CONTEMPORARY ISSUES

A report on
TATA NANO -the people’s car

About Tata Group

Mr. Ratan Tata is the chairman of the TATA
Mr. Ratan Tata is the chairman of the TATA
company
company
The business operations of the Tata group
The business operations of the Tata group
-communications and information
-communications and information
technology, engineering, materials, services,
technology, engineering, materials, services,
energy, consumer products and chemicals
.
energy, consumer products and chemicals
.
The major companies-Tata Steel, Tata
The major companies-Tata Steel, Tata
Motors, Tata Consultancy Services (TCS),
Motors, Tata Consultancy Services (TCS),
Tata Power, Tata Chemicals, Tata Tea, Indian
Tata Power, Tata Chemicals, Tata Tea, Indian
Hotels and Tata Communications
Hotels and Tata Communications
Tata group provides IT solutions and services
Tata group provides IT solutions and services
to customers worldwide -systems integration,
to customers worldwide -systems integration,
hardware manufacturing and educational
hardware manufacturing and educational
services.
services.
INDIA for over 130 years
INDIA for over 130 years
TATA MOTORS
TATA MOTORS
Tata Motors Limited is India s largest
Tata Motors Limited is India s largest
automobile company, with revenues of Rs.
automobile company, with revenues of Rs.
32,426 crores (USD 7.2 billion) in 2006-07.
32,426 crores (USD 7.2 billion) in 2006-07.
It is the leader by commercial vehicles in
It is the leader by commercial vehicles in
each segment.
each segment.
The company is the world s fifth M&HCV
The company is the world s fifth M&HCV
manufacturer, and the world s second largest
manufacturer, and the world s second largest
medium and heavy bus manufacturer.
medium and heavy bus manufacturer.
Annual turnover of over Rs 108 billion.
Annual turnover of over Rs 108 billion.
The company has manufacturing plants at
The company has manufacturing plants at
Jamshedpur, Pune and Lucknow, Bangalore,
Jamshedpur, Pune and Lucknow, Bangalore,
Chennai, Noida, Uttaranchal & Singur, & have
Chennai, Noida, Uttaranchal & Singur, & have
many more manufacturing & R&D units
many more manufacturing & R&D units
abroad.
abroad.
Focusing on new technologies and innovation
Focusing on new technologies and innovation
to drive its business in India and
to drive its business in India and
internationally-
The Nano car
.
internationally-
The Nano car
.

