The launch of Tata's 1 lakh car (Tata Nano) was something that I couldn't wait to see happening. After the scores of rumours over the past couple of years on how the car would be looking like and what strategiesTata Motors would be following to cut costs, the end product seemed pretty good. My opinion about having such a low-priced car was pretty much in the middle. On the one hand there is the pollution concerns and the infrastructure getting clogged due to hundreds of thousands of cars getting added, while on the other hand is the fact that this increases the reach of cars.
A couple of days back, I happened to overhear this conversation while travelling by the local train from Rau to Indore (now, this itself needs a separate post).
Person X: Did you happen to see the 1-lakh car?
Person Y: Yeah, Tata's car.
X: Seems like a good option to go for it.
Y: Oh why so, it's only as big as an auto.
X: But, it's a car. Small, but looks very comfortable. We just need to pay some money upfront and the balance can be paid in instalments of Rs.2300-2500 over 4 years. And already there seems to be a lot of queue for booking. It's very useful for a family.
Y: The engine is in the back.
X: Yeah, and the bonnet is in the front. So your items will be under your eyes only...
This conversation happened in a train which is used mostly by the people from lower middle class and local farmers. It opened my eyes to the fact that here was a product which is enabling a whole new set of people to converse on a topic which they wouldn't have even cared to talk about a few months ago.
The competition from the likes of Bajaj, Ford and others will add fuel to the competitive fire and help improve the reach of cars to the general Indian public. I only hope that theTatas cash in on their first-mover advantage in a big way before others come in.
Read this article by Robin expressing his views against the environmentalists' opposing of Tata Nano.
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