Tata is optimistic about their Rs. 1 Lakh Car
Tata Motors is currently developing their ambitious Rs. 1 lakh car targeted at the masses of India. The project is the brainchild of their mentor Ratan Tata and the company is aiming at a launch time of 2008. The company believes that this car would have a lot of potential for them in the Indian market, as it would be pretty relevant to the India’s rapidly growing middle class.
Ratan Tata in fact said this in an interview with McKinsey Quarterly: “If you could position an all-weather car that was not a glorified scooter or a stripped down car, then I believe there would be a market potential for one million cars a year.” And the company is looking at innovative ways to market and sell the car.
Instead of relying in regular dealerships, Tata aims to establish small satellite units, with low breakeven points, where some cars could be assembled, sold, and serviced. They also are likely to encourage local entrepreneurs to invest in these units and train them to assemble the fully knocked down or semi-knocked down components sent to them.
And this assembly and retail units would also be handling the servicing aspect of these low cost cars. Tata is also looking at keeping the costing of the components in the car low by using more plastics for the body, replacing welding technology with modern-day adhesives and low-cost assembly.