Question

In the​ past, only​ India's elite could afford to buy a car. But recent dramatic changes in​ India's economy have produced a growing middle class and rapidly rising incomes.​ Now, to meet the new​ demand, established automakers are importing​ smaller, more-affordable vehicles into India. But they will have to find a way to compete with​ India's Tata​ Motors, which has unveiled the least expensive car ever in this​ market, the Tata Nano. The Nano sells for only​ 100,000 rupees​ (about US​ $2,200). It seats four​ passengers, gets 50 miles per​ gallon, and travels at a top speed of 60 miles per hour. Based on this​ information, Tata most likely believed that as a result of recent changes in​ India's economy, a growing number of Indian consumers​ ______

a) would prefer larger, more expensive cars.
b) would choose foreign-made cars over domestic ones.
c) would prioritize fuel efficiency and affordability in car purchases.
d) would not be interested in purchasing cars at all.

Answer 1

Tata Motors, in response to a growing Indian middle class, believed that consumers would prioritize affordability and fuel efficiency, thus introducing the cost-effective Tata Nano. This move suggests a strategic response to the increased demand for smaller, efficient vehicles in the evolving Indian market.

Step-by-step explanation:

Based on the information provided, Tata Motors most likely believed that as a result of recent changes in India's economy, a growing number of Indian consumers would prioritize fuel efficiency and affordability in car purchases. The Tata Nano, known as the world's most inexpensive car, was introduced by Tata Motors to cater to India's expanding middle class. With the Indian economy experiencing growth and a rising number of consumers able to afford vehicles, Tata Motors has strategically positioned the Nano to be an attractive option for those seeking economic and fuel-efficient transportation.

The automotive landscape in India showcases the evolution of vehicle manufacturing, with companies like Tata Motors offering products that address local demands for affordability and efficiency. This is reflective of a broader trend in which greater competition in the auto industry has led to innovation and an increased variety of consumer choices, including smaller and more affordable cars, which have become critical in densely populated and fast-developing nations like India.