Cricket legend Sachin Tendulkar and President of BMW India Vikram Pawah at the launch of the BMW 5 series in Mumbai.
Kawasaki Versys is all set to hit the road
The BMW Motorrad G 310 GS shall arrive shortly
Inside the new ‘automatic’ Honda Amaze CVT
For those who want to play, the all-new Maruti Suzuki Baleno RS
Sachin Tendulkar Sells His Nissan GT-R - The Only Egoist Edition In India. Sachin has sold the GT-R to a Bombay based automotive enthusiast
Hitoshi Kono, Deputy Managing Director, Isuzu Motors India, during the launch of ISUZU 'mu-X' SUV at a press conference, in Bengaluru.
Kenichi Ayukawa, Managing Director & CEO, Maruti Suzuki and R S Kalsi, Executive Director (Marketing & Sales) Maruti Suzuki at the launch of New Maruti Suzuki Dzire car during a pr...
Britain's Queen Elizabeth II stands next to the classic invalid carriage as they were known, in the 1960's and 1970's which were low in cost and aided the mobility of people who we...
AeroMobil display their latest prototype of a flying car, in Monaco. The light frame plane whose wings can fold back, like an insect is boosted by a rear propeller. The company say...
People throng a vehicle showroom after discounts up to Rs 20,000 were offered on BS-III models to liquidate stocks, a day after the Supreme court banned sale and registration of su...
A board written " BS III Not in stock" outside a two wheeler showroom, in East Delhi.
Crowd at two wheeler showroom to buy discounted BS III two wheelers, in East Delhi.
Electric vehicles being showcased at International Expo for the Growth of Indian E-Vehicle Industry at Pragati Maidan, in New Delhi.
Rahul Bajaj, Bajaj Group
Onkar Singh Kanwar, Apollo Tyres
Brijmohan Lall Munjal (1923-2015) & Pawan Kant Munjal, Hero Group
Filipino worker Frank Garcia picks a vehicle window at a used car parts shop in Quezon city, north of Manila, Philippines. Many stores in the city sell second hand car spare parts ...
Chairman emeritus of Tata Sons, Ratan Tata (left) and Tata Sons Chairman Natarajan Chandrasekaran pose near TAMO Nexon, being showcased at the 87th Geneva International Motor Show,...
Auto-rickshaws parked along a road during a protest against State Government and Union Government over Jallikattu ban, in Coimbatore.
Investment opportunities in India's booming automobile and auto-components sectors have attracted around 100 Chinese firms
Czech carmaker Skoda today launched an all-new version of its best selling sedan Octavia in India with price starting at R
Swedish car maker Volvo says all its new cars from 2019 will have an electric motor, ending altogether the manufacture of
Competition Commission today imposed a penalty of Rs 87 crore on Hyundai Motor India for unfair business practices with re
American auto major General Motors today decided to stop selling its vehicles in India as it failed to turnaround in its f
_(8765031426)_100_140.jpg "Tesla Overtakes Top US Automaker General Motors In Market Value")
Tesla Motors overtook top US automaker General Motors in market capitalisation today following an upbeat report by an inve
Japanese auto major Toyota's luxury brand Lexus today entered India with the launch of three models priced up to Rs 1.09 c
Renault has cheated for over 25 years on pollution tests for diesel and petrol engines with the knowledge of top managemen
South Korean automaker Hyundai has decided to phase out its popular hatchback i10 in India as it shifts focus to more prem
The US' largest automaker General Motors today said it will lay off 1,100 workers at an assembly plant in Michigan, the fo
The Economist's Free Exchange discusses the Nano:
The economist in me is puzzled: can you claim to have made a one-lakh car ... if you are selling it at a loss? After all, if Tata Motors was prepared to make a loss to realise its dream of a one-lakh car, it could simply have repriced the Tata Indica, its existing small car, at 100,000 rupees and avoided all the fuss of a fresh design and a new plant.
It seems to me that until the one-lakh car breaks even, it does not exist in an economic sense. But by the time the profitable “long run” arrives, I am not convinced that the Nano will still be 100,000 rupees.
From here, and in part II it goes on to discuss the economics of demand outstripping supply, deposits that would remain with the company:
Suppose the initial allotment of cars is subscribed twice over: Tata Motors will get an immediate cash infusion of more than 20 billion rupees. If it can sustain the hype and expectation, it won’t have to return this booking money to the surplus customers. It will, in effect, have secured for itself a cheapish source of deposits, redeemable for a car, as production allows. The cash will come in handy—in June, Tata Motors has to repay about 100 billion rupees ($2 billion) to the lenders who financed its acquisition of Jaguar Land Rover last year.
There is a peculiar circularity to all this. By declaring an impossible price tag, the company has generated enough lucrative hype to make the cheapest car viable after all.
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