The Most Revolutionary Concept In Education PLANMAN CHE CENTRE FOR HIGHER EDUCATION, Supported by IIPM India’s Leading B-School
Certainly, Tata Motors is not oblivious to the constraints. And perhaps this is why the company is demanding 70% of the cost of the car (ranging between Rs.70,000 to Rs.140,000 depending upon model) at the time of booking. Even if one supposes that the first one million cars (as planned) are booked at Rs.100,000 (mean of Rs.70,000 & Rs.140,000) as an upfront payment, it would increase the cash reserves of the company by a staggering Rs.100 trillion! What’s more, Tata Motors can hold on to these deposits till July, when it announces the lucky 100,000 customers who will receive the Nano at the announced price points. Out of the remaining 900,000, those who still stick with the company will get 8.5% and 8.75% interest for one-year and two-year waiting respectively. Considering current debt levels, it will be difficult for Tata Motors to take further loans from financial institutions. So the Rs.100 trillion that Tata Motors receives will aid the company’s current liquidity position (remember the $2 billion JLR debt they are having difficulty rolling over?); that too at low interest rates as banks charge 9-11% interest rate. Also, the company is charging Rs.200 for online booking and Rs.300 for manual booking, which would enable it to garner at least Rs.200 million, assuming 1 million bookings in the first batch starting April.
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
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Certainly, Tata Motors is not oblivious to the constraints. And perhaps this is why the company is demanding 70% of the cost of the car (ranging between Rs.70,000 to Rs.140,000 depending upon model) at the time of booking. Even if one supposes that the first one million cars (as planned) are booked at Rs.100,000 (mean of Rs.70,000 & Rs.140,000) as an upfront payment, it would increase the cash reserves of the company by a staggering Rs.100 trillion! What’s more, Tata Motors can hold on to these deposits till July, when it announces the lucky 100,000 customers who will receive the Nano at the announced price points. Out of the remaining 900,000, those who still stick with the company will get 8.5% and 8.75% interest for one-year and two-year waiting respectively. Considering current debt levels, it will be difficult for Tata Motors to take further loans from financial institutions. So the Rs.100 trillion that Tata Motors receives will aid the company’s current liquidity position (remember the $2 billion JLR debt they are having difficulty rolling over?); that too at low interest rates as banks charge 9-11% interest rate. Also, the company is charging Rs.200 for online booking and Rs.300 for manual booking, which would enable it to garner at least Rs.200 million, assuming 1 million bookings in the first batch starting April.
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
ZEE BUSINESS BEST B SCHOOL SURVEY
IIPM Ranked No. 1 B-School In Global Exposre - Zee...
1500-plus IIPM students placed across the country with 44 bagging international offers
PLANMAN CHE (Centre for Higher Education)
IIPM set to beat economic slowdown
IIPM, GURGAON
IIPM - Admission Procedure
IIPM awards four Bengali novelists
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
