Mass production reduces cost, but I wonder why this principle can not be applied in manufacturing the Rs 1 lakh car by the TATAs. Instead the cost cutting principles seem to be these.
The car will come in two or three levels the lowest level being priced closest to the 1 lakh mark which the Tata calls the rudimentary model, the other word for something that moves and has four wheels and nothing else. The challenge Tata has is to make this appealing enough for the consumers.
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