It is great to receive some wonderful comments. Since her comments were separately sent on the mail, I am reproducing the same for the benefit of all readers. The comments are as below:-
• This is targeted for lower income bracket , more than status it’s a utility factor which will play major role
• Only focused on Young generation & Middle-middle class …could have been working women and lower middle class (which again constitutes a big percentage in India)
• It could be a stepping stone …eventually an idea got generated …and Indian market can further build up on it
• Abroad (Uk) Small cars have big share in market cars like Reva and other Renault brand are very famous …slowly this will break down the Indian market as well..more than utility its mind set which hinders Indian to reach out for diverse and adventurous ideas
• Would disagree to your comment on Maruti 800- reason being without any doubt Maruti 800 had ruled the Indian Market for good number of decades….and you could today also find people who are attached to this car.It just that consumer want/appreciate change after such long gap…every morning have a sunset same goes with Maruti 800.
And one more thing I can vouch for one thought process which I have heard from diverse group of ppl as in age and income bracket …i.e. whats the purpose of car –ensuring that all the ppl in the family can go together with decent comforts from one place to another and a vehicle which can provide some relief when its raining or when its too cold. If that car suffice this need then it would have go ahead from public.
And also am sure ample research and survey would have happened behind this launch.
I am sure these points do say that Tata's Small Car will be a success, however the extent of success may be less than the projected volumes of Tata. The company is claiming to achieve volumes of 300,00 in 1st year, 500,000 in 2nd years and 700,000 in 3rd year.
Further do we see any role of 2nd hand "B-segment" cars at the rate of Rs. 1.5 lacs to Rs. 2.5 lacs, impacting the market of Tata. Will it happen that Tata Small Car will eventually increase the sales of Maruti's products? If this price equation will be a strength or weakness in the strength of Tata Small Car (in the words of Al Ries and Jack Trout)?
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I wouldn't think that anyone would doubt the Tata small car to be a remarkable achievement for the company to manufacture a safe, efficient, 4-wheeled commuter for 4 people at a cost of around Rs 1 Lac (approx US$ 2,200).
Coming to the discussion, I'm certainly of the view that it would address:
1) Utility needs (safety & transportation) where a family (assuming 2 adults and 2 children) in India proudly travels even long distances on 'hamara-bajaj' (or any other 2-wheeler). they dont have an alternative in private transport.
2) Esteem needs where people are upgrading from a 2-wheeler to their first car/4-wheeler. No matter how cheap/inexpensive is it, a car is a car. Its different/distinct from a 2-wheeler. And I may not say of the love and fondness a person associates with his/her first car. Yuppies are just a segment of bikes/2-wheeler users; there are lot many other segments wherein the car would squarely fit. As said in one of the responses, its for the middle-middle and lower-middle classes.
Thus, in my view, the TATA small car, like many other products, would have different buyers with different sets of needs & wants.
The only trouble I see with the car is that if it were to replace, say even 20% of the 2-wheelers on Indian roads, there would be a maddening chaos on the roads. We do not have enough space to ride bikes comfortably in most cities, where would we get space for the cars????
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