Never before has there been more frenzy in the strongIndian Automobile industry/strong- and understandably so. Never before was there a car with a tag of $ 2500. TATA’s have done it !
Some one asked me whats the BIG deal about Nano- apart from the fact that its the “cheapest” car around. There are so many other models just launched by probably better established players. The answer lies in the fact that probably this will be the only launch this year- which will add to the demand in the market. The others variants have just given more options to the same set of car buyers, but the Nano- will open whole new segments in the car market.
– ET/Crisil says that Nano corresponds to a 65% increase in # of households that can afford a car
– Autorickshaws want to migrate to Nano- Is that why Bajaj motors is reacting the way it is. Will govt allow the 3 wheeler license to hold good for Nano also?
– Second hand car sales had already started slipping when TATA’s had announced that their 1 Lakh car was soon to be launched. Will this mean that you should have sold your Santro a few months ago?
– Will the biking segment(currently estimated at 50 million) upgrade themselves to Nano- if yes- this could be the growth engine for Indian Auto industry.
– And amongst all this domestic excitement, lets not forget the global footprint that TATAs TATA Motors has. The fact that NANO corresponds to all Intl safety/eco norms gives early indicators of the export-driven-growth plans at TATA Motors.
The next few months will be interesting to see how this pans out …