Executive Summary Tata Motors, the General Electric of India is a conglomerate with a commanding presence in a vast industries across India and globally. In January 2008, Tata introduced to the Indian public it’s ultra cheap car “Nano”. The expected retail price for the Nano was expected to be as little as USD2,500 and would cater for the fast growing middle class segment of the Indian population. Tata Motors was set to change the face of the automobile industry in India. This was however met with some challenges, given the economic environment of India and thereby causing a delay of the launch by six months. The introduction of the “People’s car” created a new category/ trend of ultra cheap cars which then led to other auto makers …show more content…
Choksey Shares & Securities Pvt Tata Motors by introducing Nano has created a new category in the auto industry ie ‘ultra-low-cost-vehicle’. In the auto industry today we see automakers rolling out (not so cost friendly) smart cars, hybrid cars etc but we have yet to see a car that fits a low budget, environmentally friendly and fuel efficient (before the Nano). The advent of the Nano in the auto industry has now set a new benchmark for other auto industry leaders to follow in terms of innovation. Tata Motors thought competitors to first listen to what the people need, their affordability and only then work towards meeting that on an innovative platform. Following Tata’s footsteps, Ford, Nissan, Volkswagen, Hyundai and General Motors are working to reshape their operations and scurrying to introduce their own their own budget cars. Do you agree that there is a future for low budget cars like Nano in other markets besides India? Do you think Tata Motors is going in the right direction by trying to develop its low cost Nano models adapted to European and U.S. markets? How could you evaluate likelihood of success of the Nano on the U.S. market? What should Tata Motors do to win American consumers? In countries like India, China and Brazil we can see a rapid economic growth where lower priced cars are often best sellers due to its affordability. The success and future of low budget cars lie in these countries where growth
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TATA motors has been a pioneer in indian automobile sector for more than the 60 years, established in 1945 ,today it is valued at over USD 40 Billion.The company now has its presence in almost every continent around the globe ,in about 175 countries.It currently caters to 3 market segments The passenger cars, Utility vehicles and commercial vehicles
Several factors have affected how the American auto industry now positions itself on the world market, and big changes have been made to reflect this new direction. The introduction of new technologies in vehicles, the growing market for cars in new developing markets, the impact of the industry on the environment, legislative responses and demands, as well as the increased expectations from consumers, are some of the factors. More international cars are being designed, manufactured and bought by American consumers and exported to foreign markets today than those exclusively manufactured by American companies, redefining the American auto industry, while having a positive impact on its economy. International brands accounted for 45% of total sales in the U.S. in 2013 and have now risen to 59% of the market, and continue to grow. While the amount of American cars has decreased in the local U.S. market share to international ones, the increase of foreign car production on U.S. soil has had the effect of creating new jobs for Americans both in the auto industry as well as in related new industries. The industry has seen huge growth numbers in the last few years with more growth expected.
During this project I researched on how TATA developed NANO costing Rupees1 lakh ($ 2500 U.S) and what will be its effects. A survey was also done for understanding consumer buying pattern and preferences (which is a part of secondary data).
China is one of the most attractive investment destinations for the world investors, now almost all the world car-manufacturing giants have launched their factories in this country, making huge efforts to explore their market share. And it has one of the world’s largest car markets, in the past few years sales have grown forty to sixty percent
In 2002, the Indian government formulated an “Auto Policy” which aims at promoting integrated, phased, and self-sustained growth of the Indian automobile industry.
