Remember the day when the Tata Nano was unveiled? The pomp and show was great when the world’s cheapest car was launched in India. But, will the Nano carry the Rs 1,00,000 tag through its lifespan, or, will it hike its price? Times are getting tougher for the creators of the wonderful car, and so, the price too may have to get a little tough.
The Nano’s parent group, Tata and its chairman Ratan Tata have been struggling to cope up with the current Indian economy. With the increase in costs of raw materials and labour, and the new higher taxes, the manufacturing costs too are rising. Post budget, steel has seen an average rise in price of 25 per cent. The prices of copper, aluminum, plastics and rubber are increasing by the day and Tata finds it difficult to maintain the low price of the Nano.
Will the People’s Car remain as such in the coming years? Working middle-class Indians just switched over from two to four wheels. Blame the slight sophistication in the lifestyle on the Nano. The price did it all. But, what do you think will happen now? What if the Nano comes with a slightly hefty price? Will Ratan Tata’s dream project still be a success? Many car makers have already increased their prices. Will Tata be able to manage the heavier price?
Over 26,500 Nanos have already been sold, and as promised, the first 1,00,000 cars will be sold at Rs 1,00,000 regardless of the high manufacturing costs. Now that’s a gentleman’s promise from Tata. Wondering what is going to happen later? Well, the basic model of the small car may see a Rs 30,000 hike and the high-end version, the price of the Nano LX may increase to Rs 2,00,000. Currently, the Nano LX is priced at Rs 1,72,360-1,85,375. The increase in prices will probably be seen towards the end of this year, once the second round of bookings begins.
Tata, however, has remained tight-lipped about the prices. It was unsure of the future price. It confessed, though, that the rising manufacturing costs were making it difficult to sell the car at a low cost. The Nano has already sparked the fire and many other car makers are coming up with ultra-low-cost cars. The competition is getting tenser. Ford, Honda, Toyota, and Renault and Nissan along with Bajaj Auto all plan to make small cars in the next two years.
India’s population is huge. But, only 8 per 1,000 people in India own cars as compared to Germany and France with 550 and 495 per 1,000 people respectively. Even after the increase in prices, the Nano is likely to remain cheaper than its rivals. The Nano stands a better chance of increasing the number of Indian car buyers. Demand for cars in rural parts of India is increasing because of Nano’s low price.
The eco-friendly Nano looks great. The toy-like cuddly car delivers a safe feeling. Tata has bigger plans. It wants to sell the Nano in the U.S. However, that would happen only after the car is redesigned with a larger engine and greater safety features. So, that is going to take some time. Last year, a European version of the Nano with airbags and leather trim, with more stringent safety and emissions standards was unveiled by Tata. Way to go Nano!
The Nano’s parent group, Tata and its chairman Ratan Tata have been struggling to cope up with the current Indian economy. With the increase in costs of raw materials and labour, and the new higher taxes, the manufacturing costs too are rising. Post budget, steel has seen an average rise in price of 25 per cent. The prices of copper, aluminum, plastics and rubber are increasing by the day and Tata finds it difficult to maintain the low price of the Nano.
Will the People’s Car remain as such in the coming years? Working middle-class Indians just switched over from two to four wheels. Blame the slight sophistication in the lifestyle on the Nano. The price did it all. But, what do you think will happen now? What if the Nano comes with a slightly hefty price? Will Ratan Tata’s dream project still be a success? Many car makers have already increased their prices. Will Tata be able to manage the heavier price?
Over 26,500 Nanos have already been sold, and as promised, the first 1,00,000 cars will be sold at Rs 1,00,000 regardless of the high manufacturing costs. Now that’s a gentleman’s promise from Tata. Wondering what is going to happen later? Well, the basic model of the small car may see a Rs 30,000 hike and the high-end version, the price of the Nano LX may increase to Rs 2,00,000. Currently, the Nano LX is priced at Rs 1,72,360-1,85,375. The increase in prices will probably be seen towards the end of this year, once the second round of bookings begins.
Tata, however, has remained tight-lipped about the prices. It was unsure of the future price. It confessed, though, that the rising manufacturing costs were making it difficult to sell the car at a low cost. The Nano has already sparked the fire and many other car makers are coming up with ultra-low-cost cars. The competition is getting tenser. Ford, Honda, Toyota, and Renault and Nissan along with Bajaj Auto all plan to make small cars in the next two years.
India’s population is huge. But, only 8 per 1,000 people in India own cars as compared to Germany and France with 550 and 495 per 1,000 people respectively. Even after the increase in prices, the Nano is likely to remain cheaper than its rivals. The Nano stands a better chance of increasing the number of Indian car buyers. Demand for cars in rural parts of India is increasing because of Nano’s low price.
The eco-friendly Nano looks great. The toy-like cuddly car delivers a safe feeling. Tata has bigger plans. It wants to sell the Nano in the U.S. However, that would happen only after the car is redesigned with a larger engine and greater safety features. So, that is going to take some time. Last year, a European version of the Nano with airbags and leather trim, with more stringent safety and emissions standards was unveiled by Tata. Way to go Nano!
posted by admin @ Thursday, March 18th, 2010 8 Comments » link to this post
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According to Bloomberg, Porsche has recorded nearly 900 potential buyers for the 918 Spyder. Wolfgang Duerheimer, development chief for Porsche, said in an interview, “I’m confident that we will soon reach the threshold of 1,000,” he said in an April 24 interview. “We need 1,000 seriously interested people to make a sound business case.”
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