...net/publication/228143324 The Tata Nano: The People's Car ARTICLE · JUNE 2009 CITATION READS 1 709 3 AUTHORS, INCLUDING: Paul Farris University of Virginia 115 PUBLICATIONS 1,044 CITATIONS SEE PROFILE Available from: Paul Farris Retrieved on: 08 January 2016 UVA-M-0768 Rev. Feb. 2 2011 24, THE TATA NANO THE PE T O: EOPLE’S CAR It was one of the longest t f t-awaited an most talke nd ed-about aut tomobile deb in India On buts a. January 10, 2008, Ta Motors unveiled its (U.S. dollar USD2,50 car1 (also called “Rs1 lakh ata u rs) 00 car” or “t people’s car”) at the ninth Auto Expo in New Delhi. The Tata Nano brought a m the s w o media blitz and a crush of onlookers th required top-level sec o hat t curity. Woul the car liv up to its h ld ve hype? ignal a new era for the sm car mar e mall rket in India How could Tata ensur the a? re And did its launch si w ofitable? product would be pro Widely touted as the chea W d apest car in the world, th Nano was scheduled to be availab in t he s ble September 2008. In addition to paying (Indian rupees) IN lakh— a p INR1 —equivalent t INR100,0 to 000— buyers would also have to pay 12.5% valu w h ue-added tax along wit charges s x th such as road and d transport tation taxes. The two-cy ylinder gaso oline-powere version w ed would debut first; the d t diesel versions would soon follow. The Nano wa one of th world’s most fuel-eff ...
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...THE TATA NANO: THE PEOPLE’S CAR (ABRIDGED) Source: © User:High Contrast/Wikimedia Commons/CC-BY-SA-3.0. It was one of the longest-awaited and most-talked-about car debuts in India. On January 10, 2008, Tata Motors unveiled the Nano, a USD2,5001 automobile referred to as “the people’s car.” Would it live up to the hype? And did its launch signal a new era for the small car market in India? How could Tata ensure the product would be profitable? Measuring 3.1 m by 1.5 m, the Nano displaced Maruti Udyog’s Maruti 800 as the world’s smallest car, yet its seating room was 21% greater than the 800’s—providing ample room for four adults. The Nano was also one of the world’s most fuel-efficient cars, getting 52 mpg in the city and 61 mpg on the highway. Touted as the cheapest car in the world, the Nano was scheduled to be available in September 2008. 1 USD = U.S. dollar; INR = Indian rupee. Tata and India’s Automobile Industry Tata Engineering and Locomotive Co. Ltd. was established in 1945. In 1954, the company launched its first automobile; between 1954 and 1969, it collaborated with Daimler Benz to produce commercial vehicles. By the 1990s, the company had entered the passenger vehicle market. In 2004, Tata Motors acquired the Daewoo Commercial Vehicle Co. Ltd., Korea’s second-largest truck manufacturer, and became the first Indian company to be listed on the New York Stock Exchange. The next year, it acquired a 21% stake in a Spanish bus manufacturer, and in May 2008,...
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...UVA-M-0768 Rev. Feb. 2 2011 24, THE TATA NANO THE PE T O: EOPLE’S CAR It was one of the longest t f t-awaited an most talke nd ed-about aut tomobile deb in India On buts a. January 10, 2008, Ta Motors unveiled its (U.S. dollar USD2,50 car1 (also called “Rs1 lakh ata u rs) 00 car” or “t people’s car”) at the ninth Auto Expo in New Delhi. The Tata Nano brought a m the s w o media blitz and a crush of onlookers th required top-level sec o hat t curity. Woul the car liv up to its h ld ve hype? ignal a new era for the sm car mar e mall rket in India How could Tata ensur the a? re And did its launch si w ofitable? product would be pro Widely touted as the chea W d apest car in the world, th Nano was scheduled to be availab in t he s ble September 2008. In addition to paying (Indian rupees) IN lakh— a p INR1 —equivalent t INR100,0 to 000— buyers would also have to pay 12.5% valu w h ue-added tax along wit charges s x th such as road and d transport tation taxes. The two-cy ylinder gaso oline-powere version w ed would debut first; the d t diesel versions would soon follow. The Nano wa one of th world’s most fuel-eff T as he m fficient cars, getting 52 miles per g gallon (mpg) in the city and 61 mpg on the highwa (22 km pe liter and 2 km per lit respectiv d n ay er 26 ter, vely). Measurin 3.1 meters by 1.5 meters, it dis ng m splaced Mar Udyog’s Maruti 80 as the wo ruti s 00 orld’s smallest...
