...motors is Indias largest automobile Company it is the leader by far in commercial vahicles in each seagment , and second largest in passenger vahicles market . The company is world's fifth largest medium in heavy commercial vahicle manifacture , world's second largest medium in heavy bus manifacture . Established in 1945 , Tata motors presence inded cuts length and breth of India with over 4 million vehicles which rolled out in 1954 . The foundation of the company is deep understanding of customer needs . About Tata Nano: Tata motors lonched Tata Nano in 2008 , world's cheapest car ₹ 100,000. Ratan Tata the chairman of Tata group and Tata motors promised India to build " World's cheapest car " and now it's done , it was defined by the company as ' a comfortable , all weather car, with high on fuel efficiency and low emission ' Characteristics of Tata Nano : Cheap:- Nano is considered as ' world's cheapest car' which is 'one lakh' due it is considered as "people's car" Fuel efficient engine: It's mileage is 20km/Litre . The luxury models has a Diesel engine Comfortable : Nano has been convinced for four persons . It's space adapted to this. Four doors enable the enterence in the car. Seating space is generous and quiet comfortable it enables the driver to manoveure easily beside the car is available in two modules standurd and deluxe. Ecologycle : According to Ratan Tata (chairman of Tata group) Tata Nano meates all current legislative emission norms and...
Words: 381 - Pages: 2
...Team 1 - PRADEEP ALAGIRI, TARUN BHAMBHANI, ANUNAY BHATT, PRIYANKA BISWAS, SHANMUKH BOKKA subject: TATA NANO: THE WORLD’S FIRST Rs. 1 lakh car date: 2/1/2016 Introduction and Case Background The case presents the path breaking endeavor to manufacture world’s cheapest car priced at approximately $2,200. This car was developed by Tata Motors, a conglomerate under the umbrella of Tata Group, one of India’s oldest and most revered companies. The company was founded in 1886 by Mr. Jamsetji Tata and is now preceded upon by Mr. Ratan Tata. Business Problem Tata Nano enjoys the reputation of conceptualizing the unique idea of producing world’s cheapest car and was even successful in delivering results. However, it has been facing several hurdles throughout the process. Weight and cost limitations dictated the entire manufacturing process. Even after a strong demand prediction and a highly awaited launch, Nano suffered its share of early struggles. Nano had to shift the manufacturing plant from West Bengal owing to the persistent resistance from local farmers. To exacerbate the situation, several Nanos caught fire causing an extremely bad publicity. Although, several modifications were made to improve car security, the car sales were far below the expected average sales. In order to improve sales and help Nano achieve the status of the first affordable car, it is imperative that the company focuses on security features and adopt a better marketing strategy. Important...
Words: 556 - Pages: 3
...consolidated revenues of USD 20 billion in 2009-10. It is the leader in commercial vehicles. and among the top three in passenger vehicles. Tata Motors has products in the compact, midsize car and utility vehicle segments. The company is the world's fourth largest truck manufacturer, the world's second largest bus manufacturer, and employs 24,000 workers. Since first rolled out in 1954, Tata Motors has produced and sold over 4 million vehicles in India.[ In this report we will discuss the various methods of analysis by means of which Tata Motors analysises its business environment. THE method used for analysis are- I. PEST Analysis In PEST analysis various Political,Economic,Social,Technological factors which affect the business are identified and analysed In addition to this Portar’s Five forces which are basically threats to the business are identified and analysed. TATA NANO INTRODUCTION The Tata Nano is an inexpensive, rear-engined, four-passenger city car built by the Indian company Tata Motors and is aimed primarily at the Indian domestic market. Tata Motors began selling its "one-lakh car"( AUS $2100) in March, 2009.The cheapest car in the world today,though the price continues to rise due to increasing material costs,it is an exemplary example of Gandhian engineering, a concept involving deep frugality and a...
Words: 2714 - Pages: 11
...Table of content I. Introduction I. Introduction: The Tata Nano also called one-lakh car is a city car manufactured by Tata Motors, a car company based in India, is quickly becoming a new star in the car industries as other big names in industries such as Toyota and General Motor are suffering losses due to the economic crisis. One of the smallest as well as lowest powered cars in the world, it was designed to be the cheapest car in India aimed mainly at the lowest price segment in the Indian domestic market. The Nano sold in India is a 624cc, rear-engine (for a less complex and hence cheaper transmission), manual transmission, four-passenger, four-door car. The car lacks power steering and safety features like air-bags and ABS. Assemble line is in Pantnagar, Uttarkhand, India and Charodi, Gujarat, India (since June 2010). The car was launched in the Indian market in March, 2009 with a pre-launch price offer of 100,000 (US$ 2100). II. History: 1945 - The Company was incorporated on 1st September at Mumbai to manufacture diesel vehicles for commercial use, excavators, industrial shunner, dumpers, heavy forgings and machine tools. - The commercial diesel vehicles which were known `Tata Mercedes Benz' (TMB) are now called `Tata' vehicles after the expiry of the collaboration agreement with Daimler-Benz AG, West Germany. The company also used to manufacture pulp and paper making machinery. Seeing an opportunity in the great number of Indian families with two-wheeled...
