The launch of Tata’s Nano car in India has received attention of the global press for a very good reason. A new car for £1350 (UK equivalent)? Looking at the specification you can perhaps see why. A 623cc engine, top speed of 65mph, No radio, no airbag, no power steering and only one windscreen wiper!
But it is not just all the extras that have been stripped out, Tata have gone to great lengths to minimise components, use less steel and have taken advantage of low production costs in India.
By negotiating with suppliers, re-thinking their supply base and design Tata have not only made the Nano profitable, but have managed spend and production so effectively that this is a great spend management message not only to the automotive industry but other manufacturers too.
