(Credit:
Hem.com)
Europe loves the VW Beetle, the Renault Twingo, and the Smart. The U.S. has the Mini and will finally get the Smart, too. And recently India proudly presented the spiritual successor to all of these--the $2,500 Tata Nano, a "people's car" that is widely gushed about, not only for its surprisingly slick design but also for its innovations.
In recent years, ecoconcerns, design savvy, and an (urban) willingness to quest for practicality have fostered the trend toward specialized cars that are as small as the niches they serve. While the idea of a small car is not new, in the case of the Nano, and that's an interesting addendum, the miniaturization of the product goes along with a miniaturization of price, development process, and distribution model. The Nano is the world's new "cheapest car," it was developed and designed by an off-site micro-organization, and it operates with a decentralized distribution model that allows the suppliers who assemble the car to also sell and service it directly to the consumers. What you can learn from Tata: shrink the product, shrink the feature list (no frills!), shrink the development team (no red tape!), shrink the price (ultra low cost!), and shrink (localize!) assembly and distribution. Think small, score big.
In fact, nano is the new big. Language is always a good indicator of cultural shifts. There is talk of the "Nano-effect," of "nano-sphere," and the magazine Nanowerk observes that, "Over the course of the last 12 months, the LexisNexis database of newspaper articles records 239 stories referring to nanotechnology in the British press. In the same period there have been 239 stories referring to 'iPod' and 'nano'."
India's Economic Times even proclaims the "coming Nano Age:"
"Small is getting a big play. Part of the push is coming from companies eager to stuff cell phones with value add-ons and another is about demonstrating technology that is smart, simple, small and beautiful. (...)Nanotech products or small, nifty gadgets may not be cheap, as the emphasis is not on price cutting but efficiency at a small scale. Though it remains to be seen whether, the Tata Nano, a nanotech medical device or a pocket printer, will set the cash counters ringing."
The Tata Nano, burning in effigy.
(Credit: Strdel/AFP/Getty Images))Tata Motors is billing its tiny, ultracheap Nano as the "people's car," but some people would just as soon not see it get built--at least under current conditions.
The Tata Nano made an outsized splash at its debut Thursday as the world's automotive press disseminated details and photos of the $2,500 car, which the giant company ($7.2 billion in revenue for its most recent fiscal year) said it designed to give Indian families an alternative to overcrowded scooters and to "set a new benchmark among small cars." The Nano is roughly half as expensive as the next lowest-priced car on sale in India.
But while the bright lights of the New Delhi Auto Expo were trained on Tata's minicar, activists near Kolkata were burning the car in effigy. The Trinamool Congress, a West Bengal opposition group, torched a mockup of the Nano in protest over land rights at the factory location. "Until farmers get back their land forcibly acquired for the Tata Motors small car plant at Singur, we will not allow the company to manufacture cars there," opposition leader Partha Chatterjee decreed, according to The Economic Times of India.
In New Delhi, a small group of protesters made a less dramatic showing, but their T-shirt slogans were bold, The Times of India reported: "The ($2,500) car has Singur people's blood on it."
Pundits in the Indian media, meanwhile, debated whether the Nano offers more in the way of marketing hype than real consumer value.
Tata Motors makes cars, trucks, and buses for both the domestic market and for export, and has tie-ups with Italy's Fiat and Korea's Daewoo.
Ford confirmed Thursday that the company is considering an offer to sell its Jaguar and Land Rover subsidiaries to Tata Motors of India.
"Ford is committed to focused negotiations at a more detailed level with Tata Motors concerning the potential sale of the combined Jaguar-Land Rover business," Lewis Booth, an executive vice president at Ford, said in a statement.
"There is still a considerable amount of work to do, and while no final decision has been made, we will proceed with further substantive discussions with Tata Motors over the forthcoming weeks with a view to securing an agreement that is in the best interests of all parties concerned," said Booth, who oversees Ford's Premier Automotive Group businesses and is also the chairman of Jaguar, Land Rover, Volvo, and Ford of Europe.
"We can confirm that we have had positive discussions so far with Ford, concerning the possible purchase of Jaguar (and) Land Rover, and we are now entering a period of more focused and detailed negotiations with Ford," a Tata Motors representative said in an e-mailed statement. "We hope both parties can reach an agreement in the forthcoming weeks, though these are complex discussions, and there is still much work that needs to be done before that position is reached."
"We are pleased by the progress in the discussions to date and very positive about the prospects of this business, going forward," the Tata representative said.
Reports have put the deal at between $1.5 billion and $2 billion dollars, though neither Ford nor Tata has not confirmed any number.
Land Rover's Range Rover Sport
(Credit: Land Rover USA)Tata, which claims to be the largest automaker in India, posted revenue of $7.2 billion in its 2006-2007 financial report.
The company is part of the Tata Group, one of India's largest conglomerates. Founded by Jamsetji Tata in the mid-1800s, the Tata Group companies, which include Tata Steel, Tata Tea, and Indian Hotels, among others, employ about 290,000 people worldwide.
The Tata Group stated 2006-2007 revenue to be $28.8 billion, roughly 3.2 percent of India's GDP, according to company statistics.
- prev
- 1
- next
