Consumer Surplus
Tata's Nano: A Small Car with Large Consumer Surplus?
Ref. No.: ME0012
op y Tata’s Nano:
A Small Car with Large Consumer Surplus?
“Since, promise is a promise the standard dealer version will cost Rs 1 lakh,”1
– Ratan Tata, Chairman, Tata Sons
“We designed the Nano to offer a new form of transport to the people of India and maybe later, to the rest of the world.”2
– Ratan Tata, Chairman, Tata Sons
“…if economists are to play their part in shaping the canons of economic policy fit for a new age, they will have to build on the foundations of consumer’s surplus.” 3
No tC – J.R. Hicks, Nobel Laureate British Economist
Tata Motors, set up in 1945 to manufacture locomotives, is India’s largest automobile company.
With over 4 million of its vehicles plying in India, it not only stands out as the market leader in each segment of commercial vehicles but also takes rank among the top three passenger vehicle producers of the country. India’s first fully indigenous passenger car Indica came from its stable in 1998.
Though derided as the truck man’s idea of what is a car, Indica came up as the largest selling car in
India in segment B compact cars within 2 years of the launch. Tata Motors also earned kudos for developing India’s first indigenous mini-truck Ace in 2005. It spread its operations in the UK, South
Korea, Thailand and Spain through subsidiaries and associate companies. Its classic steadfast alliance with Italy’s Fiat and heroic acquisition of two iconic British brands Jaguar and Land Rover have served as templates for emulation. It is the fourth largest truck manufacturer and the second largest bus manufacturer in the world.4 Tata trucks, buses and cars find good foreign markets in countries
“Tata unveils Rs-1 lakh People’s Car ‘Nano’”, http://ibnlive.in.com/news/tata-unveils-rs1-lakh-peoples-car-nano/56046-7.html, January
10th 2008
2
Njoroge John,“The Nano – the World’s Cheapest
Ref. No.: ME0012
op y Tata’s Nano:
A Small Car with Large Consumer Surplus?
“Since, promise is a promise the standard dealer version will cost Rs 1 lakh,”1
– Ratan Tata, Chairman, Tata Sons
“We designed the Nano to offer a new form of transport to the people of India and maybe later, to the rest of the world.”2
– Ratan Tata, Chairman, Tata Sons
“…if economists are to play their part in shaping the canons of economic policy fit for a new age, they will have to build on the foundations of consumer’s surplus.” 3
No tC – J.R. Hicks, Nobel Laureate British Economist
Tata Motors, set up in 1945 to manufacture locomotives, is India’s largest automobile company.
With over 4 million of its vehicles plying in India, it not only stands out as the market leader in each segment of commercial vehicles but also takes rank among the top three passenger vehicle producers of the country. India’s first fully indigenous passenger car Indica came from its stable in 1998.
Though derided as the truck man’s idea of what is a car, Indica came up as the largest selling car in
India in segment B compact cars within 2 years of the launch. Tata Motors also earned kudos for developing India’s first indigenous mini-truck Ace in 2005. It spread its operations in the UK, South
Korea, Thailand and Spain through subsidiaries and associate companies. Its classic steadfast alliance with Italy’s Fiat and heroic acquisition of two iconic British brands Jaguar and Land Rover have served as templates for emulation. It is the fourth largest truck manufacturer and the second largest bus manufacturer in the world.4 Tata trucks, buses and cars find good foreign markets in countries
“Tata unveils Rs-1 lakh People’s Car ‘Nano’”, http://ibnlive.in.com/news/tata-unveils-rs1-lakh-peoples-car-nano/56046-7.html, January
10th 2008
2
Njoroge John,“The Nano – the World’s Cheapest