Tata case - pricing Study Example | Topics and Well Written Essays - 1000 words

Tata - pricing - Case Study Example This is in addition to the research and development situated in those same parts of countries. Its first commercial vehicle was manufactured in 1954 with a company called Daimler- Benz (Bhaktavatsala, 1993). After acquiring stakes in a Hispano Carrocera which specializes in manufacturing buses and coaches and from then, decided to also venture in bus and coach manufacturing. The company has been involved a spree of acquiring stakes in companies or forming joint ventures with other car manufacturing and then doing the same production. Examples of the companies it has partnered with through acquiring their stakes or through joint ventures or even buying include, jaguar Land rover, Hispano Carrocera, Marcopolo, Daewoo, Trilix and many others. This is in a bid to cut on the cost of having to start a new product altogether. Tata is an Indian company that with a vision to manufacture cheap and affordable vehicles targeting Indian population whose middle class has been rising with time. Its first fully indigenous passenger car was launched in the year 1998 and nick named it the Indica. In an attempt to manufacture even more cheap and affordable cars for the Indian population who prefer travelling together with their family members, Tata launched in 2008 a small but spacious car called Tata Nano. This car was the cheapest world-wide by the time it was launched. The company in trying to set affordable but right prices for its Nano cars seem to have had some considerations in mind including profitability to the company, economic status of Indians, the prices of Nano Parts, and the installations that are put in it. The company’s design of the car makes the car cheap by not having expensive stereos that normally accompany expensive cars. The company worked from top downwards to arrive at this affordable car to many. They first set the highest price then worked downwards to design and develop a car with materials that would add up to this amount. The