An idea can change

your
LIFE
An idea can change
your
WIFE
An idea can also
change
OTHERS
life

SEEDS OF THE DREAM

SEEDS OF THE DREAM
Mr. Ratan Tata
Mr. Ratan Tata
said,
said,
“
I observed families
“
I observed families
riding on two-wheeler
riding on two-wheeler
the father driving the
the father driving the
scooter, his young kid
scooter, his young kid
standing in front of
standing in front of
him, his wife seated
him, his wife seated
behind him holding a
behind him holding a
little baby. It led me to
little baby. It led me to
wonder for such a car
wonder for such a car
which is safe &
which is safe &
affordable to any
affordable to any
middle class family.”
middle class family.”
MAKING OF TATA NANO
MAKING OF TATA NANO
“
NANO
" is often used to mean small.
“
NANO
" is often used to mean small.
Tata Motors commercially launched Nano on
Tata Motors commercially launched Nano on
March 23, 2009, with bookings from April 9 to
March 23, 2009, with bookings from April 9 to
April 25.The sales of the car will begin in July
April 25.The sales of the car will begin in July
2009, with a starting price of Rs 115,000,
2009, with a starting price of Rs 115,000,
cheaper than the Maruti 800.
cheaper than the Maruti 800.
The car is expected to boost the Indian
The car is expected to boost the Indian
economy, create entrepreneurial-
economy, create entrepreneurial-
opportunities across India, as well as expand
opportunities across India, as well as expand
the Indian car market by 65%.
the Indian car market by 65%.
Described as an eco-friendly "people s car".
Described as an eco-friendly "people s car".
OVERVIEW
OVERVIEW
Nano received media attention due to its
Nano received media attention due to its
targeted low price.
targeted low price.
The
Tata Nano
is a rear-engine,
four-
The
Tata Nano
is a
four-
passenger
,city car
built by Tata Motors,
passenger
,
built by
It was first presented at the 9th annual Auto
It was first presented at the 9th annual Auto
Expo on 10 January 2008, at Pragati Maidan
Expo on 10 January 2008, at Pragati Maidan
in New Delhi, India.
in New Delhi, India.
From Singur to Pantnagar (Uttakrkhand)
From Singur to Pantnagar (Uttakrkhand)
Aimed primarily at the Indian market.
Aimed primarily at the Indian market.
DEAL OF TATA NANO
DEAL OF TATA NANO
A loan of Rs. 9750 Crore at 0.1% simple
A loan of Rs. 9750 Crore at 0.1% simple
rate of interest.
rate of interest.
Repayment of this loan @ 0.1% over 20
Repayment of this loan @ 0.1% over 20
years.
years.
They got 100% exemption on electricity
They got 100% exemption on electricity
duty.
duty.
The 1100 Crores’ Land has been given with
The 1100 Crores’ Land has been given with
high subsidies without any stamp duty
high subsidies without any stamp duty
registration and transfer charges.
registration and transfer charges.
The payment for land would be made in
The payment for land would be made in
eight equal annual instalment at a
eight equal annual instalment at a
compound interest of 8% p.a
compound interest of 8% p.a
TARGET MARKET
TARGET MARKET
The low-cost car is
clearly intended for the
The low-cost car is
clearly intended for the
masses
.
masses
.
For the family of four that would otherwise
For the family of four that would otherwise
ride on a scooter,
ride on a scooter,
Its also attracts the small cars buyers like
Its also attracts the small cars buyers like
Maruti 800, bike riders etc.
Maruti 800, bike riders etc.
FEATURES OF TATA NANO
FEATURES OF TATA NANO
Length
3.1 metres
Length
3.1 metres
Width
1.5 metres
Width
1.5 metres
Height
1.6 meters
Height
1.6 meters
Engine
All-aluminium, Rear Mounted, Rear Wheel Drive
Engine
All-aluminium, Rear Mounted, Rear Wheel Drive
Capacity
623 cc
Capacity
623 cc
Power
33 PS
Power
33 PS
Fuel Injection
Multi Point Fuel Injection (MPFI)
Fuel Injection
Multi Point Fuel Injection (MPFI)
Fuel Type
Petrol, Diesel Version will be later
Fuel Type
Petrol, Diesel Version will be later
Body Type
Sheet Metal
Body Type
Sheet Metal
Seating Capacity
04 (Four)
Seating Capacity
04 (Four)
20-22 Kmpl (City drive)
20-22 Kmpl (City drive)
Mileage
Mileage
26 Kmpl (Highways)
26 Kmpl (Highways)
Top Speed
75 K.M
Top Speed
75 K.M
Emission Norms
Euro-IV, Bharat Stage-III compliant
Emission Norms
Euro-IV, Bharat Stage-III compliant
Safety Norms
Frontal Crash Tested
Safety Norms
Frontal Crash Tested
Versions
One Standard and Two Deluxe
Versions
One Standard and Two Deluxe
MODEL VERSIONS
MODEL VERSIONS
Basic Tata Nano Std priced at 1,23,000
Basic Tata Nano Std priced at 1,23,000
Rupees
Rupees
Deluxe Tata Nano CX at 1,51,000 Rupees has
Deluxe Tata Nano CX at 1,51,000 Rupees has
air conditioning;
air conditioning;
Luxury Tata Nano LX at 1,72,000 Rupees has
Luxury Tata Nano LX at 1,72,000 Rupees has
air conditioning, power windows and central
air conditioning, power windows and central
locking
locking
TECHNICAL SPECIFICATIONS
According to Tata Group’s Chairman Rata Tata,
According to Tata Group’s Chairman Rata Tata,
the Nano is a :
the Nano is a :
33 PSI (33 hp/24 kW) car with a
33 PSI (33 hp/24 kW) car with a
623 cc rear engine and rear wheel drive, and
623 cc rear engine and rear wheel drive, and
has a
has a
fuel economy of 4.55 L/100 km (21.97 km/L,
fuel economy of 4.55 L/100 km (21.97 km/L,
51.7 mpg (US), 62 mpg (UK)) under city road
51.7 mpg (US), 62 mpg (UK)) under city road
conditions, and 3.85 L/100 km on highways
conditions, and 3.85 L/100 km on highways
( 25.974 km/L, 61.1 mpg (US), 73.3 mpg
( 25.974 km/L, 61.1 mpg (US), 73.3 mpg
(UK)).
(UK)).
It is the first time a two-cylinder non-opposed
It is the first time a two-cylinder non-opposed
petrol engine will be used in a car with a
petrol engine will be used in a car with a
single balance shaft.
single balance shaft.
Compressed engine.
Compressed engine.
Eco-friendly models and initiatives.
Eco-friendly models and initiatives.
Electric Version
Electric Version
COST CUTTING FEATURES
The Nano s boot does not open, instead the
The Nano s boot does not open, instead the
rear seats can be folded down to access the
rear seats can be folded down to access the
boot space.
boot space.
It has a single windscreen wiper instead of
It has a single windscreen wiper instead of
the usual pair.
the usual pair.
Some exterior parts of it are glued together,
Some exterior parts of it are glued together,
rather than welded.
rather than welded.
It has no power steering.
It has no power steering.
Its door opening lever was simplified.
Its door opening lever was simplified.
It has 3 nuts on the wheels instead of the
It has 3 nuts on the wheels instead of the
statutory 4 nuts.
statutory 4 nuts.
It only has 1 side view mirror
It only has 1 side view mirror
SUPPLIERS TO TATA
NANO
Bosch 8. Freudenburg
Bosch 8. Freudenburg
1.
1.
2. Caparo 9.GKN
2. Caparo 9.GKN
3. Continental 10. Itw Deltar
3. Continental 10. Itw Deltar
4. Delphi 11. INA
4. Delphi 11. INA
5. Denso 12. Johnson
5. Denso 12. Johnson
Controls
Controls
6. Fag 13. Mahle
6. Fag 13. Mahle
7. Ficosa 14. Saint gobain
7. Ficosa 14. Saint gobain

