Nano may prove ‘goddess of wealth’ for Tata Motors
Tata Nano, the world’s cheapest car, may prove goddess of wealth for Tata Motors. The reason is the dipping commodity prices and excise duty. Coming down of excise duty on smaller cars from 12 to 8 per cent is another reason. For Tata Motors it is a dream come true because the booking will generate a corpus of Rs 5,000 crore besides Rs 95,000 an interest free deposit of the booking. Besides it the company will not have to pay tax on auto components as the supplier would already have done so.
CarDekho
Published On Mar 26, 2009 18:16 IST
Published OnMar 26, 2009 18:16 IST
Last Updated OnMar 26, 2009 18:16 IST
3.8K Views
- Write a comment
Auto analyst with Booz & Company, Vikas Sehgal said that Tata Motors would need to sell number of Tata Nano to break even. However, by leveraging the Tata Nano platform, it could make high-end cars for overseas markets. With several variants, it could be a highly profitable product for the company.
Read More on : Tata Nano 2013
Was this article helpful ?
<p>The CarDekho.com community offers auto enthusiasts a friendly home where they can buy their dream car. The CarDekho.com Research Center gives shoppers all the tools needed to make an informed buying decision, including vehicle reviews, ratings, safety features and specifications.</p>Read more
