Monday, March 23, 2009

From Three Wheeler to Tata Nano


Tata Motors, a part of a fledgling Indian Tata Group announced today that they will make available for purchase next month throughout India, their ground breaking and revolutionary vehicle called Tata Nano. Tata Nano is approximately 3 m (10 feet) long and quite a charm to behold. As I listened to a BBC reporter this morning, I could not help myself think that my village could use this new mode of transportation. On the other hand, I thought of the pot holes that define a road leading to my village and was saddened by the fact that a car of this size might be buried alive in one of those pot holes. May be the first step is to repair or build a better road to benefit from this “milestone” technology.

What is more impressive about the Tata Nano is its affordability. It will go on the market to millions of Indians at $1, 979. Indeed, it is the world’s cheapest car yet. Tata Nano has inevitably put India once again on the world map. Nano comes at a time when the three big ones in the US (GMC, Chrysler and to a lesser extent Ford) have been taking their begging bowls to Capitol Hill for alms from Congress. Worldwide, the car industry is reeling from slumping demand, but not so for the Nano. Mr. Ratan Tata, owner of Tata Group is no stranger to going against currency. He takes calculated risks and in the past, he has been rewarded handsomely. I see no difference with their new product, the Tata Nano.

When others are worried about potential carbon increase due to fossil fuel, for millions of Indians who have been stuck with three wheelers or motorcycles, it’s a far cry to deny them the same technology that has been available elsewhere for so long. I agree that the environment matters, but any consideration should be done with other things on the table. Why can’t we develop technologies in tandem that both achieve modernization and at the same time protect the environment?
Tata Nano is not without competition, this is what a few had to say; “I should thank you, this is really fantastic. This is what we should try and achieve. We must acknowledge the great work done by you. However, we will compete with you.” Carlos Ghosn, CEO of RENAULT-NISSAN. “ I congratulate you for three things; (i) a modern and contemporary car design, (ii) sufficient internal volume, (iii)designed and developed entirely on your own” Luca Cordero diMontezemolo, Chairman, FIAT. Tata Nano won the Wall Street Journal Technology Innovation Award in 2008 in the transportation category for a ground breaking innovation that demonstrates measurable impact. What are your thoughts about Tata Nano?

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