the dealer margin.

    But a price of Rs 1 lakh, this is really amazing. How did the board of directors gave a nod to the proposal of such a concept. Did they first research thoroughly and then gave a green signal to the project or was it the other way round. I kept wondering till now when I read an interview of Ratan Tata. Here is an excerpt from his interview which proves that pushing oneself is really necessary to get best results and in order to push we need to have some pre-defined goals set.

    “It was never meant to be a Rs1-lakh car; that happened by circumstance. I was interviewed by the [British newspaper] Financial Times at the Geneva Motor Show and I talked about this future product as a low-cost car. I was asked how much it would cost and I said about Rs1 lakh. The next day the Financial Times had a headline to the effect that the Tatas are to produce a Rs100,000 car. My immediate reaction was to issue a rebuttal, to clarify that that was not exactly what I had said. Then I thought, I did say it would be around that figure, so why don’t we just take that as a target. When I came back our people were aghast, but we had our goal.” — Ratan Tata

    !! Bang !! I see a business and social change in order !!

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