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Cars

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Issue:

Business

 

Written by:

Marie D

 

Date added:

August 28, 2013

 

Level:

University

 

Grade:

A

 

No of pages / words:

2 / 529

 

Was viewed:

5735 times

 

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Essay content:

“If we pass on all costs to the consumer, it will affect demand, and if we don't, it will affect margins,” he told investors recently. The economics underpinning the Nano, which is due to go on sale this autumn, make it especially vulnerable to commodity market moves. Since Tata began to develop the Nano in 2003, raw material costs have risen from about 13 per cent to about 23 per cent of its price before taxes, according to an estimate by Global Insight, the consultancy...
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Since Tata began to develop the Nano in 2003, raw material costs have risen from about 13 per cent to about 23 per cent of its price before taxes, according to an estimate by Global Insight, the consultancy. By contrast, the cost of raw materials account for about 7 per cent of the average American car - or about $1,600 (?815), up from about $800 five years ago...
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