Ultra-Low-Cost Cars Pose Opportunities, Risks, Study Shows

摘要

ENTERING THE ULTRA-LOW-COST CAR SEG- ment, as India's Tata Group intends to do with its USD2,500 Nano car, is fraught with rewards and risks, an A.T. Kearney study finds. While the profit margins are razor thin on ultra-low-cost cars (ULLCs), which the consultancy defines as those costing USD5,000 or less, the volume potential is great, especially in emerging markets such as India.