Monday, July 2, 2007

Car for "Bottom of the Pyramid" Customers!!!!!


A car for one lakh rupees. This is what many automobile companies are trying to build. Our home grown Tata Motors and the infamous Singur small car plant is supposed to be working full-time to launch the car by mid of next year. The Forbes magazine calls it the next people's car after Ford's Model T, Volkswagen’s Beetle and the British Motor Corp's Mini. Apart from Tatas the companies which have expressed their interest in building the ultra lost car includes Nissan along with Mahindra and Mahindra, Honda motors, Hero group of Munjals and Bajaj Motors. The question is what is so special in rupees1 lakh car? Accepted that pricing itself is one big selling point. I think it at this time it is worth while to remember the pioneer of low-cost cars , Henry Ford. People consider him to be a production genius who introduced the assembly line manufacturing system to the world, but marketers believe his true genius was in the fact that he calculated the price which would make a car affordable to most people in the US and working backwards he came up with a manufacturing design which we know as assembly line manufacturing. The initiative to come up with a rupees one lakh rupee car is an initiative in the same direction, at the price of one lakh the a car would become affordable to many Indians who travel in two wheelers and public transport. The appeal of the low-priced car would not be limited only to India but would be in demand in most emerging countries, China, Brazil and so on. With the car markets in the US and developed world getting saturated it is these markets which would be able provide the growth for the automobile manufactures. The Forbes article claims that the one lakh rupee car from Tata Motors would represent a victory for those who advocate making cheap goods for potential customers at the 'Bottom of the pyramid".

2 comments:

Anonymous said...


A car for one lakh rupees. This is what many automobile companies are trying to build. Our home grown Tata Motors and the infamous Singur small car plant is supposed to be working full-time to launch the car by mid of next year. The Forbes magazine calls it the next people's car after Ford's Model T, Volkswagen’s Beetle and the British Motor Corp's Mini. Apart from Tatas the companies which have expressed their interest in building the ultra lost car includes Nissan along with Mahindra and Mahindra, Honda motors, Hero group of Munjals and Bajaj Motors. The question is what is so special in rupees1 lakh car? Accepted that pricing itself is one big selling point. I think it at this time it is worth while to remember the pioneer of low-cost cars , Henry Ford. People consider him to be a production genius who introduced the assembly line manufacturing system to the world, but marketers believe his true genius was in the fact that he calculated the price which would make a car affordable to most people in the US and working backwards he came up with a manufacturing design which we know as assembly line manufacturing. The initiative to come up with a rupees one lakh rupee car is an initiative in the same direction, at the price of one lakh the a car would become affordable to many Indians who travel in two wheelers and public transport. The appeal of the low-priced car would not be limited only to India but would be in demand in most emerging countries, China, Brazil and so on. With the car markets in the US and developed world getting saturated it is these markets which would be able provide the growth for the automobile manufactures. The Forbes article claims that the one lakh rupee car from Tata Motors would represent a victory for those who advocate making cheap goods for potential customers at the 'Bottom of the pyramid".

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Nahom said...


A car for one lakh rupees. This is what many automobile companies are trying to build. Our home grown Tata Motors and the infamous Singur small car plant is supposed to be working full-time to launch the car by mid of next year. The Forbes magazine calls it the next people's car after Ford's Model T, Volkswagen’s Beetle and the British Motor Corp's Mini. Apart from Tatas the companies which have expressed their interest in building the ultra lost car includes Nissan along with Mahindra and Mahindra, Honda motors, Hero group of Munjals and Bajaj Motors. The question is what is so special in rupees1 lakh car? Accepted that pricing itself is one big selling point. I think it at this time it is worth while to remember the pioneer of low-cost cars , Henry Ford. People consider him to be a production genius who introduced the assembly line manufacturing system to the world, but marketers believe his true genius was in the fact that he calculated the price which would make a car affordable to most people in the US and working backwards he came up with a manufacturing design which we know as assembly line manufacturing. The initiative to come up with a rupees one lakh rupee car is an initiative in the same direction, at the price of one lakh the a car would become affordable to many Indians who travel in two wheelers and public transport. The appeal of the low-priced car would not be limited only to India but would be in demand in most emerging countries, China, Brazil and so on. With the car markets in the US and developed world getting saturated it is these markets which would be able provide the growth for the automobile manufactures. The Forbes article claims that the one lakh rupee car from Tata Motors would represent a victory for those who advocate making cheap goods for potential customers at the 'Bottom of the pyramid".

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