TATA's Rs 1 lakh Car: Thumbs Up or Down

[condor]

muni : I fail to understand how an Auto rickshaw costs abt 1.4 Lakh with very much less to offer in terms of technology and quality parts. I must admit the Auto maintanance is similar to a 2 wheeler.

The Auto-Rick has been a money spinner for Bajaj. The rick does cost abt as much as the Nano. Bajaj also showcased a small car. But if they are not pricing it close to the Nano, part of the reason would be because the truth about the actual cost/price of the ubiquitous auto will be brought out into the open. Not that buyers of the rick would now go in for the mini car from Bajaj.

[.anshuman]

Now its here,everybody seems to be liking this new car,Nano is the most talked about carv today.Everybody is excited by Nano's launch,even the people who pay several times the Nano's price insurance premium for their cars.

[Sankar]

Just read in Malayala Manorama, our regional newspaper, that the Tata dealer here got 600 enquiries by prospective customers yesterday. Some had even come with the money to pay the advance and few came with ready cash to buy the vehicle. And one chap even offerred 1.5 lacs if the dealer gave the first Nano to him.

I hope the car lives up to the hype when the product is finally available to the end user.

[rapideffect]

TATA NANO is gonnabe a huge success!


Am sure that this car will make a revolution in the affordable and cheap car segment. The car is targeted to a segment which is growing and that is a huge market. This could be a huge and heavy volume market and will serve better for the Indian economy in future.

Look at this replacing the Auto rickshaws and the old PAL taxis which is very dated and almost on the verge of replacement with many taxi wallas. These taxis still exist only because most of these taxiwallas still couldn’t afford other cars/cabs which is not within their budget. This is gonnabe a huge hit with them as this could be affordable to them.

The positive impact with the car could be

1) Replacing all the existing Rickshaws and PAL / Ambassador cabs.
2) An immediate Car for the bike Walla families
3) This could be again used as a golf cart too.(with lil changes)
4) TATA motors will further gain as a premier car manufacturer in India.
5) As the volume goes up, the finance companies will benefit from the same.

Since TATA has already having tie-up with FIAT, they will ensure NANO reaching the targeted market segment across the world. This makes us realize why did TATA tied-up with FIAT. FIAT has their palio selling to most of the market, which is emerging such as Latin America- Brazil, Chile, Argentina etc. Africa- south Africa etc. Now Tata will use this tie-up and will target to reach all of these markets. Apart from the same they could reach some of the European countries too.

Targeting a segment of this sort demonstrates TATAs ambition to be a major auto manufacturer since this has the vast volume market and will go on for many years. As of today the B,C, and D levels are filled with competion and technologies where in an Indian company would take time to reach to a level to compete with all these MNC products. But getting in to a niche segment where TATA NANO is positioned TATA will definitely enjoy this monopoly for some time till competition start entering in the same league. This is the market where you can play a huge volume game.

TATAs Business game plan looks very very well planned with this NANO effect. More than a car to the masses they planned their business in such a way that which provides an exponential growth to their business. With this, Ratan TATA shows that he can make his ambitions to reality as there were critics who was quoting that a one lac car is gonnabe impossible with the competion watching TATA wether they will succeed or not. TATA Indica is an example which took the TATA motors from its losses to profit long ago.

Anyways I am thinking of Investing in TATA Motors looking forward for a 5-10 years term. What you say guys?.

[rapideffect]

Originally Posted by muni

I fail to understand how an Auto rickshaw costs abt 1.4 Lakh with very much less to offer in terms of technology and quality parts. I must admit the Auto maintanance is similar to a 2 wheeler.

I feel,Bajaj and so called Auto rikshaw manufacturers are literally making huge profits due to the lack of much competition and the demand for their vehicles.

[.anshuman]

Originally Posted by rapideffect

I feel,Bajaj and so called Auto rikshaw manufacturers are literally making huge profits due to the lack of much competition and the demand for their vehicles.

But ive heard that a CNG autorickshaw in delhi costs more than 3lakh rupees.

[Freaky_Sid!!]

The Nano is a revolution in the automotive industry, thats why it has raked up so much of a controversy....this is just the normal effect of "progress". There will always be supporters/ opposers and some in the middle who would like to stand and watch. So be it...... Takes out country forward!!!!
The Americars are sarcastically calling it "The El Nano" effect"....one article mentions that "It can seat 5 if you dont breathe" Is'nt that playing plain spoil sport!! The Nano will be a huge worldwide success and I support it wholeheartedly. Proud to be an Indian.

