Swot Analysis Of Tata Nano

Tata Nano wanted to bring in a cheap car into the market which would be affordable for the middle income level consumers, due to which it started cutting cost of manufacturing the car.

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

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).

They are Hyundai Motor’s “Santro”, Daewoo Motors “Matiz” and Fiat India “Uno”. There was an effect on price sensitivity as people are ready to pay more for fuel efficient cars.

Tata Motors released the Nano automobile in 2008. In 2007, India with a population of 1.2 billion, only bought a little over 1 million automobiles. By contrast, they bought over 7 million

Production appears to be a constant problem for Tata Motors. Branded production of Tata motors vehicles is geared towards economical cars and not luxury, while it appears that the market is geared more towards luxury. Tata Motors branded car sells fell 31 percent from 2013 to 2014, and in 2015 fell another 24.5 percent from 2014. Production also appeared to have missed a large flaw in the Nano which caused it to catch fire. Marketing also seems to be lacking in other countries. Although Tata Motors is present in many countries, the largest portion of their consumer based is India where the company is mainly located. Although the largest portion of their sales comes from India, Tata Motors holds very little of the market share for passenger vehicles in India.

3. It is perceived as a brand with the lowest cost of ownership and that is one of the factors that has made Maruti Suzuki into the market leader that it is now.

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).

In 2013 : Tata Nano became the cheapest Car and the first Auto Brand in India .

A company, either serving a few or all geographic segments, needs to put attention on variability of geographic needs and wants. After segmenting consumer market on geographic bases, companies localize their marketing efforts (product, advertising, promotion and sales efforts).

4.) Focusing on special segments like Women drivers or college students as the first car- this would have helped the TATA’s create a generation of customers and keep these students in the same family as they grow up.

Geographic segmentation divides the market into different geographical units such as countries, states, regions, cities or neighbourhoods that the customer group resides.

Next to the businesswise weaknesses there are some practical weaknesses in the car too. The fact that the Tata Nano does not have a modern facility like ABS, PS or AC for example. In addition the car has less boot space than other regular brands. This makes it less attractive for tall people to buy such a car. In general western people are taller than Asian people which might cause a problem. Next to this, another practical problem is the fact that the car has no headlight levelers. Headlight levelers might be seen as a luxury device, but these modern days all cars have it. When someone is used to this kind of functions it can be a reason not to buy the car. Thereby the car is not really fit for hilly areas. It is small and the engine is not powerful enough to drive up to steep hills. People living in Austria, Suisse or areas of France and Spain will rather buy a four-wheel-drive car than a Tata Nano. Another practical weakness is the Tata Nano’s poor fraction control. For a lot of people outstanding

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

The CEO planned poorly for the future, even when the product didn’t even hit the market yet. His goal on minimal costs was his backbone for the Nano and he relied heavily on this one feature. He should have undergone more market testing for his product instead of assuming that everyone was going to go crazy for his product. He needed to come up with the proper campaign that would attract customers for additional reasons other than cost. Everyone already knows the price is extremely low, so ads should stress other qualities of the vehicle.