SUPPLIERS TO TATA NANO

A
German based automotive company. It supplies Gasoline injection system,
Starter.
A Europe based company. It supplies Inner structural panels.
It supplies Rear-view mirrors, interior mirrors, manual and CVT shifters, washer
system
An American corporation. It supplies break systems.
U.S based company. It supplies seating systems.
Europe based company. It supplies fuel level sensor, gasoline fuel supply system
.
Issues & Controversies
Tata s planned manufacturing unit for the car
in Singur, West Bengal, where the state
government of West Bengal has allocated
997 acres (4.03km²) to Tata Motors
Required fertile agricultural land and the
expropriation and eviction of 15,000
peasants and agricultural workers.
September 2,2008 Tata Motors announced
that they have suspended work at Singur.
On October 2 ,2008 Tata Motors announced
that they are pulling out of Singur.
On Oct. 7 2008, it was announced that the
Chief Minister of Gujarat, Narendra Modi had
signed an MOU -for allocating land for in
Sanand in Ahmedabad district of Gujarat.
TATA NANO VIEWED -PROCESS
FOR NEW PRODUCT
DEVELOPMENT
Idea Generation
Idea Generation
Idea Screening
Idea Screening
Business Analysis
Business Analysis
Development
Development
Test Marketing
Test Marketing
Commercialization
Commercialization
Concept Testing
Concept Testing
Idea Screening
Will the customer in the target market
benefit from the product?
What is the size and growth forecasts
of the market segment/target market?
What is the current or expected
competitive pressure for the product
idea?
What are the industry sales and
market trends the product idea is
based on?
Is it technically feasible to
manufacture the product?
Will the product be profitable when
manufactured and delivered to the
customer at the target price?
Concept Development and
Testing
Develop the marketing and engineering
Develop the marketing and engineering
details
details
Who is the target market and who is
Who is the target market and who is
the decision maker in the purchasing
the decision maker in the purchasing
process?
process?
What product features must the
What product features must the
product incorporate?
product incorporate?
What benefits will the product
What benefits will the product
provide?
provide?
How will consumers react to the
How will consumers react to the
product?
product?
How will the product be produced
How will the product be produced
most cost effectively?
most cost effectively?
Prove feasibility through virtual
Prove feasibility through virtual
computer aided rendering, and rapid
computer aided rendering, and rapid
prototyping.
prototyping.
Testing the Concept by asking a sample of
prospective customers what they think of
the idea- Choice Modelling.
Business Analysis
Estimate likely selling price based upon
competition and customer feedback
Estimate the cost of the project
Estimate profitability and breakeven point
Beta Testing and Market
Testing
Produce a physical prototype or mock-up
Test the product (and its packaging) in
typical usage situations
Conduct focus group customer interviews
or introduce at trade show
Make adjustments where necessary
Produce an initial run of the product and
sell it in a test market area to determine
customer acceptance
Technical Implementation
Resource estimation
Engineering operations planning
Department scheduling
Supplier collaboration
Logistics plan
Resource plan publication
Program review and monitoring
Contingencies
Commercialization
Launch the product
Produce and place advertisements and
other promotions
Fill the distribution pipeline with product
IMPACT OF INFLATION
Introducing the car with an artificially low
Introducing the car with an artificially low
price through government subsidies and tax-
price through government subsidies and tax-
breaks
breaks
Forgoing profit on the car
Forgoing profit on the car
Using vertical-integration to artificially boost
Using vertical-integration to artificially boost
profits on cars at the expense of their
profits on cars at the expense of their
materials industries
materials industries
Partially using inexpensive polymers or
Partially using inexpensive polymers or
biodegradable plastics instead of a full metal-
biodegradable plastics instead of a full metal-
body
body
Raising the price of the car
Raising the price of the car
TATA NANO IN RELATION TO
THE MARKETING MIX
Product Mix-
product features, design etc.
product features, design etc.
Branding Strategies-
umbrella branding
strategies
small size,small price small income
group, small family
Pricing strategies-
Penetration pricing, Low
pricing policy with minimum profit margin.
Promotional Activities-
Publicity as “One lakh
car” ,Auto expo 2008,New Delhi & Geneva, print
& electronic media, Singur violation

