Can Tata Nano effect Indian Economy?

Submitted by Vyoma on Fri, 03/20/2009 - 21:59

My friend Deepak came across an article in Rediff and talks about the effect of release of Tata Nano.

The article mentions that Tata is putting Nano to market at the price tag of Rs 1 lakh.

Due to this, car becomes an affordable commodity to a lot more people in India than it were before. As Deepak said, it would have a lot of impact to the already congested traffic situation in most of the cities. My interest though is what effect Nano would do on the economy?

The credit crunch in US has affected India. Reason could possibly be the involvement of India in IT industry. A change in one market of a country would spread to the other markets of that country.

Since more people are able to buy a car, there is possibility of new markets opening up. Even those who are not able to do a full down payment, owing to the fact that the amount is much lesser than before, they will try to buy the car acquiring a loan. This is one of the direct impacts I can think of. This seems like a good time for investors.

Nano may be a small variable, but it would be interesting to see to what extent the wheel turns the other way due to a chain-reaction.

Comments

2009-03-21 16:0... (not verified)

Sun, 10/30/2011 - 17:35

The NANO is already overbooked. It comes with an downpayement of 70K for registration and the rest amount when you take the delivery. TATA i am sure will be opening a lot of venues for people to buy his car. E.g. provide financing options via TATA finance. Maybe TCS employees will be given a discount on the car ( so you might plan to buy one of the higher end NANO's)

Raghavendra Shenoy (not verified)

Fri, 04/10/2009 - 12:13

Bookings for the Nano have far exceeded expectations, if people from Tata Motors have to be believed. These guys undoubtedly have done a great job, and i think the Indica, Indigo and the Nano are a clear indication that folks at Tata Motors want to project the company more as an automobile engineering company, than just an automobile co. ( Does TELCO-ata Engineering and Locomotive Company Ltd, the old name ring some bells...?)A good article on the Nano launch can be found on the India Knowledge @ Wharton website. Click here to read the same.

Vyoma

Fri, 04/10/2009 - 16:45

I did not realize the plight of Tata Motors financial situation after acquisition of Jaguar Land Rover brand. Thanks for the link - it was indeed a good read.

That said, and as mentioned in the artilce, I am still keen on seeing how this turns out to economy at large, in India specifically.

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