Contemporary Business 14th Edition by Louis Boone, David Kurtz

Exercise 7

The Tiny Nano-A Potential Hit for Tata Motors When the Tata Nano, a tiny new car for sale in India for $2,500, arrived in the United States recently, it wasn't on the road; it was on display at the Cooper-Hewitt National Design Museum in New York.
"As the world's most affordable car, it is a design achievement," said a museum director.The Nano is also a safe and sturdy vehicle. More, it is a potential revolution in transportation for millions of Indian families that can't otherwise afford a car. In building its "people's car," Tata has relied on existing parts and a highly simplified design to limit costs."My particular fascination about the Nano is what I refer to as the 'Nano effect' on the rest of the world's vehicle industry," said one research director. He predicts people everywhere will ask, "If Indians can buy a four-door car for $2,500, why can't I?"Perhaps they soon can. Tata, a $63 billion Indian conglomerate, backed the Nano through legal troubles over the land needed for a manufacturing plant that delayed production for two years. The recent
recession also brought Tata its first financial losses in seven years, just when it faced heavy debts incurred when it bought the money-losing Jaguar and Land Rover brands from Ford Motor.But Tata's strategic plan is still to achieve international stature by solving the transportation problems of low-income car markets in the developing world. It will sell the Nano in Nigeria next and has already hurdled Europe's crash-safety test. In just a few years, slightly higher-priced Nanos may roam the streets of Europe and even North America.
-Do you think Tata's goal of making transportation affordable in developing countries is realistic? Why or why not?