Wednesday, July 18, 2007

Drive thru ATMs and Low Cost Indian Car

Why do drive thru ATMs have braille keys? Answers found here and here from the Economic Naturalists Series by Prof. Robert H. Frank.
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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