Is a $2,500 price tag for a new car a good thing or bad?
Earlier today Indian automaker Tata Motors unveiled the Nano (Apple Legal, take note), a $2,500 sub-subcompact that some call a disruptive innovation that could change the way we think about auto transportation.
The car, which Tata refers to as The People’s Car (Volkswagen Legal, take note) aims at India’s aspirational middle class, who today might be using motorized scooters to get around town.
On a Harvard Business blog, B V Krishnamurthy analyzes the pros and cons of the kookily compelling car. Krishnamurthy is the Director and Executive Vice-President of Alliance Business Academy in Bangalore, India.
On the pro side, the Nano offers affordable, safer transportation (at least compared to scooters) to a new class of workers. If it catches on in other countries, Nano could be a valuable export for India.
Negatives: Nano creates air pollution, adds to India’s already nightmarish traffic, and its safety record is unknown.
Would you buy a Nano?
Question to myself: What would the lease price be? $51 per month?
(Photo courtesy Tata)
