Charles Edison

"Economics, politics, and personalities are often inseparable." - Charles Edison

Monday, November 14, 2011

US finally getting the Nano

In 2008 Indian car company, Tata Motors introduced the world to the Tata Nano. Earlier this year it was finally on sale in India and later in Europe. In the coming months it will be released in the US. The significance of the Tata Nano is that it's the world cheapest car when it was first released it was just over $2000 and is now about $3000. It's about the same size as a smart car and can do about 60 mpg. The Nano would dominate the city car market. When it comes to the US it will open up jobs because of dealerships and I assume people that could never afford cars will purchase the Nano because of its tiny price tag so local business will prosper along with gas stations because more people will need gas.


Katie R said...

When people hear about new, environment friendly cars, they usually think that it will save them a ton of money. It is true that Tata Nano is a good car because it is less expensive. The question is: will this type of car please the people that buy it? Because the Tato Nano is more affordable, will the demand for these cars increase if more people prefer the Nano than other cars that are more expensive?

Alex S. said...

The demand will definitely increase demand to a wide range of people who want to save money, but I don't believe car dealers will be able to sell them at just 2-3K. The dealerships will most likely increase the price so as to not lose money, but the car will still remain cheaper than others. The increase of technology utilized on vehicles like this car will lead to a very interesting future in the automobile industry.

Smith said...

You bring up a good point about the car opening up more consumers to a market that was closed to them previously. In your post can you point out the example of inflation?