Case Study: Tata Motors

2344 Words10 Pages
1.0 Source Problems Tata Motors Limited, a subsidiary of the Tata Group, is one the largest automobile players in India. In 2008, the market saw the reveal of the Tata Nano, which was introduced as India’s first low-priced People’s Car. The retail price was set at $2,500, catering to the mainly the low-income segment of the market. (Profile, 2013). During this time of economy unrest, consumers will be more cautious and controlled over the usage of their disposable income, with preference for a lower-priced alternative. Even though being seen as a brand for affordable cars, Tata Motors seemed to be taking a hit on its brand appeal, with a slowdown in consumer demand for the Nano (Muralidhar, 2013). 2.0 Secondary Problems 2.1 Perceived Quality…show more content…
Instead, Tata Motors placed the blame on the supplier, stating that the emission of smoke from the Nano was due to a faulty electrical switch. What Tata Motors did instead was to arrange for a separate supplier instead and conduct unnecessary tests so as to avoid mass recall or redesign. Outbreaks of fire Such poor performance worsened with cases of fire outbreaks. In 2010, a Nano was reported to have caught fire moments after been driven out of the showroom. Even with such publicity of the fire outbreaks, Tata Motors still blatantly insisted that the Nano design was faultless with a safe product design. In reply to the fire outbreaks, Tata Motors provided optional safety upgrade features that were complimentary to existing owners but they made it clear that this is only a value-added service and emphasised that it was not a product recall. Although Nana Motors claimed that the Nano is safe to use and without faults, the outbreaks of fire were still frequently occurring and the total number of fire incidents reported went up to eight cases in 2011. Till 2011, emission of smoke was still reported as a symptom before it escalated into a

More about Case Study: Tata Motors

Open Document