Indian car maker, Tata, spent millions of dollars and employed countless design-hours to come up with the cheapest car possible -- the Tata Nano. At $2,600, this little car is an affordable ride for the growing populationif "call center" employees that are making up a new "middle class" of India.
But, much as we do here in the states, the Indians buying Nanos can't help themselves. According to Bloomberg and The New York Times, "... only 20 percent of Tata's initial 203,000 orders for the car — the Nano — were for the no-frills $2,600 model. Instead, customers booked models at the higher end some costing as much as 40 percent more, or about $3,680. The higher prices mean bigger margins for Tata and less chance of a profit-sapping price war with rival carmakers like Maruti Suzuki India, analysts said."
But, much as we do here in the states, the Indians buying Nanos can't help themselves. According to Bloomberg and The New York Times, "... only 20 percent of Tata's initial 203,000 orders for the car — the Nano — were for the no-frills $2,600 model. Instead, customers booked models at the higher end some costing as much as 40 percent more, or about $3,680. The higher prices mean bigger margins for Tata and less chance of a profit-sapping price war with rival carmakers like Maruti Suzuki India, analysts said."
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