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...THE INDIAN AUTOMOBILE SECTOR- HPL PROJECT Introduction The term automotive was created from Greek autos (self), and Latin motivus (of motion) to represent any form of self-powered vehicle. The Indian automotive industry has emerged as a 'sunrise sector' in the Indian economy. India is emerging as one of the world's fastest growing passenger car markets and second largest two wheeler manufacturer. It is also home for the largest motor cycle manufacturer and fifth largest commercial vehicle manufacturer. The automotive industry in India is one of the largest in the world and one of the fastest growing globally. India's passenger car and commercial vehicle manufacturing industry is the sixth largest in the world, with an annual production of more than 3.9 million units in 2011.[1] According to recent reports, India overtook Brazil and became the sixth largest passenger vehicle producer in the world (beating such old and new auto makers as Belgium, United Kingdom, Italy, Canada, Mexico, Russia, Spain, France, Brazil), growing 16 to 18 per cent to sell around three million units in the course of 2011-12.[2] In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand.[3] In 2010, India beat Thailand to become Asia's third largest exporter of passenger cars. As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the...
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...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...
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...price of the product/services is the single most defining factor that influences the customer's buy decision. Hence to maintain low cost, companies consistently has to make manufacturing improvements to keep the business competitive. This requires additional capital expenditure which tends to eat up company's earning. On the other hand if no one else can provide products/ services the way you do you have a monopoly. Lets try to explore these points in more detail. Look at the current senario, the small car market in India is very competitive with players like Maruti Suzuki, Tata Motors, Huyndai etc. which was preety much dominated by Maruti. But with launch of Nano the 1 lakh car the whole momentum of the market has shifted. Now to be competitive in market other companies have to either slash rates of their existing model or have to go back to the drawing board and build again. Now look it from Tata Motor's perspective what price they had to pay to gain such advantage. Building new production plant, raw material & equiptments, labor etc. which accounts to huge capital...
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...following global accepted quality measures at a lower cost. This makes it a perfect destination for production-outsourcing of automobiles. 4. The availability large talent pool at cheap prices. 5. Availability of cheap R&D; IITs be deemed as centers of excellence for automobile research and access to latest technology. WEAKNESS The biggest and probably the only weakness of Indian automobile Industry is its slow growth in Research and Development most companies (barring TATA and M&M) do not have adequate spending on R&D in comparison to their turnover. Maruti for instance is completely dependent upon Suzuki for any new technology all of the successful cars sold by it were developed by Suzuki; Swift, A-Star (which replaced alto in other markets as New Alto), SX4, Ritz etc. This weakness will soon become history as Indian companies are catching fast in R&D and are showing strong signs of success e.g.: M&M Scorpio Hybrid, TATA Nano. Besides R&D the other weakness is political hostility (TATA Nano Singur plant) but is only a regional problem of less developed states or pro-communist states, states like Gujarat, Maharashtra are proving to be a haven for Industries.12 Page 26 - http://www.planningcommission.nic.in/aboutus/committee/wrkgrp11/wg11_automaive.pdfPage | 31 • 33. OPPOURTINITES 1. India has a large pool of cheap talent which can be utilized in decreasing the R&D expenses. 2. India has potential to become manufacturing and export hub with it cheap labor availability...
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...Company Profile Tata Motors Limited is India’s largest automobile company. In the years of 2008-09, the company produced over USD 14 billion in consolidated revenues. Tata is now the leader in leader in commercial vehicles in each segment. The company also boasts of producing the top three passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. Tata is the fourth largest truck manufacturer and second largest bus manufacturer in the world. Established in 1945, the company now employs 24,000 people, all led by one vision. A strategic alliance with Fiat in 2005 has allowed Tata Motors to set up an industrial joint venture with Fiat Group Automobiles to produce both Fiat and Tata cars and Fiat Power trains. A recent plant has been established at Sanand. The company also distributes and markets Fiat brand cars in India. Now seen as an international automobile company, Tata Motors was the first company from India’s engineering sector to be listed in the New York Stock Exchange in September of 2004. The company has expanded its operations to parts of the United Kingdom, South Korea, Thailand and Spain. The operations include Jaguar and Land Rover, two of Britain’s iconic brands that were acquired in 208. In 2004 the company had previously acquired the Daewoo Commercial Vehicles Company, the largest truck manufacturer in South Korea. The acquisition of Hispano Carrocera, a Spanish bus manufacturer, took place in 2005. Tata Motors enter into...
