2. Introduction Of Tata Nano
• “Dream-dream and dream, because dream gives vision, vision gives
thoughts and finally thoughts lead to the action". Each letter of these
motivational words said by India's former President Dr. A.P.J. Abdul
Kalam goes exactly with Mr. Ratan Tata, Chairman of Tata group,
who in the year 2003, dreamt of producing a safe, affordable Car for
the common man. Finally after the wait of five years, crossing all
financial and technological barriers, Ratan Tata kept his promise
and unveiled Tata 'Nano' on 10th January 2007, at the 9th Auto
Expo 2008 in New Delhi. Tata Nano, cool & smart, launched by Tata
Motors is world's cheapest Car with a price tag of $ 2500.
3. Description about Nano
The project has literally become India's claim-for-fame in the international-
media due to Tata Motors' innovation in developing the car, as well as
keeping it low in price.
The car itself is expected to boost the Indian Economy, create
entrepreneurial-opportunities across India, as well as expand the Indian car
market by 65%.
The car was envisioned by renowned industrialist, Ratan Tata, Chairman of
the Tata Group and Tata Motors, who has described it as an eco-friendly
Nano has been greatly appreciated by many sources and the media for its
low-cost and eco-friendly initiatives which include using compressed-air as
fuel and an electric-version.
Tata Group is expected to mass-manufacture the Nano in very large
quantities, particularly the electric-version, and, besides selling them in
India, to also export them world-wide.
Length 3.1 metres
Width 1.5 metres
Height 1.6 meters
Engine All-aluminium, Rear Mounted, Rear Wheel Drive
Capacity 623 cc
Power 33 PS
Fuel Injection Multi Point Fuel Injection (MPFI)
Fuel Type Petrol, Diesel Version will be later
Body Type Sheet Metal
Seating Capacity 04 (Four)
20-22 Kmpl (City drive)
Mileage 26 Kmpl (Highways)
Top Speed 75 K.M
Emission Norms Euro-IV, Bharat Stage-III compliant
Safety Norms Frontal Crash Tested
Versions One Standard and Two Deluxe
5. Reactions about Nano
• "It's a good historic moment for the Indian auto industry and also a proud one indeed
that an Indian company took a step forward on this road. Its an upgradation for an
auto wheeler rider to by a car now.“
Rajesh Jejurikar, Managing Director, Mahindra and Renault's.
• "It's good product but it's still too early to say whether it will overtake the 800 because
it caters to a totally new market segment.”
Said Jagdish Khattar, Former MD of Maruti Udyog Limited
"Meeting the proper quality standards and safety is not feasible at all in such a model.
Andreas Prinz, Managing Director (Passenger Cars), Volkswagen Group Sales
"I think it is a great thing for India because mobility is giving new opportunities. I hope
Tata drives to great success with the Rs one lakh car, but it is not included in our
• Thomas Kuehl, Board Member, Skoda Auto India.
6. What makes it so cheap !
• The Tata Nano uses plastics and adhesives
rather than welding.
• introducing the car with an artificially low price
through govt-subsidies and tax-breaks, or
• using vertical-integration, or
• partially using inexpensive polymers or
biodegradable plastics instead of a full metal-
• It has no AC, no power steering, no power
windows, no power bells and whistles.
7. Target Market
• The low-cost car is clearly
intended for the masses. For
the family of four that would
otherwise ride on a scooter,
precariously balancing a tiny
tot on the front and a baby on
the wife’s lap. For the first-time
car buyer in India - a huge
market despite the increasing
number of cars in the urban
and semi-urban areas.
• Its Also attract the small cars
buyers like maruti 800.
8. Fundamental Analysis
• Overview of Indian Economy
• Industrial Profile
• Profile of Indian Automobile Industry
• Tata Motors
9. Overview of Indian Economy
• The Indian economy continued to register impressive GDP growth,
although the rate of growth declined marginally over the previous
year, reflecting inflationary trends driven by the increase in the cost
of energy and raw materials. The level of industrial activity has also
begun to decline as a result of fiscal constraints imposed on money
supply and the raising of interest rates .
• Investment flows into India increased by 20% to a record level of
about Rs. 120,000 Crores.
• The Indian automotive sector grew by 10% overall during the year
with substantial growth in the Light Commercial Vehicles sector and
new passenger car introductions. In the country 499,978 new
commercial vehicles were sold during the year and passenger car
sales grew to 1.53 million vehicles this year.
11. Indian Automobile Industry
According to the UNIDO International Yearbook of Industrial Statistics 2008,
India features among the top 15 auto-makers. Currently, it ranks 11th in the
world in terms of car production and 13th in terms of commercial vehicle
production, which includes both 2-wheelers and 4-wheelers. At the same time,
the Indian car makers are earning acclaim worldwide.
The first automobile in India rolled in 1897 in Bombay.
India is being recognized as potential emerging auto market. Foreign players are adding
to their investments in Indian auto industry.
Within two-wheelers, motorcycles contribute 80% of the segment size.
Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%). Tata
Motors dominates over 60% of the Indian commercial vehicle market.
India is the fourth largest car market in Asia - recently crossed the 1 million mark.
2/3rd of auto component production is consumed directly by OEMs.
India is the largest three-wheeler market in the world and the largest two-wheeler
manufacturer in the world.
India is the second largest tractor manufacturer in the world.
India is the fifth largest commercial vehicle manufacturer in the world.
The number one global motorcycle manufacturer is in India.
13. Automobile Industry
The liberalization policy and various tax reliefs by the Govt. of India
in recent years has made remarkable impacts on Indian Automobile
Industry. Indian auto industry, which is currently growing at the pace
of around 18 % per annum, has become a hot destination for global
auto players like Volvo, General Motors and Ford.
