nano in china
TRANSCRIPT
TATA NANO
REPLACEMENT OF TWO WHEELERS ENTRY LEVEL ULTRA LOW COST HATCHBACKSOLD 70,000 UNITS IN FIRST TWO YEARS
CHINA’S ECONOMY IN PROSPECTIVE TO GLOBAL
China is now the world’s largest automobile producer and consumer.
Chery QQ market leading ultra low cost Car in china
Sale of ultra low cost cars increasing in a increasing rate
25% of the population is middle class.
IN CHINAWITH
JOINT VENTUREThe nano will remain same
Sharing of risks with a venture partnerJoint ventures can be flexible
Technological Support
Benefits in Branding
EXPORITNG
Rigid export policy (Duties and Taxes)
Loosing cost competitive advantages
Middleman involvement
Beyond control
CONTRACTUAL AGREEMENT
BUREAUCRACY IN MANUFACTURING AND SALES
LACK OF TRUST
VARIOUS TERMS AND CONDITIONS
ACQUISITION
CULTURAL CLASHES BETWEEN PARENT AND SUBSIDARY
INCREASE ADMINISTRATIVE BURDEN
HUGE MONEY INVOLVEMENT
GREENFIELD INVESTMENT
INVOLVE HIGH RISK
POLITICAL ISSUES
CHALLENGES IN CHANNELS OF DISTRIBUTION
BRAND ESTABLISHMENT