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Do you think the entry barriers are high for automobile companies, yet to introduce in small car segment, in the Indian market. What can be the barriers, if any?

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Do you think the entry barriers are high for automobile companies, yet to introduce in small car segment, in the Indian market. What can be the barriers, if any?

Post  Admin on Tue Feb 16, 2010 9:31 pm

Do you think the entry barriers are high for automobile companies, yet to introduce in small car segment, in the Indian market. What can be the barriers, if any?

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Re: Do you think the entry barriers are high for automobile companies, yet to introduce in small car segment, in the Indian market. What can be the barriers, if any?

Post  Ami on Wed Feb 17, 2010 1:32 am

I feel that when we talk about small car segment then we can divide it into two parts now. One which is lower than 2 lakh and the other higher than that. I believe that launching a car in the higher segment is no big deal for the big companies but to launch a car in the segment of less than 2 lakh is real problem as it requires high R&D to make it cheaper, High cost involved in the supply chain, better integration with vendor etc and these are acting as entry barriers to most of the companies where Tata has already took the lead. And Tata will get the advantage to the first mover here.
Although there are other players like Renault, Bajaj, Honda trying to tap this market but the question is "Will they be able to compete with Tata nano over its cost leadership?"

~Ami

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