[snaronikar]

Thats right. What does an auto have. A few stamped components/ tubes/ tyres/ engine and a few electrical items and they are charging a whopping 1.4L for this. Incredible.

[lancer_rit]

Kudos to Tata and all the engineering team behind the Nano. It seems most people don't give much credit to the 500 engineers who did most of the legwork as well as the innovations!

I think safety on roads is something which will get a fillip with this car, since people will stop carrying their whole family on a scooter putting them to grave risk. Our masses have put little value on human life which needs to change if India is going to be a truly great nation.

Regarding the vested protests against the Nano, the protests need to be against any car/vehicle which is not meeting environmental norms, not meeting security norms and the like. Selling a lot of Nanos does not necessarily mean they will be out on the street every day. Besides, everyone has a right to his own transport - many selfish views are leading all the brouhaha - whether companies or individuals. In my view, it will force the govts in the big cities to improve mass transit - buses, trains, metros, and Indian cities will move in the same direction as other big cities in the developed world. On the other hand, semi-urban and some rural areas will benefit greatly from Nano because what choice did they have till now ?

Finally, narrow minded auto manufacturers like HM and Bajaj etc, who do nothing to innovate and improve quality and reduce price, this will force them to change - otherwise they deserve to shut down!

Regards,
Ritesh

[vkochar]

It is definetely a great step by TATA to get this dream turned into a reality.

Also giving hope to so many potential buyers of Cars who until now were not able to buy a car because of the Financial limitations.

In fact when I first saw animated pics of this 1 lac car - I was very unimpressed with it and thought it would be a JOKE.

But seeing the Nano first time on TV brought a smile and cheer on my face. The Car actually looked Good and Cute and Petite !!!

It is a lovely car I feel.

The only debatable thing will be the Chaos on the already choked roads of ours. There will be a huge demand for this car and it will sell.

Lets see till August when it actually starts hitting our roads.

[naughtyfaction]

I cannot understand how 49 people till now have voted for option 2:
" It would create chaos and we already have enough cars and we need alternate pblic transportation"

Either these people already own a car,
- in which case they are already contributing their bit to the so called chaos on the road
- they are planning to sell their car as they think that there are "already enough cars and we need alternate pblic transportation"

Or they don't own a car
- in this case I fail to understand how a car which is smallest in size and least polluting one is going to create more chaos on road than any other car. That means these people are not only against NANO but the entire car segment. So what are they doing here on this forum ?

[manish_symc]

Yes, this is very good that TATA offering such low cost cars to middle class people. I am from a small town and have seen that Transportation facility is very bad there and people who have urgency can not move because of no transportation. Also they can not effort cars of rupees 3 lakhs. 'Nano' may give them a choice to have a car.

I do not know why people are arguing on low cost cars like Nano. Someone says that traffic will increase, someone says that fuel consumption will increase. Why these people do not look at Government for infrastructure & Transportation facilities. Why these people do not look at costly cars which drink fuel like water and move only 4-5 Kms/Liter and carry only 1-2 'Beautiful' People.

[burnt.]

The effect this car is going to have is really difficult to predict. We are going into unchartered territory. This car may end up replacing the auto rickshaw in the long run, which would be a very positive effect. It may get a lot of families off their motorbikes, which is actually a positive impact also.


Whether, it adds to the chaos is something to be seen. If a small car replaces a lot of bikes on the road, I wouldn't say it adds to the chaos. And if it actually manages to replace the auto rickshaw, it will actually result in reducing the chaos on our roads to a great extend.

[esteem_lover]

Originally Posted by burnt.

The effect this car is going to have is really difficult to predict. We are going into unchartered territory. This car may end up replacing the auto rickshaw in the long run, which would be a very positive effect. It may get a lot of families off their motorbikes, which is actually a positive impact also.

I absolutely second you pal. This is what i want the Nano to do. Replace/displace the motorcycles/scooters/auto rickshaws & we certainly will have better & orderly traffic.

[raul]

Hats off to Tata marketing team. This launch has made headlines everywhere, probably the first launch of a car in India that has got so much press worldwide, and positive press. Going to do wonders for the Tata brand, because the move is coming off as innovative.