Wednesday, June 20, 2012
By Shilpa Chopra
Cheap cars in India: Car companies find innovative ways to cut cost
India is known for innovations and Indian car industry is the laboratory. Recently, Maruti had introduced plastic fuel tanks in its Maruti Swift hatchback and it is India that the DC cars are in vogue. You say it and the car of your choice will be there in front of it. Be it a sports car based on Tata Nano or it is the Bajaj Scooter based auto rickshaw, everything is available in India. No doubt use of cost effective, cheaper and more durable materials have increase multifold in the Indian cars and the best examples are Maruti, Tata and Mahindra cars. Besides, more and more foreign car makers are imbibing India made plastics and other material in their cars in India terming it as increasing localization content.
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Tata Nano is believed to be the best example of cost cutting and which is why its price is still under Rs 1.5 lakh. Only one wiper, rear engine, single body frame, three nuts on the wheels instead of four besides other cost cutting mechanism work rampantly on the Tata Nano. It seems that in the present situation when the petrol car sales is facing a dip due to high price of petrol and the interest rates are already high, the car companies are under pressure to cut their production costs. The best way to do it is to take away the features and replace them with a more economical one. The use of plastic fuel tank in new Swift is a superb example on the line so Ford and Honda that are already using petrol tanks on their cars in India.
|See More Tata Nano Photos||Get Tata Nano Price|
Meanwhile, the falling rupee value has also increased pressure on car companies to innovate and imbibe more and more components produced in India as imports are costlier now. It is believed that car companies in India are finding newer ways to cut the production cost. Though sensing the increased awareness among the car buyers desist car companies from using ultra cheap material in their cars and a use of cheap plastic on the dash or other areas inside the car is censured heavily.