Thursday, February 28, 2008

Tata's Nano - DIY Car?

Learning from Tata's Nano

The above is a very interesting article talking about distribution strategy of Tata's newest innovation, the Nano - $2500 people's car. Article essentially is talking about DIY(Do it Yourself) car making. Well, not exactly like a Lego toy! One would still need some sort of assembly-plant to bundle-up the car. Ratan Tata is adopting a dealer/agent model, something that is very common in India, specifically in financial sector such as insurance and banking. The company will have designated agents with the know-how to build Nano from boxes and sell it to customers. This will help the company penetrate into regions not accessible earlier like small towns or rural areas.

I am a bit skeptical about this approach as making car is no child's play, especially when it's a passenger car, potentially carrying up to four persons. Safety is a big concern, what if the guy forgets to install brakes for the rear wheels :) I hope that's not the case. However, I liked the concept, and can't wait to hear more on this.

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