Quote:
Originally Posted by Mayavi  Supply chain: TATA's 1 lakh car is not going to be sold through dedicated dealerships (that adds additional overhead) like the traditional cars. Instead it is going to be sold as a kit car, so no cars rolling off the assembly lines. The car will be assembled by the seller who sources many parts from the OEM suppliers directly instead of TATA. These OEM suppliers are going to be located in the same singur area where TATA is setting up plant. So the dealer may only get the chasis, body and engine from TATA and audio, seats etc may come from the OEM suppliers directly. This will result in huge cost savings. |
I'd be quite worried about that. Dealer ethics are more questionable than the manufacturer themselves. Though neither are saints. I can imagine the level of adulteration (for the want of a more appropriate term) possible should you give dealers a free hand, considering the margins per vehicle sold would be quite minimal on a Rs. 1 lakh car. I would rather like to pay 10k a vehicle more, and keep dealer involvement as minimal as possible.