In India there are 100 people per vehicle, while this figure is 82 in
China. It is expected that Indian automobile industry will achieve
mass motorization status by 2014.
The passenger vehicle industry also witnessed a slowdown but
managed to grow by 11.1% by increasing discounts on mature
products, launching new models and due to reduction in excise duty
announced by the government in Budget during February’08.
Vehicle exports also grew, albeit at a slightly lower rate of 11.9% as
compared to 14.8% witnessed in the previous year
The domestic commercial vehicle industry grew by 6.9% as
compared to over 33% growth achieved in the last fiscal.
15. Tata Motors Limited
Tata Motors Limited, formerly known as TELCO (TATA
Engineering and Locomotive Company), is a multinational
corporation headquartered in Mumbai, India. It is India's largest
passenger automobile and commercial vehicle manufacturing
company. Part of the Tata Group, and one of the world's largest
manufacturers of commercial vehicles. The OICA ranked it as the
world's 20th largest automaker, based on figures for 2006.
Tata Motors has its manufacturing base in Jamshedpur, Pantnagar,
Tata Motors was established in 1945, when the company began
manufacturing locomotives. The company manufactured its first
commercial vehicle in 1954 in collaboration with Daimler-Benz AG,
which ended in 1969.
In March 2008, it finalised a deal with Ford Motor Company to
acquire their British Jaguar Land Rover (JLR) business, which also
includes the Rover, Daimler and Lanchester brand names.The
purchase was completed on 2nd June 2008.
19. News from various surveys and
Small cars have big potential: Survey Business Standard: January 15, 2008
Tata Nano sets the platform for India as a frugal engineering hub
livemint.com: January 11, 2008
Global problems, Desi solutions The Economic Times: May 15, 2008
Nano makes it to Time's most important cars of all time
The Hindu Business Line: January 17, 2008
Indian auto industry to lead globally by 2020: IBM New Delhi: The Indian
automobile industry is all set to be the global leader by 2020 with the
trailblazing work done by the Tatas, according to IT and consultancy giant
IBM. September 08, 2008
(sources : Indian Brand Equity foundation www.ibef.org)
The car itself is expected to boost the Indian Economy as well as expand
the Indian car market by 65%, according to rating agency CRISIL.
20. Obstacles to Nano
However, Due to the Singur land dispute, the "Stalled Car Factory"
is "Costing Jobs, Splitting Neighbors in West Bengal”
“ Tata's problems in West Bengal are scaring off other industries
hoping to locate here, including Infosys, a software maker that
wanted to build a business park that would provide 5,000 jobs.
Due to ongoing opposition to Tata's Singur car-factory by
Mamta Banerjee, who demanded land to be returned from the
factory, Tata Motors took decision to pull out of Singur. Tata Motors
is manufacturing Tata Nano at its Pantnagar plant.
Tata Motors announced it was pulling out its Nano small car
industrial project from West Bengal's Singur and blamed the
Mamata Banerjee-led Trinamool Congress, which spearheaded the
protests against the factory, for the 'painful' decision.
While existence of Tata Nano could lead to high industrial growth ,
the exit lead west Bengal a loss of more than 80,000 crore .How
ever Tata has to suffer in terms of delay and settlement cost .
21. Competencies of Tata Nano
• Tata is now 57th most valuable brand globally livemint.com: April
22, 2008 The Tata group’s intense activities in 2007 have seen
it rising 45 places to No. 57 in Brand Finance Top 500 Global
According to one report, India as well as other nations, such as
European nations[, have great expectations from the Nano and are
keenly and eagerly eagerly awaiting it, especially the electric version
of the Nano.
• Modular design
In fact, Tata envisions going even further, providing the tools for local
mechanics to assemble the car in existing auto shops or even in new
garages created to cater to remote rural customers. With the exception
of Manjeet Kripalani, BusinessWeek's India bureau chief, few have focused
on this breakthrough element of the Nano innovation (BusinessWeek.com,
22. Competencies of Tata Nano
• Pricing strategy
Tata initially targeted the vehicle as "the least expensive
production car in the world"— aiming for a starting price of 100,000
rupees or approximately $2300 US despite rapidly rising material
• Export expectation
• Being worlds cheapest car it is expected that not only India demand for
Nano will go rise at global level. Since it meeting Euro-4 norms at this price
so this is taking as a future of small car segment .
• Reputation and Acceptance of Tata After launch
“TATAs have shown the world what Indian engineering is truly capable of”
Financial Times U K reports
• Enthusiastic support
Tata Motors is receiving preliminary and some very enthusiastic
support in the media and officials, even from Europe, for the
electric-version from India as well as other-nations. The enthusiasm
is even higher than that for the petrol-version
23. Future of Nano (conclusion)
• Emerging markets are a fertile ground for innovation. The challenge
of reaching dispersed, low-income consumers in emerging markets
often spurs significant innovation.
• As customers gain more power, they will demand more tailoring and
value-added service to meet their needs. Companies that innovate
on this dimension are likely to be richly rewarded.
• World is getting tougher day by day being unique is a competitive
advantage. Expectations to Nano has proved this .
• After 100 years to Henry Ford , Tata has proved him again not only
he came out of the expectations but also came out with a platform
for Indian auto sector .
• So this as per this project conclusion can be draw as a
future car not only of Indian but also if exported than
could be to the world.
24. Important questions ?
• Will the Nano succeed?
• Car of the Future?
• Is it fair to blame the Nano for the
(upcoming) ills of Indian road
• What do you think? Is the Nano a car
of the future? Or just another Yugo
debacle waiting to happen? Would you