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What do you think is the driving force behind TATA’s launching low priced car?
Do u really consider it to be people’s car?
Discuss the changes in manufacturing strategy that the TATA’s are working on and how will this changed strategy help in lowing the cost of the car?
What kind of market structure is TATA facing, specifically in this 1 lakh car segment? If you think there is any competition name them.
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5 Users Response In " What do you think is the driving force behind TATA’s launching low priced car? "
That car will be launched in late 2011 so u dont know what will be the situation.
IT IS A ACT OF DESPERATION BY A THIRD WORLD COMPANY
Standardization is best way to make cars cheaper. Many fall into trap of trying to make cars with special parts to make money on spare-parts. Tatas have a name in market and it would do well to cut-back on gizmoe’s in the cars. Take an example of cars made in 50′s and 60′s when cars were like bicycles… a means of transportation and not a living room. They may also want to introduce version that has only one bench seat instead of trying to create vehicle for six people. Purchasing plays a big role in cost control. They may want to introduce open and transparent bidding process to avoid corruption in purchasing like as it is today.
In all fairness, this is a truly visionary project. The same japanese and european OEs who initally commented that it was practically impossible to deliver a “passenger car” for about 2000$ have now started taking notice of what TML is doing.
In terms of manufacturing strategy – the possibility of the 1-lakh cars final assemlby being done at the dealer point, is truly pathbreaking. Whether this will prove succesful from a cost and quality perspective – we will need to wait and watch.
What Tata is doing is creating a whole new segment ( like it Did with the ACE ) and getting the first mover advantage. To a certain extent this car will lure some two wheeler customers purely on the merit of its price & the Tata brand value.
Rahul Baja’s comment that BAL could possible look at a low cost four wheeler is indicative of this possibilty. Carlos Goshn and his engineering team (from Nisssan to be more specific) have met with Bajaj’s top brass and a low cost passenger car is right on top of the agenda as far as this partnership is concerned
MUL could spring a surprise and drop the price of its 800 / omni models as there are possible at the end of their lifecycle. There are both tried and tested models in our market and a lower price tag could make these more attractive than a 1 or 1.25 lakh new entitiy.
Isn’t TATA going the make the compressed air car?
That will be really cool.
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