Small home Business Tips

This is blog of Dileep Jaiswal. Here Dileep shares his ideas about Small Home Bussiness

Saturday, January 12, 2008

Dream fullfilled by Ratan TATA : launching 1 lakh car for middle people.

About 20% price cut is expected in two-wheeler with launch of Tata-Nano and its another positive fall out as indicated in a survey by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) would be that bank’s loan exposure to four-wheeler industry would go up by 25% from October 2008 onwards after Nano cars runs on roads with prices of second hand cars falling by 35%.

The survey in which 250 CEO’s, having affiliations with the ASSOCHAM views were obtained on fall out of People’s Car, 80% of them felt that with launch of Tata-Nano, India has become a member of Car creation club and no longer remains as its lead manufacture.

The 200 CEO’s that those who held this view also sought that just as TATA’s sacrificed their profits element in the Chotti Car, the government should waive off 12.5% VAT on it in public interest.

A Vast majority of CEO’s also held that TATA’s have given a stiff challenge to two-wheeler manufactures, whose market size would not shrink to a large extent as result of launch of Chotti Car and thus be forced to innovate new technologies to make motorbike and scooter as a result of which, there prices are go down by 20%, to help them their market size. As regards to second hand cars sale, it is expected that it would fall by a minimum of 35%.

Releasing the survey, , over 75% CEO’s expect that banks loans for car sector would register an increase by nearly 25% as four wheelers segment is going to create immense competition since many more players have expressed their intentions to make budgeted cars for which people have been keenly waiting for.

As per ASSOCHAM estimates, currently less than 10% of total bank’s loan exposure is restricted to four wheelers segment, maximum being the construction and real estate sector which in percentage terms is measured around 26%, said Dhoot.

About 60% of respondents felt that the negative fall out of TATA-Nano car launch would be felt most by auto’s manufactures and those that encourage sales of old and prototype cars as their presence on roads would fizzle out at an accelerated pace.

Nearly 70% of respondents felt that in metros and larger towns, the current market size of budgeted car manufactures would witnessed a major reversal and TATA’s- Nano car would capture the largest market size, which can be over 50% in next 3.5 years after this car comes into the market sometimes in the month of October this year.

A good percentage of respondents, however, warned that congestion on roads would multiply which will put pressures on governments for improving the existing road networks to the extent that India would have to put up multistoried roads on lines of Japan and other economies of scale to accommodate the growth in automobile sector, said Mr. Dhoot.

this is the great dream fullfilled by ratan tata. when he see the middle people moving on scooter and bike he feel very bad. thats why he make the dream to make a new car for middle people. this TATA Nano is the result of his dream.

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