Recently Written

March 2009

February		April
1	2	3	4	5	6	7
8	9	10	11	12	13	14
15	16	17	18	19	20	21
22	23	24	25	26	27	28
29	30	31

Add this blog to Technorati Favorites

Mar

23

Fordability and affordability

March 23, 2009 posted by indiatime |

In another hour or so, the Nano, Tata’s people’s car, the $2000 automotive wonder, opens for sale at the Taj Hotel in Mumbai. For the Tatas to pull this off is a remarkable testament to the Indian auto giant and its owner’s drive to make yet another mark on the industry that Tatas have virtually owned in India for a good part of the last hundred years. In achieving that mark, Tatas had to clear two major hurdles - Fordability and affordability.

Fordability, if one were to define it, is the ability of an industry to bring the right people to the table, use the right tols and materials, innovate and revolutionize the past ways of working, and forge new methods of producing quality goods in mass quantities. Henry Ford did just that exactly a hundred years ago, revolutionizing the modern world with his Tin Lizzie.

Affordability, if one were to define it in Nanospeak, would be the car’s Rs. 1 Lakh price tag. With the ongoing global economic meltdown, amidst the job losses and the stock market woes, for a company to manage to introduce an inexpensive new car to the first time buyers, brings hope not just to those first time buyers, but to the suppliers and vendors and all the related industries who will be hoping for a turnaround in their fortunes, pinning their big fortunes on the little Nano.

There’s no question that the little Nano has miles to go before Tatas and everyone around them can rest and sleep. There are questions that won’t be answered until the first batch of consumer feedback hits the tarmac. For Nano’s most affordable non-AC version to hit the market right at the beginning of the hot Indian summer can cool some consumers’ enthusiasm. On the other hand, many consumers might be looking at it as not their first but their second family car, still an uncommon phenomenon in India. Then there are questions of burden on India’s already inadequate infrastructure, worsening environmental consequences in the already polluted metros, and fear of additional accidents to the already incredibly rising numbers on India’s crowded roads and highways.

Still, all those things notwithstanding, today is a special day for the Tatas. Like its founder Jamsetji Tata, the pioneer of the Tata group, who was born in Navsari, Gujarat and died in Bauheim, Germany; the little Nano is now expected to travel globally, cheerlead India’s industrial prowess, and jumpstart the new century’s joyride for India’s erstwhile profit corporation. For India Inc, that nanoramic transformation from Navsari to Nanover is a justifiably proud moment, no matter what the little devil has in store for us.

Comments

11 Comments so far

Srikant on March 23, 2009 5:01 pm
Sure it is a good moment for the indian manufacturing sector. It is all a good sign for the indian economy, since this launch today couldn’t have come if the market wasn’t ready to buy. Plus the price tag is so reasonable so many consumers will probably just pay cash for it.
Manish on March 23, 2009 9:55 pm
Congratulations everybody!!!
Devender Parmar on March 23, 2009 10:36 pm
Dudeeeeeeeee! Its cheaper than a Autorickshaw! I DID NOT know that. An Autorickshaw costs ~2L, or something. Won’t be long enough before there’s some sort of a reshuffling, and we have Nanos instead of those black and yellow wagons. That’ll be awesome! People won’t say rickshaw, instead they’ll say Nano! Lolzzz!!!
Manish on March 23, 2009 11:20 pm
Davinder corolla and camary,bmw,mercedes are also called taxi somewhere else.
Challa on March 24, 2009 9:01 am
What rubbish. These robber barons have manipulated the political system for years.

They are so corrupt the government of Liberia (of all places!) refused to do business with them.

These robber barons are a disgrace in the way they have cheated India out of taxes and the way they have corrupted the system.

Never mind the fact that they use virtual slave labour with no regard for the health or wellbeing of their employees.

Do your country a favaour and boycott this scum.
Devender Parmar on March 24, 2009 2:06 pm
Didn’t quite understand the last comment.

???
John on March 24, 2009 3:30 pm
Devender it seemed pretty clear to me. Perhaps you should brush up on your English.
Devender Parmar on March 24, 2009 6:30 pm
Why won’t you girls leave me alone? I was seriously asking what he meant. If you cannot answer, then don’t. Use that brain of yours other than expressing good English skills, will you John?

@ Manish,
You serious? Those cars are called Taxis? Where?
Challa on March 24, 2009 7:05 pm
Devender, What I mean is this:

First:

India has an inadequate and regressive tax system. That is, rather than a tax system contributing to the social infrastructure for all.

We have a tax system where the middle class support the rich.

Essentially there is no equality of opportunity. There is no equality of burden.

The Tata’s reap the harvest your middle class person sows with their hard earned rupee.

Second:

The corruption in this country is both inefficient and undemocratic. It takes away opportunities from those with talent and initiative.
The corruption in this country favours the rich.

In sum: we face the burden of regressive taxation system and a corrupt system that inhibits the growth of this country.
Manish on March 24, 2009 7:43 pm
My intent is don’t demoralise those who are going to own this car first time dear devander ji, thank you. I agree with u. Have you heard about dubai.
Devender Parmar on March 24, 2009 8:49 pm
Hahaha…I didn’t mean to demoralize anybody! I compared it with a Rickshaw because I was surprised that it’s so nicely priced! Why would I be so critical about something like that?

And yes, I’ve heard about Dubai. Somewhere…

And thanks Challa!