The Business Model of Tata Nano
In 2009, Tata Motors, the biggest carmaker in India, launched the Tata Nano with an initial market price of Rs.100,000 (approx. 1,400 Euros) which is recognized as the cheapest car in the world. It was developed driven by the vision to provide a safe and comfortable vehicle to millions of Indian families who used to ride on a single scooter - parents with their children. Many families could not afford a traditional car so Tata started producing a car which is about half the price of the cheapest car available in India. One of the strategies was to omit unnecessary parts.