FobzyWhat do a Ferrari and TataNano have in common?
January 18th 2010 06:25
Sounds like a trick question, doesn't it?
Well to tell you the truth, there's more than a rumour going around in informed circles that there really is a common link, and what is it inspired by? Well, GREED, wouldn't you just know.
Apparently, they both command a premium, and yes, even that el cheapo little number.
The demand for the Nano, which costs an estimated $2,500 (depending upon the exchange of the rupee) is due to simple supply and demand .
When the Indian Government introduced the car they had a lottery system for the first 100,000 cars, in Mumbai.
“They tend to be very rich people who want the Nano for the snob value because it’s new in the market.”
The 30 percent market premium for the Tata Nano, by the way, is slightly more than $800 — about six months of wages for the average Indian worker.
Hence those wanting one are prepared to pay a premium, just like those wanting a Ferrari, but I think I'll stay with the Rolls, myself, for the time being anyway.
If the farm comes upon hard times we may just be looking around for a little Nano, wonder how they perform in the snow?
| 33 |
| Vote |
subscribe to this blog
Comment by Anonymous
Indian Government is not in the business of making Cars.
This car TATA Nano is being made by a company called TATA MOTORS which also owns Jaguar and Landrover of the UK.
I can understand that not everyone knows about the happenings on the other side of the planet, but public publications have to state facts which could be verified.
Also check your $800 figure. It is approximately the per capita income of India.
thanks