SOCIAL IMPACT OF TATA NANO

Living standard up gradation
Living standard up gradation
Increased safety
Increased safety
1 million cars per year
1 million cars per year
Inadequate infrastructure
Inadequate infrastructure
Traffic congestion
Traffic congestion
Parking problem
Parking problem
Price hike in real estate.
Price hike in real estate.
ARE WE REALLY PREPARED
ARE WE REALLY PREPARED
FOR IT ?
FOR IT ?
ECONOMICAL IMPACT
Boom in the banking and financial sector
Competitive advantage
Mass Selling and production
Employment
Energy security issue
ENVIRONMENTAL
&TECHNICAL IMPACT
Pollution
Pollution
Global warming
Global warming
Petroleum scarcity
Petroleum scarcity
Non-biodegradable waste
Non-biodegradable waste
CAN WE AFFORD THIS DISASTER
CAN WE AFFORD THIS DISASTER
Automobile revolution
Automobile revolution
Mass production
Mass production
Safety will be compromised
Safety will be compromised
R&D for low cost editions
R&D for low cost editions
SWOT ANALYSIS
STRENGTHS:
STRENGTHS:
Low Price & stylish
High fuel effeciency
Brand name,
First innovation
35 Patents for innovation
Environmental friendly- Green House Effect
Variometric Gear System- Magnifies Torque
Tested successfully for crumple zones

Weaknesses
Weaknesses
Fiber body,
Low suspension power,
Low engine capacity,
Light vehicle,
Not suitable fir hilly areas
Less Boot space
Poor engine cooling & hence over heating
No headlight levelers
No modern facilities- ABS, PS, AC
Opportunities
Opportunities
Bikers can be motivated
Bikers can be motivated
Created a Niche Market
Created a Niche Market
Creates Employment
Creates Employment
Auto Finance
Auto Finance
Diesel & Electric Variant
Diesel & Electric Variant
Developing Low Price Engine Oil
Developing Low Price Engine Oil
Threats
Threats
New Competitor- Bajaj, Honda Siel, GM etc.
New Competitor- Bajaj, Honda Siel, GM etc.
REVA an electric car
REVA an electric car
Traffic Congestion
Traffic Congestion
Government may increase taxes in metros
Government may increase taxes in metros
Rising cost of raw material
Rising cost of raw material
Reducing parking space
Reducing parking space
Challenges to Tata Nano
Political issues in Gujarat.
Political issues in Gujarat.
Fuel price hikes is the most important challenge
Fuel price hikes is the most important challenge
for Nano.
for Nano.
Increase in material cost like steel and tires.
Increase in material cost like steel and tires.
Effect on Indian Economy
Effect on Indian Economy
Expand the Indian car market by 65%,
according to rating agency CRISIL.
The low price makes the car affordable for
families with incomes of Rs 1 lakh [1,00,000]
per annum
The increase in the market is expected to
push up car sales by 20% over the previous
year. “
Thus, the Indian Economy is expected to
remain strong and grow in 2009

FUTURE OF TATA NANO

"
Dream-dream and dream, because
dream gives vision, vision gives
thoughts and finally thoughts lead to
the action
“-India s former President Dr.
A.P.J. Abdul Kalam
Ratan Tata 2003, dreamt of producing a safe,
affordable Car for the common man

NANO definitely helps to come true for Middle Man’s Dream

It truly proved to be the cheapest car of the industry
•
Bibliography
Bibliography
www.tatamotors.com
www.tatamotors.com
www.tatanano.com
www.tatanano.com
www.economictimes.com
www.economictimes.com
Business Standard
Business Standard
Times of India
Times of India