Wednesday, September 12, 2007

The $2,500 Car

Tata, an Indian car manufacturer, will be releasing next year a car that only costs $2,500. This car will provide affordability and great fuel efficiency. Could this car change the automobile industry forever? In a time when the costs of living, food and gas are rising will people start to change their perception of a car? In the past, a car was seen as a status symbol but as costs rise a car is beginning to be seen as a commodity or something that is purely functional. Therefore the successful brands in the future will be those that combine low price with fuel efficiency.

Following the success of Toyota and Honda, soon America will start seeing Chinese and Indian car brands. When this happens these companies will have to overcome the same negative backlash that Toyota received from the public as people complained about underpricing and beating up on American brands such as GM. But just like Honda, Toyota and Hyundai eventually the brand that wins is one that meets the needs of the customer and provides great quality at an affordable price.

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