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분야
docxI. Contributing Factors for Nano's success
1. Road conditions in India
2. Indian consumer
II. Nano’s future prospects
1) Rising middle-class
2) Road conditions to be improved
3) The demand for mobility increases
4) Global market
2. Indian consumer
The reason why Tata Nano has been successful is that they are quick to respond to the growing needs of consumers and release innovative goods. Comparing to India's motorcycles which price level is about 0.3~0.5 lakh, the Nano is only about 1lakh which can attract the interest of the Indian consumers. Finally, the emergence of Nano had caused a great deal of fluctuation in India's car market.
Firstly, Indian consumer tends to buy a lower price car though it is not that better in safety and convenience. Therefore, the consumers are willing to buy Tata's Nano car as the price is similar to that of motorcycle.
Secondly, a change in consumer recognition and an increasing of middle class in India have contributed in shifting a potential consumer to a real consumer. Consumption was considered as a sin in the past however, this conventional wisdom has been disappearing and the middle class' spending, influenced by economic growth, has been increasing in the car market that is related to life convenience.
Thirdly, as 50% of India people is the young generation, they are conscious of other people's eyes and the design of goods. Also, common India people are fond of flowery colors. Thus, the wide array of beautiful colors that Tata offers and the innovative design can fascinate lots of India people.
II. Nano’s future prospects
1) Rising middle-class
It is expected that there is going to be an increase in the affluent middle-class due to a surge in economic growth in India. These days, the sale scale of motorcycle and tricycle are respectively about 7.4 million units, 0.4 million units. At the present rate of middle class' income progress, they are willing to pay more money to buy the cheapest car.
Moreover, Tata will launch a new Nano model in which it involves better stability and capability. Though the price of the new model is more expensive, about 0.5lakh than the original one, its performance is not inferior when compared to any other car companies. Therefore, established car consumers will modify their preference rather than buying Maruti 800 and Honda's motorcycles.
2) Road conditions to be improved
As Indian economy is developing, the social infrastructure is also expected to go along with such tendency. And improvements in infrastructure will be followed by the growing number of vehicles in India. In order to improve the social infrastructure, Indian government has intinitated and refined many programs. This will change the India to be equipped with better road condition which will gradually help cars to substitute bikes and automobile sales to increase.
3) The demand for mobility increases
As the economy grows and the industrialization accelerates, the demand for mobility increases. India is experiencing rapid economic growth, mainly driven from the service sector, such as IT. In such economic structure and circumstances, major cities in India face various mobility challenges. In India, the demand for mobility is growing to sustain its economic growth.
4) Global market
