Tata, Renault’s small cars may not be that cheap

Ultra low-cost cars - be it Tata’s Rs one lakh project or Renault’s $3,000 venture - may have caught the imagination of many, but customers may end up paying much more than they think they would.

While ever-increasing input costs are putting tremendous pressure on Tata Motors to keep its word on pricing, French carmaker Renault’s ability to maintain the price at its stated range would largely depend on which Indian partner it chooses.

Vendors for the Tata Motors venture said on the condition of anonymity their agreement for the Rs one lakh car has a lot at stake unless committed volumes fructify. This is because the margins for supplying components for this small car were far too low compared to industry standards.
More
Courtesy:economictimes.indiatimes.com

This entry was posted on Sunday, July 29th, 2007 at 12:41 am and is filed under Tata Motors, Renault. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.