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...Tata Nano Case „5 C Analysis and STP“ For Marketing Strategy & Customer Management By: Sebastian Schmickler As of 20. March 2013 Customer The core benefit for the potential customer can be seen in the extremely cheap availability of a 4 seats offering individual transportation opportunity with a certain level of safety and comfort. This benefit will satisfy the pursuit of an affordable, individual and independent way to travel and transport things. The Customer therefore can be defined as individual that only can afford a limited small amount of money in order to buy a car (smaller household income). This leads to the conclusion that the potential buyer can be seen as part of the lower income class of the population (Indian middle class). The buyer of a Tata Nano will additionally generate in interest for those who search for more safety for example while transporting family members from a place to an other. Looking at this concern a consumer is a person not having a similar opportunity for same transportation. This can result from the absence of a car or the use of a scooter or bike (public transportation in some region can be seen as dangerous too). The customer could likewise have the need for a more convenient alternative to travel (for example during rainy or cold weather conditions). Company As core competence of Tata Motors Ltd. (Tata Group)(former TELCO) the good worldwide experience of manufacturing cars must be taken into account...
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...District, West Bengal, India. This place was practically unheard of and gained international media attention after Tata Motors proposed the idea of setting a factory to manufacture the world’s cheapest car- The Tata Nano. It was supposed to be priced at Rs 1, 00,000 and the car was scheduled to be rolled out by 2008. The Communist Party of India (Marxist) had just come to power at that time, (May 18, 2006). The State Government had allowed Tata to take over 997 acres of farmland in Singur to build its factory. Buddhadeb Bhattacharjee, the then Chief Minister of West Bengal, wanted Tata to go ahead with the Tata Nano project in his state citing reasons of industrialisation and State development. West Bengal was viewed as an anti- industrialised state and Buddhadeb Bhattacharjee wanted to reform that image. However, this act was received with much opposition from the activists, the displaced land owners and the opposition parties in Bengal. (Singur Tata Nano Controversy, 2012) The government had acquired 1200 acres of land which included 997 acres from 13000 'unwilling' farmers. These 997 acres of land was leased to the Tata Motors to set up the Nano plant. The government had offered a price which was better than that in Nandigram and also provided compensation which had included the sharecroppers also. There were six sites offered by the state government to Tata Motors. The company had selected Singur as the chosen site. Singur is the most fertile belt in that region. Almost...
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...SHARMA-10BSPHH010936 * SUNIL Kr. YADAV-10BSPHH011074 * SAURABH TRIVEDI-10BSPHH011076 * NILABH-10BSPHH011081 * SHAUNAK GOSWAMI-10BSPHH010718 INDIAN AUTOMOBILE INDUSTRY (A MACRO AND MICRO ANALYSIS) With a Focus on TATA Motors | FINAL REPORT (Business Strategy) | IBS-2011 BS-SEC I (Group-3) SHINY ACHARYA-10BSPHH010733 SHWETABH SRIVASTAVA-10BSPHH010766 SUNIL Kr. YADAV-10BSPHH011074 SAURABH TRIVEDI-10BSPHH011076 NILABH-10BSPHH011081 RAGHINI SHARMA-10BSPHH010936 SHAUNAK GOSWAMI- | Table of Contents Indian Automobile Industry: An Overview 3 A. Macro analysis of Indian Automobile Sector 3 1. PESTEL Analysis 3 I. Political and Legal Factors 3 II. Economic Factors: 4 III. Social Factors: 5 IV. Technological Factors 6 V. Environmental Factors 6 2. Key Drivers of Growth and Change 6 3. Porter’s Diamond 7 I. Factor Conditions 7 II. Demand Conditions 7 III. Related and Supporting Industries 8 IV. Firm Strategy, structure and rivalry 8 B. Micro-analysis of Automobile Industry 9 1. Porter’s 5 Force Framework 9 2. Dynamics of Competition 9 C. Competitors & Markets 10 1. Strategic Groups 10 2. Market Segments 13 3. Identifying Strategic Customer 16 D. Strategic Gaps 17 E. Tata Motors 19 1. Introduction 19 Mission Statement 19 Vision Statement 19 Goal 19 Core Values 19 Market share 19 Revenue and profits 20 Domestic growth 20 2. SWOT Analysis 22 3. Strategies 24 4. Projection...