Words: 375 - Pages: 2
...challenges to the companies. For surviving and thriving in this scenario companies need to develop effective brand positioning strategies .Positioning helps customers know the real differences among competing products so that they can choose the one that is most valuable and useful to them.This is a case study of Tata Nano, one of the most ambitious projects of Tata Motor’s, which was started in 2008. It was envisioned by the Tata Group former chairman Ratan Tata himself. The case focuses on how the initial strategies for launching and positioning Tata Nano as a “People’s Car” backfired and how management recognized its shortcomings and mistakes that led to the wrong positioning of Tata Nano as “Worlds Cheapest Car” among the segment it was created for. And how finally after four years of it commercial launch, understanding the inevitability of positioning management repositioned Tata Nano as a "Smart City Car" by focussing on the youth to rejuvenate its image. Key words: Positioning, Repositioning and Tata Nano. 1. Introduction The global auto industry is in the midst of dramatic growth and change, the likes of which it hasn’t experienced since the industry’s inception. In 2010, a shift in the balance of power...
Words: 6332 - Pages: 26
...compact will be half the price of its cheapest model in India as the automaker seeks to win share from Maruti Suzuki India Ltd. The new car, also to be sold in China and Brazil, will be priced in the range of market leader Maruti’s 405,300-rupee ($9,200) Swift compact, Hiroshi Nakagawa, managing director of Toyota’s India unit, said in an interview in Bangalore. Maruti’s 229,000-rupee Alto is the country’s best-selling car, accounting for 13 percent of Indian auto sales. “It has been a challenge to build quality at a lower price,” Nakagawa said. “The Indian car market is one of the toughest markets in the world. Customers and car owners are very cost-conscious.” The Etios highlights Toyota’s struggle to balance sales in low-cost car segments in emerging markets without risking its reputation for quality. The automaker is lowering costs for its new model by increasing the amount of parts purchased in India, with initially 70 percent locally sourced. Engine and transmission production will also start in the nation in 2012. “Bringing procurement cost to a very competitive level is a do or die challenge for our procurement and production teams,” Executive Vice President Yukitoshi Funo said in an interview on Oct. 4. ‘Premium Over Competitors’ The compact arrives as Nissan Motor Co. plans to sell a $3,000 car in India in 2012 supplied by Bajaj Auto Ltd., the country’s second-largest motorcycle maker. Tata Motor Ltd.’s Nano, the world’s cheapest car, is priced at 131,331 rupees. The...
Words: 935 - Pages: 4
...Positioning the Tata Nano Master in Management 2013/2014 Introduction Is important to consider India as a really special market. The cultural background deeply influences all the interactions between the population and with brands. The castes are a very important structure, and although this is changing, it still harder for people for desire big achievements if they are not in the right caste. Also the Tata Group deserves an introduction, being a group founded in 1868 with a trading company by Jamesetji Tata. The Tata Group is responsible for major improvements in India and follows a Code of Conduct that reflects the trust they want to inspire and also their commitment...
Words: 1404 - Pages: 6
...introduced in 2009, it was marketed as a car that would transform the way aspiring consumers in India and other developing countries got around. But the low-cost automotive revolution fizzled. Selling poorly at home and with exports drying up, the Nano has become a cautionary tale of misplaced ambitions and a drag on sales and profit at Tata Motors. It turns out that those climbing into India's middle class want cheap cars, but they don't want cars that seem cheap—and are willing to pay more than Tata reckoned for a vehicle that has a more upmarket image. In this study we will see why TATA is trying remake the "people's car," into the "cool people's car." It has given the car itself a face-lift, adding a stereo, hubcaps and chrome trim, raised the price and started a new marketing campaign to give it more cachet. 1. INTRODUCTION Tata Motors Limited is India's largest automobile company, with consolidated revenues of INR 1,88,818 crores (USD 34.7 billion) in 2012-13. It is the leader in commercial vehicles in each segment, and among the top in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. It is also the world's fifth largest truck manufacturer and fourth largest bus manufacturer. The Tata Motors Group's over 60,000 employees are guided by the mission "to be passionate in anticipating and providing the best vehicles and experiences that excite our customers globally." Tata Nano is a micro car model designed to transport four...
