Proof that good things come in small packages. If South Asia’s burgeoning micro-financing and micro-everything approach in business is any indication, a new business model will probably emerge and be adopted by large companies in pursuit of the large middle-to-lower consumers. It’s where the profits are. Companies like Unilever know that this is secret to growing their consumer base in emerging countries with large populations.
During the Asian Crisis in late 1990s, Unilever started paying more attention to supersmall packaging, putting everything from dish detergent to shampoo in small single-use sachets, which were sold at street-side stalls. That approach proved to work. And work well it did.
The TATA NANO (the world’s most inexpensive car), and other similar small vehicles from other automakers may take the above business model into the car market. Among them, Nissan is poised to compete head on with Tata Nano, with Nissan Nuvu, priced slightly higher, at around $3,000, and slated to make its debut some time in 2011.
The following pictures are of the electric-powered Nissan Nuvu from the Paris Motor Show, the one aimed for India will be loosely based on this model, albeit paired down. Nissan will build it in collaboration with India’s Bajaj Auto Ltd.
Nissan’s upcoming $3,000 Tata Nano rival for the Indian market is expected to increase the company’s profitability as it takes advantage’s of its local partner’s, Bajaj Auto Ltd., low-cost production techniques.
Gilles Normand, Nissan’s corporate vice president in charge of Africa, the Middle East and India, said that while in talks with Bajaj, the company “discovered that their margin on three-wheeler activities is by far above our current margin on our four-wheeler activities.” He said that “the low-cost car will contribute to our growth in terms of volume and profitability.”
The subcompact vehicle, expected to debut in 2011, will go on sale in India in 2012. The $3,000 price-tag is being kept as a goal to stay competitive with the Tata Nano.
About 50 percent of the Indian four-wheel auto market consists of models priced below $8,000, Normand said.
Inspiration: EGM Cartech