A vast majority of CEOs hold that Tata has given a stiff challenge to two-wheeler manufactures, whose market size could shrink as a result of the launch
About 20% price cut is expected in two-wheeler segment with launch of Tata-Nano and its another positive fall out as indicated in a survey by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) would be that bank’s loan exposure to four-wheeler industry would go up by 25% from October 2008 onwards after Nano cars roll down on roads with prices of second hand cars falling by 35%.
The survey in which 250 CEO’s, having affiliations with the ASSOCHAM views were obtained on fall out of People’s Car, 80% of them unanimously felt that with launch of Tata-Nano, India has become a member of Car creation club and no longer remains as its lead manufacture.
The 200 CEO’s that those who held this view also sought that just as TATA’s sacrificed their profits element in the Chotti Car, the government should waive off 12.5% VAT on it in public interest.
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