Thursday, January 10, 2008

Ratan Tata on Assembly of the car

"The first thing I would like to do is get a mature product in the Indian market and seed this market effectively. My aim was that I would produce a certain volume of cars and create a very low cost, very low break-even-point plant that a young entrepreneur could buy. A bunch of entrepreneurs could establish an assembly operation and Tata Motors would train their people, would oversee their quality assurance and they would become satellite assembly operations for us. So we would create entrepreneurs across the country that would produce the car. We would produce the mass items and ship it to them as kits. That is my idea of dispersing wealth. The service person would be like an insurance agent who would be trained, have a cellphone and scooter and would be assigned to a set of customers. This is just a concept. He will deal with their problems on a self employed basis and would be paid by the assembler and the customer.

It would be satisfying if the small car created 10-15 satellite groups of young engineers who could get together and do a business. They would never be able to get normally into assembly of cars. I think it will be a very satisfying thing for me to see them succeed.

What we will do outside India will be a conventional distribution system. Find an assembly plant and assemble the product in the conventional form."
(excerpts from Mr. Ratan Tata interview in ToI)

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