Today, when Nano is at its stage of completion, it is facing various obstacles and challenges. There are three main obstacles that Nano has to overcome. Firstly, the increased cost of production, secondly, the increased material costs, and thirdly, the high interest rates. All these obstacles have challenged the launch of Nano with the announced price tag.
Tata Motors have already overrun the cost of production, spending an amount of three billion more than the expected price. An excess of three billion will directly affect the price tag of the Nano during its launch. The company is currently not willing to comment about the launch of the car with the announced price tag.
The increased material costs have hampered the estimated cost price at the final stage and the company is paying a huge amount for raw materials to reach its product target. Even Tata is not sure how much more the company has to pay to complete his dream project.
Apart from high input costs, the company is also expected to face the obstacle of high interest rates. People who were eagerly awaiting the Nano launch are now stepping back because the rate of interest has reached almost 17-18%, something that a person with low wages cannot afford.
Tata is working hard to push the world’s cheapest car into the Indian market even with all these obstacles. The car was designed with a dream of meeting the needs of low-income families, but now the question is - will this dream be fulfilled?
Labels: small cars, Tata cars, tata nano
2 Comments:
I have been hearing a lot about the Nano's launch. Thats really true that how would Tata be able to offer at the same price which it had already announced. Its really difficult to come out with the same price tag. But there are thousands of car buyers waiting for the Nano to launch and many have also planned to go for it. IF there is an increase in the price then its really going to be tough for the Indian buyers to buy the car at a higher price. We all need to wait and see whats gonna happen only after the launch.
3. Everyone is only talking about Nano. When it is going to launch and what is the price going to be for this cheap car. There has been a huge overrun cost for Tata Motors and they are facing a lot of problems. Even when they had started the Nano’s production at Singur plant there were floods that caused the production to go slow and there Tata Motors had again made an additional invested than the actual. With all this its really difficult for Tata to launch this small car at the same price announced. Just need to wait and watch what’s gonna happen.
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