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The Tata Nano, the global 'value' segment and the implications for the traditional automotive industry regions

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  • Peter Wells

Abstract

This paper provides a case study of the Tata Nano, a low-price car designed primarily in and for the Indian market, and its implications for the developed industrial markets. While the Nano is a classic 'disruptive' innovation in an Indian context, this paper argues that the car and its emulators have the potential to undermine the viability of the European automotive industry whose business is premised on technological sophistication, premium branding and high price. In an era of greater austerity, the 'value for money' segment is the one with global growth potential in emergent markets as well. The paper concludes that policy makers in Europe will need to decide how to react to the rather different vision of automobility offered by the Nano. Copyright 2010, Oxford University Press.

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  • Peter Wells, 2010. "The Tata Nano, the global 'value' segment and the implications for the traditional automotive industry regions," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 3(3), pages 443-457.
    • Handle: RePEc:oup:cjrecs:v:3:y:2010:i:3:p:443-457
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    File URL: http://hdl.handle.net/10.1093/cjres/rsq009
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    Cited by:

    1. Gill Bentley & David Bailey & Stewart MacNeill, 2013. "The changing geography of the European auto industry," Chapters, in: Frank Giarratani & Geoffrey J.D. Hewings & Philip McCann (ed.), Handbook of Industry Studies and Economic Geography, chapter 3, pages 67-96, Edward Elgar Publishing.
    2. Buckley, Peter J. & Munjal, Surender & Enderwick, Peter & Forsans, Nicolas, 2016. "The role of experiential and non-experiential knowledge in cross-border acquisitions: The case of Indian multinational enterprises," Journal of World Business, Elsevier, vol. 51(5), pages 675-685.
    3. Tristan Leo Dallo AGUSTIN & Martin SCHRODER, 2015. "The Indian Automotive Industry and the ASEAN Supply Chain Relations," Working Papers DP-2015-24, Economic Research Institute for ASEAN and East Asia (ERIA).
    4. repec:era:chaptr:2013-rpr-07-05 is not listed on IDEAS
    5. Zejian Li, 2016. "Market life-cycle and products strategies: an empirical investigation of Indian automotive market," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 10(1), pages 26-42.
    6. Swati Singh & Manoj Joshi, 2017. "New Market Creation via Innovation: A Study on Tata Nano," Papers 1708.04952, arXiv.org.
    7. Gent Abdullahu & Ejup Fejza, 2020. "After - Sales Service and Pricing as Determinants on Consumer Buying Decision in Automotive Industry Case Study: Porsche Kosova," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 9, March.
    8. Hossain, Mokter & Simula, Henri & Halme, Minna, 2016. "Can frugal go global? Diffusion patterns of frugal innovations," Technology in Society, Elsevier, vol. 46(C), pages 132-139.

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