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...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, due...
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...Industry landscape and Outlook Canada is more famous for its auto assembling and manufacturing instead of having its own auto brands. It produces cars along with hundreds of parts mostly for automakers headquartered in United States and Japan. According to Industry Canada, Ford, GM, Chrysler and Toyota are a few of the top brands currently made in Canada. A more comprehensive list is shown below. Vehicles made in Canada 2014 2014 was a wonderful year for auto companies that have a presence in Canada. According to Statistics Canada and RBC, domestic new vehicle sales were projected to have a record of 1.86 million units in 2014 (1.78 million units in 2013). This is a huge improvement compared to 1.48 million in 2009 as a result of the financial recession. Looking ahead to 2015, consensus is that Canadian sales are still likely to grow at a moderated rate. This positive outlook comes from: * Interest rates are still historically low after central bank surprisingly cut the rate at the beginning of this year. And there is possibility that the central bank will do the same thing again at any point of this year if economics condition is not promising. * Moreover, even though people are spending more on autos, auto purchases over total household incomes are still below pre-recession levels. We expect to see conversion in the future. * Labor markets have shown signs of strengthening recently suggesting that an underlying improving trend into 2015. As a result...
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...| Case 3 Critique | 21 July 2014 | | Pt 1 Strategy Formulation 1. Business and Corporate-level strategies a. Business-level strategies Cost leadership strategy is utilized by Tata Motors, producing their goods in India at a low cost. The low costs of the Nano allowed consumers to own a vehicle when there was no way prior. b. Corporate-level strategies Tata Motors possess over 90 establishments in 80 countries. The globally owned organization allows for a large amount of diversification. 4 P’s framework-product, price, place, promotion a. Position: The mission is to provide vehicles that will appeal to the global consumer. Values of Tata Motors are customer satisfaction, innovation and integrity, while the vision is to have a valued product and provide excellent service. b. Priority: Priorities include low cost, quality vehicle, expand the product line to include a luxury vehicle, and to increase capacity globally. c. Payment: Investment of a Spain organization to gain shares and technology as well as merge with Jaguar/Land Rover to produce a luxury vehicle. d. Performance: Improve image of the organization and to increase profits as expansions continue to grow globally. Key Questions Key Questions | Option | Decision Criteria | Pros | Cons | Purchase of HCPurchase of JLR | Purchase shares, brand rights and technologyTo add a luxury line to the products | Market/competitionCost/benefitsMarket/competitionCost/benefits | Increase product...
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...Tata Nano - Porter’s Five Forces Businesses need to understand the forces affecting them. These competitive forces offer a framework for every firm showing them how they can influence competition in the future. (PORTER 2008, p. 80) They also indicate the attractiveness of a given industry. (PORTER 2008, p. 80) The first part of these five forces consists of the rivalry of existing competitors. Which competitors are taken into consideration depends on the scope of competition the firm is defining. Many firms struggle because they do not define the industry broadly enough they are doing business in. (LEVITT 1960, p. 45) In the case of Tata competitors consist of manufacturers of motorcycles and scooters. According to the case study, there were 7 million sold in 2007. Another competitor is BAJAJ Auto that is also developing a low-price car. At the moment, the rivalry is not very strong for this price-class but success of the Tata could change that. As this market segment will grow, there might be new market entrants, e. g. European, American or other Asian car manufacturers that find it attractive to produce for the Indian market. Nevertheless, there are a few entry barriers like financial resources or capacity of the factories, e. g. to realize economies of scale. The third force is the bargaining power of suppliers. Like all car manufacturers, Tata is dependent from suppliers of various parts. On the one hand, the suppliers’ bargaining power is high because their parts...
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