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How did Tata Motors Made Feasible to Launch World’s Cheapest Car?
Tata Motors is a major player in the Indian automotive industry. In 2008, it launched the Tata Nano, the world’s cheapest car’. Tata judged that it would be ideal for India’s growing middle class. This report considers how successful this decision turned out to be.
The Tata Nano was conceived, designed, and marketed with a near-exclusive focus on cost reduction. As a result, the basic model sold for about half the price of the next-cheapest competitor produce.
It was received with strong initial order volumes, and awards from the automotive industry and design institutions. Over time, sales volumes were not as strong as Tata anticipated. There were signs that consumers were not making purchasing decisions purely on the basis of price. In late 2010, Tata launched a strategy to boost sales. It enhanced its financing and service offering, and began television advertisements for the first time for the Nano. It also greatly extended its distribution network. Sales improved dramatically in early 2011, although later in the year they slowed.
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