Thursday, January 7, 2010

Small gets bigger while big gets cheaper

If Tata Nano was an exception, engineers at Maruti have come up MPV Eeco, priced between 2.59 to 2.89 lakhs. With a 1200 cc engine, it can carve out a new segment in the small car category. Similar to OMNI, it certainly looks better and has a powerful engine.
Auto industry has come up with very good value proposition for consumers. A multi purpose vehicle in that price range could find a huge market especially in rural India.
Another interesting story is of Bruj Khalifa, the world's tallest building. A home in Bruj costs less than a similar one in a posh colony in Delhi. Woah!
The bottom line is that to stay competitive, small has to get big and big needs to be cheaper.