Words: 2101 - Pages: 9
...to increase export by Indian automakers and boost domestic makers to overcome foreign markets. The Indian car markets, as well as their competition the Chinese automakers, have always set their goal to expand their business worldwide. Although China started exporting their products only 8 years prior, India’s low base price has already made the production type very popular. Being close to a few of the fastest expanding markets in Southeast Asia has helped, although Africa had a very successful market. According to a statement from South Africa’s Standard Bank, car sales in the area have increased to 160% since 2008 to roughly half of South Korea’s numbers and 3 times China’s sales. Overall, exports of Indian vehicles reached almost 3 million in the year to April 2012; although almost 2 and a half million of these were 2 and 3 wheeler type vehicles used for motor cross bikes. Tata Motors has been a persistent exporter to the less particular and picky emerging markets. In 2011, they also began selling the Nano in foregin markets, aiming in on parts of South Aferica and Asia. The Nano is one of the world’s most smallest and cheapest in price cars. Towards the end of 2012, Tata Motors announced plans to introduce the Nano to the US, where the price tag in US dollar would be around $3,000; although, they have not yet completely gone through with their plans for this car. Tata Motors have been very successful in in acquiring foregin brands such as the UK-based Jaguar Land Rover...
Words: 1632 - Pages: 7
...a 10 EXECUTIVE SUMMARY Tata Nano is the cheapest car in the world. It is sold in home country India around Rs 1lakh i.e approximately USD 2000. It is manufactured by Tata Motor Limited, the largest automobile company in India. It’s Chairman, Mr Ratan Tata envisions that Tata Nano to become a “People’s car“which is affordable by almost everybody. Tata Nano was first launched in India on 1st April 2009 and expected to be in Indian market by July 2009. Since launching, it has created a huge buzz all over India. Within the first two days of lunching, it has received 5500 booking. The figures keep increasing every day since the launching. What makes Tata Nano so cheap? Basically, by making things smaller, lighter, do away with superficial parts and change the materials wherever possible without compromising the safety and environmental compliance. It is said that Tata Nano has better millage than Toyota Prius and same gas emission as a scooter. Tata Nano will be imported to Malaysia by Tata Industries in parts. It will be assembled in its two factories i.e in Shah Alam, Selangor and Pasir Gudang, Johor Bahru. There are four distribution centres in Peninsular Malaysia i.e. in Kuala Lumpur, Penang, Johor Bahru and Kuantan. All Tata Nano cars will be distributed through these distribution centres only. Order can be made vide these distribution centres or its web site. There are three types of Tata Nano car available i.e. Tata Nano, Tata Nano CX and Tata Nano LX. However, due to hot weather...
Words: 5923 - Pages: 24
...The case discusses the making of Tata Nano, the world's cheapest car, manufactured by India based Tata Motors. On March 30, 2009, Tata Nano was launched with an ex-factory price tag of INR 100,000 (about US$ 2000). The case explains the design and development process of Tata Nano. The car was the result of a five year research and development project carried out by Tata Nano development team. While developing the car, Tata Motors and its suppliers constantly made efforts to reduce the costs while ensuring quality of each and every component including engine, steering, wheels, tires, windshield washing system, gear shifter etc. | | Analysts opined that Tata Nano had created a new segment in the passenger car market. However, they were concerned about the company's lack of capacity to fulfill high demand. They also argued that considering the low margins the company would get, it would take a long time for the project to break even. The case ends with a discussion on the challenges Tata Nano might face in the future. ------------------------------------------------- Excerpts ------------------------------------------------- Background Note The history of Tata Motors dates back to the mid-1900s. In 1945, Tata Motors was incorporated as Tata Engineering and Locomotive Company Limited (TELCO). The company was engaged in manufacturing locomotives and engineering products. Three years later, it launched a steam road roller in association with the UK-based Marshall Sons.....
