Quote:
Second hand Maruti 800 over 1 lakh car...
|
Its amusing to hear comments like the above. How many of you have done an comparative analysis of the cars before rubbishing the 1 lakh car? Other than Price what exactly do you know about the cheap car? Cheap is not always synonymous with bad quality. Intel Celeron will cost almost same as Intel Centrino to manufacture but the later is light years ahead of a celeron in terms of processing power. Not a good analogy but you get the idea.
Engine: A Maruti 800 has 37 bhp engine while the Tata car is supposed to have 30 bhp - 800 is more powerful TATA when absolute numbers are considered but meaningless if we do not know the PWR of each car. 37 BHP for 1 tonne car compared to 30 bhp for 600 Kg... which has more power?
Safety: TATA cars are more safer than Maruti's any given day thanks to their R&D and dedicated crash test facilities. Why would they skimp on safety features for a 1 lakh car. Agreed it won't have ABS, air bags and other basic safety features, but design wise it should be safer than a 800 just for being a modern design compared to a 25 year old 800.
Materials: TATA has TAML from which it can source light weight materials if needed and its own steel mills to source steel. The steel from Tata Steel would not be cheap because it has the same ownership but it would be cheap because of economies of scale - It is like doubling the orders for Indica. More cars made, more steel sourced, cheaper it is to make. TATA was also going to use super glues instead of welds but they reverted back to welding due to some issues.
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.
And how much is it going to save over the Maruti 800? About 80K rupees which is not an unimaginable number considering all the cost savings mentioned above. Sounds unrealistic? Consider this, you can buy a 4 chair dining table set from Walmart (self-assemble) and it costs 100 bucks. Same set at a regular store in fully assembled form costs over 150 bucks. This is the same principle that TATA is going to use.
So skeptics, please keep the above tough to implement but not impossible cost cutting measures in mind before rubbishing cheap cars. You may find that you are laughing at no one but yourself. That TATA 1 lakh car is already undergoing track testing at tata's facilities and is almost production ready |