Futuristic Cars: Disruptive Innovation and Incremental Models

Running head: FUTURISTIC CARS
Futuristic Cars
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1FUTURISTIC CARS
1. Disruptive Innovation of Nano Car and Implications for Industry Incumbents
The Nano Car was introduced within the Indian markets in January 2007 and was
considered as the cheapest car in the world. The innovative car model produced by Tata Motors
was mainly launched in order to disrupt the automobile market. In order to achieve their prime
target, they had reduced the costs of production by profoundly decreasing the performance of the
car. Tata Motors had focused on the low cost of design of the car (Tiwari and Herstatt 2014).
Since most of the future growth in the sector of cars would take place within the developing and
emerging regions, the automobile market is set to conquer the future automobile market with
their low-priced cars.
With the innovation of Tata Nano within the automobile industry, different industry
incumbents have come to the conclusion that that Nano would have the capability to convert the
present two-wheeler market to a major four-wheeler market. These industry incumbents have
also discussed the fact that Nano would reach into the houses of the middle-class families and
thus would prove to be a major game-changer within the automobile market (Prabhu and Jain
2015). The car had met the Indian safety standards and had also passed all the crash tests from
the rear, front and sides. Nano had also claimed to cause lesser emissions than motorcycles. The
different automobile experts had also claimed that with the innovative form of creative break,
they would be able to regionalize the Nano car to a very large extent and thus involve different
independent franchisees (Pavie and Egal 2014). With these kinds of perspectives and focusing on
essentials, the company would be able to make a huge kind of future growth within the Indian
automobile market.