TATA NANO: QUIZ Group No._________; Name____________________________________________ Should Tata Motors introduce the Nano in the European Market or not? Take your decision by assessing ‘market...

Ans1. Primary growth in global automobile market in upcoming years will come from the emerging geographical market like China, India, South Africa and Europe. The largest growth in this sector will come from fast-growing small car segment. Rise of literacy, increase of disposable income of middle-call section of the country is a major catalyst of small car markets in emerging economies. However, there are two clear restrictions for the company to manifest on the European Market. These are explained below
Emission Standards - Western Europe has strongly emission standards that are 10 years ahead of Indian market. While Indian automakers are adopting these standards, however there is still a major 5-to-7 year’s lag. One of the biggest advantage that Tata Nano can leverage upon is, cars that are lightweight and falls in the low-cost segment along with their compact engines and modest fuel consumptions will be able to meet the current standards of emission for European Market.
Safety Regulations in Europe needs to be strictly adhered too, with respect to air bags, belts of the seat, and frontal protection standards. These safety regulations are relatively lenient in developing countries like India. If this not followed then there might be compliance issues with the company.
Third, another problem with European market is the high taxes especially for Tata Nano. The target base price is US$2500 for the Indian market can hike to double its original value if they manifest in the European country.
Market...