Monday, March 30, 2009
Will Nano redefine cars???
I have missed out posting during the launch of Nano , because of my traveling. But then maybe this is the right time to reflect back on the impact Nano would have on the car industry as a whole, more so in the context of the crisis that auto industry is currently undergoing. I had written earlier on how competing car manufacturers moved from denial to reactive stage in the days before the car was unveiled in the Auto Expo. This in a sense a continuation of that thought stream.
I was reflecting back on how Akai TV changed the landscape of TV industry in the late 90s when it came up with it's low-priced color TVs (in combination with a sleeve of exchange schemes). For the benefit of readers who were too young to remember the launch of Akai I will give a brief recap. Before they came, prices of color TVs use to be out of reach of most of the middle class households, at that time it use to priced around Rs 20000/- for a standard 21' TV. And I would say most of the players in the industry were happy with the situation, as it made it a premium product and they had a lot of cushion in terms of margins, but then when Akai came in it forced everyone to rethink the pricing and that comfortable cushion was removed and everyone had to start thinking afresh, from moving away from the vertical integrated model of manufacturing TVs to the procurement based model.
I foresee a similar impact of Nano on the car industry and this time the impact would not be limited to Indian industry, but the whole world itself as Nano would be launched in Europe by 2011. They would be forced to question the basic assumptions on which the industry has been operating till now and reinvent the way they have doing the business till now, and the consumer would get benefited because of all this ...