Tata Nano Case Analysis

3799 Words Nov 30th, 2010 16 Pages
Introduction: The Tata group is one of the largest automobile companies in India and ranks sixth in the commercial vehicle manufacturing in the world. It is a leader in the commercial as well as the passenger vehicle segment. The top three passenger vehicles are sports utility vehicle, mid-size car and mini-truck. In May 2008, the Tata group acquired Ford Motor’s British based automotive icons Jaguar and Land Rover. Lack of safer, comfortable and spacious means of transportation and poor quality of mass transport is a common concern in India.

Decision Problem: The Tata group come up with a unique concept “Tata Nano: the People’s car” to be built within USD2500 (Rs1 lakh), an affordable, safer, comfortable and spacious
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The heavy motors like buses, trucks, defense vehicles, auto rickshaws and other multi-utility vehicles are manufactured by Tata-Telco, Ashok Leyland, Eicher Motors, Bajaj, Mahindra and Mahindra, etc. India`s giant automotive manufacturer company TATA MOTORS has largest share in commercial vehicle in India. It has also positioned itself in the international market after acquiring Jaguar and Land rover and exporting their key products in the international market. The future of Indian Automobile market is bright as it looks forward to manufacturing and implementing new innovations.

Political factors: The liberalization of the automobile industry in 1990s encouraged foreign investors and Indian companies to enter into joint ventures. India became the largest and fastest growing car markets in the world in 2005-06 and it was reported that the passenger car market grew by 25% per year and the passenger vehicle exports grew by 12.7% annually. India has a well established regulatory framework under the Ministry of Shipping, Road Transport and Highways in which SIAM (Society of Indian Automobile Manufacturers) plays a very important role. All the stake holders are part of the regulation formulation setup. The Indian Auto Industry is implementing both Safety & Emission regulations in compliance with International Standards for sustained growth of the auto industry for combating the environment concerns and become a global

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