The paper "Importance of Innovative Ideas in Tata Motors " is a great example of a management case study. One of the advantages of technological advancements is that it has improved the living standards of people. Different manufacturing companies do manufacture products that our high-quality products and continual innovations in these companies, with the existing quests for new discoveries, make the man a very comfortable animal in existence (Humes, 2007). The transport sector is one of the sectors where advancements of knowledge have been enhanced. Upon the wake of the period when many customers could not manage the expenses that are attached to expensive cars, the Tata Motors came up with a new model of car, Nano, which was projected to revolutionize the auto industry. The projections and the retail costs of Nano car were designed to be inexpensive so as to come to the aid of the million customers who had been locked out of the car market, both in India and in the world market.
This was the sole inspiration of Tata Motors to build Nano. One of the characteristics of emerging and existing markets is that they contain potential customers at different levels of consumptions.
Customers with high consumption index are placed high on the consumption pyramid, and customers of low consumption index are placed at the bottom of the pyramid (Hanson et. al, 2008). Conversely, the latter customers are the majority, and Tata Motors’ emergence with the production of small cars in the global auto market scene has created the expected attention in the world. It gives millions of people a chance to drive cars and also to manage cheaper means of transport. By that time, 2007, India presented a nation where there were as few as ten cars for thousands of people, particularly when compared to china and U. S.
which had 40 for thousand people and four hundred and fifty cars for one thousand people respectively. This was the case where only the very rich people could manage to easily transport themselves and their families. With the emergence of the Nano car, its price tag would make it very appealing to many Indians who at the time were driving on motorcycles and scooters. The realization of the transport menace in India was the first step in the need to design Nano by Tata Motors according to Ratan Tata.
The need for a safe, affordable and the all-weather form of transport for family and the public majority was very eminent. A period of four years was all the Tata Motors designers and engineers needed to come up with Nano which enable the realization of this goal. People’ s perception of the car and the motivation to design a fairly cheaper, quality and yet very economical in fuel consumption was another huge step towards building Nano.
A country with average household income per capita of between $6,000 and $3,000 would comfortably have many people own cars of roughly $2,500 in terms of cost. It worked four years later as eight million Indians now own cars according to the Mumbai based credit rating agency Crisil. With the advancing technology in the automobile industries, it is very unfair and very untrue to associate low price with poor quality. Depending on the nature of products, except for goods and services of ostentations, customer demands and the technical applications on a product is what determines its price.
Nano was design to arrest the transport problem in India and according to the Tata Motors managing director Ravi Kant; this would go beyond class and economics since it would serve both in rural and urban places as well. Therefore low price does not automatically means poor quality considering the type of a car Nano is to Indians.