TATA nano

The ONE

lakh car that drives ONE

billion dreams

Case Study on Tata Nano

FACULTY: TARUN GUPTA

Presented by : ABHAY PRATAP SINGH BBA(3)-A BB2011005 Invertis University 2

About Tata Motors

History: Established in 1945 . India's largest automobile company, with consolidated revenues of Rs.70,938.85 crores (USD 14 billion) in 2008-09 . Over 4 million Tata vehicles ply on Indian roads. The first company from India's Engineering Sector to be listed in the New York Stock Exchange (September 2004)

(contd)
The company's manufacturing base in India is spread across:1) Jamshedpur (Jharkhand) 2) Pune (Maharashtra) 3) Lucknow (Uttar Pradesh) 4) Pantnagar (Uttarakhand) 5) Dharwad (Karnataka).

Tata Motors has operations in the UK, South Korea, Thailand and Spain as well.
4

Significant Mergers & Acquisitions

Jaguar Land Rover, a business comprising the two iconic British brands that

was acquired in 2008.

In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea's

second largest truck maker.

In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed

Spanish bus and coach manufacturer, and subsequently the remaining stake in

2009.
In 2006, Tata Motors entered into joint venture with Thonburi Automotive

Assembly Plant Company of Thailand .

5

Vision of the Company

I. II. III.

Best in the manner in which we operate. Best in the products we deliver. Best in our value system and ethics.

Idea Generation

I saw families riding around on scooters with kids standing up and the mother carrying a baby and sitting pillion and decided to do something about it. It started as a quest for an affordable transportation solution. RATAN TATA
7

Tata Nano Project

Lead by Girish Wagh (General Manager, Tata Motors Ltd.) Began in 2003 Objective was to create very low cost transportation system with four

wheels The car was designed at Italy's Institute of Development in Automotive Engineering A team of 500 engineers worked on it Faced political obligations in Singur Shifted to Pantnagar, Uttarakhand Came out with worlds cheapest car in July, 2009 Till date 10,518 units on road

What Nano offers..?

A roomy passenger compartment with generous leg space and

head room.
Seating capacity of four.
Safety performance exceeds regulatory requirements in India. Eco friendly High fuel efficiency.

10

SWOT Analysis
STRENGTHS First innovation set a benchmark Cheapest & Stylish Eco-friendly green house effect Fuel-efficiency & engine Space Internal - 21% more than M-800 External - 8% less than M-800 7 6 5 5 5 +28 OPPORTUNITIES Diesel & electric variant Created a niche market Recession Parking space 3 4 4 5 +16 THREATS Traffic congestion Security not sure Bad impression due to late delivery in market Competitors Bajaj, Renault & Nissan Rising cost of raw material -3 -4 -2 -2 -7 -18 WEAKNESS No passenger side mirror Low quality seat Poor engine cooling & hence overheating Not fit for hilly terrain -4 -3 -2 -3 -12

Overall

+44

-30

Overall Final Rating = +28+16-12-18 = +14

11

Tata Nano - Specifications

Length:- 3.1 m Wide:- 1.5 m Height:- 1.6 m Weight:- 600 kg Mileage:- 20 km/l Fuel tank:- 15 l Engine:- 624 cc Ground clearance:180mm Gear box:- 4-speed

12

Compare.

Tata nano
Engine:-624cc, petrol.
Transmission:-4 forword,1

Maruti 800
Engine:-796cc, petrol.
Transmission:-4 forword,1

reverse,manual. Max power:-34.5 bhp @ 5250 rpm. Performance:- 0-60 kph:8.66 sec and 0-100 kph:31.3 sec. Top speed:- 70 km/h. Mileage(overall):- 20 km/l. Price:- 123360 to 172360 (Ex showroom, Delhi)

reverse, manual. Max power:-37 bhp @ 5000 rpm. Performance:- 0-60 kph: 8.1 secs. And 0-100 kph:26.3 secs. Top speed:- 130 kmph. Mileage(overall):- 16 kmpl. Price:- 1.97 lakh onwards.

13

Questions & Answers

Q1 Do you agree that Tata would be able to maintain the committed price?

14

A.1
No. It would be difficult for Tata Motors to maintain the committed price of Nano because of: Rising prices of steel and other raw materials from 13%

to 23% since Aug08(Development Phase).

Inclusion of total vehicle crash testing system

comprising airbags, antilock breaking system will increase the price.

15

(contd)
Just delivering to complete the promise. Loss of about 1200 crores due to shifting of

manufacturing unit from Singur to Pantnagar. Not compliant to Euro IV emission standards. Current price itself exceeds 1 lakh.

16

(contd)
Because of the already mentioned reasons Tata Motors were left with the following choices: Introducing the car with an artificially low price through government subsidies and tax-breaks forgoing profit on the car. Partially using inexpensive polymers or biodegradable plastics instead of a full metal-body. Rising the price of the car.

17

Price list (Ex showroom price in

Delhi)

TATA nano std (BS3) TATA nano cx solid paint (BS3) TATA nano cx metallic paint (BS3)

Rs-123360 Rs-148360 Rs-151360

TATA nano LX metallic paint (BS3)

Rs-172360

18

19