Incidentally I had also visited the budget hotel and the author is right in his speculation. Tata's though known for their patriotism have to work really hard to save their face with nano since inflation and other factors will push them hard to sustain the current declared price.
Let's hope that this does not happen and wish Ratanji good luck.
yes, very true indeed. if the nano doesn't face competition, then it's bad for the consumers. so how long will the tatas hold on to their `promise' time will tell.
Aptly said Govindaraj Ethiraj...I used to watch your programs on CNBC. The Tata's wanted a foray into lower end of the segment and they needed a bombastic foray. That came as Rs. 1 lakh car. It'll certainly be different to manage the same price 2 years later and hence the Tatas wanted to consolidate in those 2 years itself by preparing for more volumes than profits. It has always been Tata's gambit to sell more volumes first and later increase the price to turn into more profits.
Excellent article. The author has rightly justified the price of NANO keeping in mind the cost of inflation and the non-competitive market equilibrium.
RE:Tough to keep the Nano at Rs 1 lakh
by boothalingam mahathevan on Jan 22, 2008 09:41 AM
It is an excellent article.Unfortunately the govt. as well as the industrialist don't cherish competition. Until and unless competition is encouraged in all fields, India can grow faster and take care of poor people.
