As and when Tata Motors’ Rs.1 lakh car comes to market, for them it’ll be technological breakthrough in terms price to consumers, while it’ll gladden the hearts of millions of prospective Indian buyers.
Initially, Tata Motors’ plan to make car that cheap was pooh-poohed by other makers as they thought it was impossible. But now as Tata Motors takes the concept from drawing board to actual production in its upcoming plant in Singur, the competition is now sitting up, clearly feeling the heat at their back.
And why not? If indeed the car rolls in the market by early 2008 as announced by the Tatas, it’ll take the massive Indian lower-middle class aspiration by storm. After all, owning a car is considered as a sure indicator of affluence, and coming to think of it, isn’t it that a one-lakh-rupee car and a ten-lakh-rupee car will occupy the same road space? That’s a great leveler.
The picture looks so juicy for carmakers that several of them are said to be lining up plans to manufacture small cars in India. Luck permitting, going by news reports, car giants of the likes of Toyota and Hyundai may feel inclined to set up shop in Bengal to make small cars.
If a one-lakh-rupee car makes you waiting on edge, there is even more in the offing. Mobile phones, that other dream thing that separates lower-middle-class have-nots from upper-middle-class haves, are set to become cheaper than Rs.1000.
While Texas Instruments have developed a ‘single-chip platform’ that can enable manufacturers like Nokia and Motorola to launch sub-Rs.1000 monochrome handsets, BSNL is rumored to have firmed up plans to sell such sets in the coming year (2007) in association with Taiwanese and Chinese manufacturers (refer ET, Kolkata, Dec 26).
Experts say if handset cost comes down below Rs.1000, then in tandem with lower call rates, India’s mobile connectivity in terms of new subscribers per month will simply explode. Currently, every month 6 million new mobile users join the list of subscribers. If handsets cost less, this figure is expected to go up to at least 8 million in the near term.
Looking at the way things are moving owing to technological marvels, average Indians may have good reason to change their age-old belief that once price goes up, it never comes down. Now, how about that?
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