The cheapest ever car, Tata Nano has been made possible through sheer innovation, technological upgrades and the willingness to make the dream project of making a car by the people and for the people. With basic essential features and an engine made of aluminum, the cost of the car is reduced to a great extent to make it affordable for the company to fulfill a promise to the masses.
I will review the Nano car like this: Its features not only helped in cost reduction but also enabled higher fuel efficiency while complying with the pollution standards which is commendable. A review of the Nano car also shed light on some important, yet cannot-ignore facts. For instance, the basic version of the car comes with no air-conditioning system and there is also no option for a radio system and the bumpers are not welded they are just bonded to body; these simply imply reduced fabrication and manufacturing costs.
Additionally, most parts of Tata Nano are being manufactured by different vendors including Bosch, Delphi, Caparo and many more who in their turn are trying to reduce costs through constant innovation, research and development. However, apart from all these, the real advantage of Tata's is its development cost, that is the cheap and skilled labor including a whopping 150-member engineers with reduced infrastructure cost of setting up its plants for manufacturing the same. In fact, the entire car is indigenously developed including the engine simply because assembling an imported engine did not work out with respect to economics. The entire cost per unit inside the factory is around Rs. 65,000.
If you ask me what are the other innovations that made this dream car possible? Let me tell you, several reviews of Tata Nano reveal that in order to keep a check on the production cost, the company has designed and manufactured similar mechanisms and handle for both sides of the door; the left and the right, the rear-mounted engine developed indigenously, seats come as single mold rather than separate pieces, the instrument cluster is not fitted in front of the driver but in the middle, implying that the same dashboard can be used for a left-hand drive. It is but for the futuristic innovation and continuous re-look of the design and engineering methods that have made a dream of making car for as low as $2500.
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