Nano struggling to stay at minuscule price

Tata Nano. Small car. Small price. Right? Well, in theory, yes. But the reality of how supplies and the demand and cost for such may be making a dent into this theory in the long run. But for now, it appears that Tata may have avoided having to eat their words as having the world's most inexpensive new car.

The issue really lies with the rising cost of steel that seems to be a big thorn in the side of car makers these days. Tata, in response to this, has had to be creative with contracts with company and also combined with the fact that the company is owned by Tata Steel means that they should be able to eat those price hike costs at least in the interim in hopes of having increased sales to offset the costs associated with the supplies.

But will this mentality last? Sure, it's a great thing to market it in this way, but the reality is that the costs probably won't be going down any time soon, and unless the company can risk making long-term deals that will continue to buoy this effort, we may just see this minuscule price grow while the small car's interest starts to get smaller---not the way Tata wants it to go, that's for sure.

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Nano struggling to stay at minuscule price

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