“Honey, I Shrunk the Car”

This is a headline from this week’s Newsweek, the Tata buzz is still building and will be around for some time. The article is all about  the growing popularity of small cars and emergence of the small car market in the US (its existed in other continents for many, many years). The Tata Nano is showcased as the disruptive force that is without a doubt striking an innovation cord in the auto industry and getting execs brain cells revved up!

Its not the size or design of the Tato Nano which is appealing, its more about the operations and supply chain. They call it the modularization of innovation – it makes me think of cars as flatpacks – just like what people buy at IKEA

Tata may change the way cars are made around the globe however we shouldn’t forget the Tata Nano is a small car for the developing world and puts the developing world on wheels, this won’t mean we’ll all start buying cars for $2500 dollars. This is a great step up from a rickshaw and supreme innovation that helps build a more advanced and liquid economy for the people.

Growing up in Wales (UK), I’ve always been a fan of small cars. When I came to the US, I was bothered by the fact that the smallest car I could find was the death trap metro or a VW Golf (which I considered big relative to my Nissan Micra). It will be interesting to see how this trend will proliferate in the US. Mother nature will see it as a blessing even if nobody else does.     

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