Case Questions: Tata motors was producing Indica (which costs around 3 Lakhs), and wanted to produce a 1 lakh car. How can they go about doing this?

Question

Accepted Answer

Tata Motors wants to produce a 1 lakh car from their existing Indica model.

Tata Motors can reduce the number of features in the car to bring down the cost.
They can also use cheaper materials for the car's body and interior.
Tata Motors can explore partnerships with other companies to share costs and resources.
They can also optimize their supply chain to reduce production costs.
Tata Motors can consider producing the car in a different location with lower labor costs.
They can also explore government subsidies or tax breaks to reduce costs.
Tata Motors can conduct market research to identify the most important features for customers and focus on those.
They can also consider offering the car in a stripped-down version with the option to add features for an additional cost.

Top McKinsey & Company Engagement Manager interview questions & answers