The race to build really cheap cars
The race to build really cheap cars
Edmundson B., Rowley I., Lakshman N., Welch D., Roberts D. Business Week, 23 April 2007, No. 4031 Issue: 4031, Start page: 44, No. of pages: 4
Purpose – To examine how the rush to produce smaller cars, is being driven by the emerging markets. Design/methodology/approach – Spotlights how some of the world’s major automakers are competing to produce the cheapest car; reports how Renault-Nissen has taken up the challenge presented by India’s Tata Motors which plans to launch a $2,500 dollar car next year; outlines how Tata has taken advantage of India’s cheap engineering,inexpensive parts-sourcing and low cost manufacturing to produce the car. Describes how developing countries have created a massive market for cheap cars and refers to how the car market is becoming increasingly polarized. Puts forward how other car manufacturers are jumping on the bandwagon; describes how cheap cars are in increasing demand not only in emerging economies but also in traditional markets putting pressure on western automakers who are fearful of being cut out of emerging markets and being sidelined in the west. Originality/value – Identifies some the cheap cars being produced by the world’s automakers.ISSN: 0007-7135Reference: 36AL020
Keywords: Automotive industry, Cars, Competitive strategy, Emerging markets, India, Price positioning
