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. An industry analyst examines the features of the Tata Nano and concludes that Tata will never be able to compete in the U.S. or European markets. This conclusion rests on which of the following​ assumptions?

a) The U.S. and European markets prefer smaller cars.
b) The Tata Nano lacks safety features required in the U.S. and Europe.
c) Consumers in the U.S. and Europe prioritize fuel efficiency.
d) The U.S. and European consumers are price-conscious.

Answer 1

The industry analyst's conclusion likely assumes that the Tata Nano lacks certain features or qualities required or valued in Western markets, such as safety features or luxury standards.

Step-by-step explanation:

An industry analyst's conclusion that Tata Motors will never be able to compete in the U.S. or European markets with its Tata Nano, which is the world's most inexpensive car, likely rests on the assumption that the Tata Nano lacks certain features or qualities that are valued or required in these markets. For instance, the assumption could be that the Nano lacks sufficient safety features mandated in the U.S. and Europe, or that it does not match the performance and luxury expectations prevalent in Western automobile markets. This assumption reflects the broader dynamics at play in the international automobile industry, where global economic competition drives innovation and adaptation to diverse market demands.