Tata Motors, India’s largest auto manufacturer have created the world’s cheapest car priced at $2,500 allowing drivers to be able to afford a car. Tata Group is a global enterprise whose headquarters are located in India, founded in 1868. The group contains over 100 independent operating companies, located in more than 100 countries. Each company is under control of their own board of directors and shareholders. One of the subsidiaries of Tata Group that will be focused on in the paper will be Tata Motors. They were founded in 1945, which is headquartered in Mumbai produces different types of vehicles. These vehicles include passenger cars, trucks, vans, buses and military vehicles. Over the years Tata Motors have used a global strategy to
Opportunities: The external environment plays directly to Tata Motors advantage. In India the average household earned roughly 4,000 U.S. dollars, and only 38 out of every 1,000 people owned a car. With the poor economic state of India, Tata Motors was able to produce and sell the Nano car for 2,500, giving India an affordable alternative to motorcycles and scooters. Being able to produce a low-priced car is huge for Tata Motors considering the majority of India and China’s adult population do not own a car. Producing the lowest priced car on the market is putting Tata Motors in a position to corner the market in India and China. Also a huge opportunity for Tata Motors is that there are
Above analysis shows the satisfaction level of Tata Motors customers towards the customer relationship managed by the Tata Motors. From the above it can be clearly stated that majority of the respondents are highly satisfied with the customer relationship managed by the Tata Motors.
After analysing the information from the web and comparing with peers I finalized that the companies that look plausible for valuation both through financial means as well as the perspective of learning were TVS Motors (2&3 wheeler segment) and TATA Motors (passenger and commercial vehicle segment).
Consumer nowadays are quite concern on the quality of the products purchased. They are more willing to pay for a premium in order to obtain a superior quality of a product rather than spend less money to get a low quality of product. Thus, quality has become an important factor in determining what car or vehicle to purchase among consumers. Previous research has suggested that consumers are keeping their cars for longer, so it is even more vital that their car be well-built and relatively inexpensive to maintain. Definitely, imported car is better as compared to local car especially in term of quality. This is because imported cars were more reliable and cheaper to maintain than domestic car. This helps consumers to save their considerable money at import car services such as for maintenance and repair over the life of the car. Even the price of domestic car is cheaper than imported car, but it require consumers to spend a lot for maintenance and repair in the future. As a smart consumer, it is essential to consider not only the initial cost, but also the overall cost of ownership for the life of the vehicle.
This report traces the fascinating trajectory of the evolution of cars, and delves into emerging trends shaping the automobile market for future growth. The report highlights major market players, discusses their products, and forecasts the growth of the automobile market through 2020.
Tata Motors-have aussi Followed the footsteps beens and a pioneer in Technical Advancements in automobile sector. Tata Motors Benefit from the advanced Technically engineers operate in more than That 20 publicly traded companies Tata Group for it's R & D practical purposes. As Ratan Tata Said "The foundation of the company's growth is a deep understanding of Economic stimuli and customer needs, and the Ability to translate customer-Them Into Desired offerings through leading edge R & D". Tata Motors employs more than 1400 Scientists and Engineers All which make Tata Motors a winner in terms of technology in home market. Tata Indica, first as Indigenous, and Tata Nano, world's cheapest car, are examples of the technical capabilities and cost effective production efficiency of Tata Motors. Tata Motors-have-been Continuously investing around 2% of it's annual profits in research and development to stay ahead in the competition. Tata Motors is equipped with the 'only certified crash test facility in India' and Tata Motors set up it's European Technical Centre in 2005 That Improved companies competency in design engineering and product development. In services also, Tata Motors Developed has a -Electronic Control Unit as Compared to the Conventional Unit That the marriages accessories in a Manner effective sans Requiring a full fledges servicing
Tata Motors announced in 2006, that the Nano would be manufactured in Singur, West Bengal, helped in part by a forced acquisition and reuse of farmland by the West Bengal state government to entice Tata to build there. In May 2006, the West Bengal Government decided to acquire 997 acres (initially 1013 acres were asked for) for the Tata Motors small car factory in Singur of Hooghly district.Almost 6,000 families, including many agricultural workers and marginal peasants will loose their land and livelihoods. Though the State Government has decided to compensate the land owners, no policy has been taken for the landless agricultural workers and other rural households who are
Ratan Tata, chairman of Tata Motors Ltd., hoped to raise the status of Middle class families in India by offering the Tata Nano. Expectations were increasing amongst the customers regarding the product features and its efficiency. Competitors were eagerly waiting for its arrival to find out what they were going to be up against. It had strong and convincing features and was actually a good product. Unfortunately there were too many strategic marketing problems that kept it from being as big as they thought it was going to be. We will explain the problems it met and showcase some alternative solutions that could be implemented.