Maker of India's $2,500 car tries selling $7,800 home
Filed under: Bargains, Home, Real Estate, Transportation
Just as it targeted the "bottom of the pyramid" with its inexpensive $2,500 Nano car, the Indian company Tata is going after those same consumers by selling low-cost housing for as low as $7,800.The 1,000 tiny apartments will be from 283 square feet to 465 square feet and will built outside Mumbai and sell for $7,800 to $13,400 each, according to a BusinessWeek story. Other low-cost projects are planned outside other major cities.
That segment of the market was largely overlooked during the housing boom, as India's builders concentrated on building new high rises and mansions on golf courses. Increasing land prices forced them to chase the higher profits that came with high-end properties.
But some business consultants suggested that providing housing to the "bottom of the pyramid," where the bulk of consumers are, would lead to greater targets.
The apartments will be built in an industrial area where many lower-wage commuters already rent. The community will have its own garden, post office, meeting hall, schools and hospital.
The small apartments are targeted at people earning $6,000 to $10,000 a year. According to the BusinessWeek story, the average call center employee with 10 to 20 years of experience earns 320,000 rupees a year, or about $6,400.
With auto transportation being brought to the mainstream Indian population, bringing low-cost housing to them seems like a better necessity.
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Reader Comments (Page 1 of 1)
5-26-2009 @ 6:44PM
Amanda said...
Why don't they have these cars and houses here?
Reply
5-26-2009 @ 9:22PM
Patrick said...
Amanda...ask your friendly Washington DC Lobbyist why we cant get these in this country......FOR SALE TO THE HIGHEST BIDDER....THE UNITED STATES OF AMERICA
5-27-2009 @ 5:24AM
Bob said...
Because we have safety & emission standards for cars, and building codes for huses.
5-26-2009 @ 7:01PM
sher said...
Amanda...who would want them.....do you think that car would be safe on our highways? As far as the low cost condos.....check out the people who live in the low cost apartments (for the most part)....they trash them in no time flat....so what do you suppose they'd do to the condos??????
Reply
5-26-2009 @ 7:34PM
howard said...
I'd buy one Amanda.
Reply
5-26-2009 @ 7:32PM
John said...
They don't have these cars here because they would not be legal on our roads, to make them so would push the price up, in India they don't worry about the polution. Further more the exchange rate alone would triple the price. The houses look like and are fire traps, they would not be allowed here because of safety, again they don't really care about this in India. Also people in India do not make the money we earn here, they work for pennies on our dollar.
Reply
5-26-2009 @ 7:41PM
T said...
They do have them here there called mobile homes im sure you could get one of the katrina surplus ones cheap.
Reply
5-26-2009 @ 8:17PM
ilove2run90 said...
for a free laptop go to http://www.freemacbookpro.com/?referral=16crs3u
Reply
5-26-2009 @ 9:18PM
Patrick said...
Amanda...ask your friendly Washington DC Lobbyist why we can't habe these here in this country...crooked politicians
Reply
5-27-2009 @ 12:35AM
jessewooding said...
We cannot have things like that here because we sacrifice freedoms for safety and security. Although the car and the "house" would be very reasonable options for some of our population to use, they would not likely pass the scrutiny of out safety laws. Therefore, even if people wanted to use them, we will not allow them to for their own safety.
Reply
5-27-2009 @ 10:08AM
Carazoo.com said...
Nice article. :-)
Reply