Words: 1782 - Pages: 8
...Grassroots-level communications 10 e. Create True Stakeholders 11 VI. CONCLUSION 11 VII. BIBLIOGRAPHY 11 VIII. APPENDICES 12 I. INTRODUCTION This paper analyzes the case of India-based Tata Motors and the controversial introduction of the Nano, Tata’s revolutionary inexpensive car. The case represents a study of the non-market forces that influence the decisions made by managers of big firms with an Indian national and global perspective. The paper is divided into 2 parts: The first part (sections II – III) is an overview of this particular case study, and the second part (sections IV – V), presents detailed analyses and recommendations for Tata to become successful in future investments. In addition, a bibliography and some appendices are included to illustrate the content of this study and provide further background on Tata’s Nano. II. CASE SUMMARY In early 2006, Tata Motors announced its intentions to revolutionize the automobile industry through a centralized manufacturing plant. This plant was conceived in order to manufacture the much awaited “1 lakh Rupee car”[1], the world’s cheapest car. The launch of the Nano would not only be a huge coup for Tata...
Words: 4758 - Pages: 20
...10 EXECUTIVE SUMMARY Tata Nano is the cheapest car in the world. It is sold in home country India around Rs 1- lakh i.e approximately USD 2000. It is manufactured by Tata Motor Limited, the largest automobile company in India. It’s Chairman, Mr Ratan Tata envisions that Tata Nano to become a “People’s car“which is affordable by almost everybody. Tata Nano was first launched in India on 1st April 2009 and expected to be in Indian market by July 2009. Since launching, it has created a huge buzz all over India. Within the first two days of lunching, it has received 5500 booking. The figures keep increasing every day since the launching. What makes Tata Nano so cheap? Basically, by making things smaller, lighter, do away with superficial parts and change the materials wherever possible without compromising the safety and environmental compliance. It is said that Tata Nano has better millage than Toyota Prius and same gas emission as a scooter. Tata Nano will be imported to Malaysia by Tata Industries in parts. It will be assembled in its two factories i.e in Shah Alam, Selangor and Pasir Gudang, Johor Bahru. There are four distribution centres in Peninsular Malaysia i.e. in Kuala Lumpur, Penang, Johor Bahru and Kuantan. All Tata Nano cars will be distributed through these distribution centres only. Order can be made vide these distribution centres or its web site. There are three types of Tata Nano car available i.e. Tata Nano, Tata Nano CX and Tata Nano LX. However...
Words: 5922 - Pages: 24
...Application of Porter’s Five Forces Model on Tata NANO Brand Name: Unit Name Unit Code Tutor School Date Introduction The turnover in automotive industry is growing significantly. Companies need to sell their product across borders. To realize this, companies must evaluate the market forces in target markets in order to increase sales. One strategic tool used in evaluating market forces is porters five forces model. This tool highlights the key factors that determine the industry competition and the viability of such a market. The porters five forces model has been evolving with time. The principle ‘’the state of competition in an industry depends on five basic forces’’ (Porter, 2008 P.3) is still relevant. This analysis model covers a wide range of factors affecting the industry. Companies with awareness about their environment are able to make strategic decisions concerning their business. This paper discuses the application of Michael porter’s five forces model by Tata Motors Company on their new product, Tata Nano. Tata motors are the largest automobile company in India with revenues in excess of USD 16 billion in 2011. Tata motors have subsidiary companies and associate companies involved in various industries including mining, oil, manufacturing, and telecommunications. Tata motors have operations in Spain, Korea, Thailand, UK, and South Korea. The paper begins by identifying porters five forces. Second, a brief history...
Words: 3047 - Pages: 13
...1 A Project Report Submitted on the Technology of “Tata Nano Car” As Part of the Course Managing Technology for Competitiveness PREPARED BY Choidup Dorji (113378) Wangmo Chador (113377) Pishenbay Adilbaevich Umirbekov (113417) Nipu Kumar Nath (112889) Christian Riisager (112846) 2 Executive Summary The study of Tata Nano car technology has demonstrated the fact that how a technological revolution has taken place in Automobile sector by the introduction of Tata Nano car in the market. It is 2 feet shorter than a Mini Cooper, has a comical appearance and weighs less than the four passengers it seats. But for the 350-millionplus middle class of India, Tata Nano, the world's cheapest car at $2,000, is a cause for exhilaration and for the first 100,000 lucky customers drawn via lottery, it's a dream come true. A century after Henry Ford put America on wheels with the Model T; the affordable Tata Nano is doing the same to the less privileged of the world. What is now dismissed by many as a "toy car" could soon reveal itself to be the mouse that roared, one of the most transformational consumer products of the century. Roughly 100,000 Indians lose their lives on the road every year, seven times the rate of the developed world. In a country where it is not uncommon to see entire families overflowing a rickshaw or women in saris sitting side-saddle on a bike with small children on their laps, moving one's family from an unsafe bike into a plastic capsule is a...
Words: 4375 - Pages: 18
