Monday, March 23, 2009

Tata Nano launch today - March 23, 2009

I was reading this news, and also discussed in Twitter by certain people whom I am following... Tata Nano Launch, buyers to pay full amount on booking . Never in the world for any car, people have paid full amount to book, except Tata group. Earlier they did it with Tata Indica launch in 1998.

Definitely this is a middle class family car!

It is going to be an easy upgrade for the upper side of the bike owners.

The current bike sales in India is about 19 lakh units per year says, with values ranging from Rs 35,000/- to Rs 1.5 lakhs.

So the upper end guys, upto 20% of current new bike owners, would look for a car at home! That too at the same cost.

Let us look at economics of wondering to own a car. The insurance and maintenance would be double than a bike. A family of 4 can travel at per kilometer rate of about Rs 4/- within city. Calculate at 20 kms per liter of petrol at Rs 45 and maintenance at about Rs 15,000/- for the whole year..... with a run of about 50 kms per day.

50 x 365 = 18250 kms, costing petrol of (45 * 18250/20) Rs 41,000/-. Insurance at about Rs 3600/- So in all about Rs 60,000/- for 18250 kms. That is about Rs 4/km with misc. exp.

That is double the cost of running a bike, and managing family in bus/auto.

They are expecting a 3 lakh car booking. First 50,000 cars to be sold in next 12 months. Particularly, BJP in Gujarat will show case it well, as the Sanand plant is going to come there.

Obviously some one, would come in with a black market plan to offer at a premium, if they win the lottery of allotment.

My best guess is, the fizz would run out, after one year and it would be normal delivery.

So I will wait!

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