Tata Nano Case Study

Tata motors approaching the market according to the nature of the market. Medium cost cars have more demand in Indian market than luxury cars. Tata motors identify the market demand and customer preference in advance. Nano car is the cheapest car in the world. It is an example of the company’s smart approach.

This is a research proposal on a study on launch of new cheapest car in the world by TATA Company name “TATA NANO”. The objective of this research proposal is to find out an opportunity or a problem in the launch of the smallest /cheapest car targeting masses through secondary information / data.

With the launch of Nano, the dynamics of India’s auto industry are likely to undergo major changes as wide spectrum of auto manufacturers ranging from two-wheelers to cars will come under intense pressure to minimize prices as much as possible. Success of Nano is expected to make every automobile company change the way it works and looks at the volume market. The creation of an ultra low cost segment has already created a shudder in the automobile industry. Many automobile companies have announced their entry into this segment while others have hinted price cuts to sustain demand. Industry experts believe that introduction of Nano will lead to a sharp drop in prices of used car and in turn will stretch the budget of a new car buyer looking for exchanging old car. This aspect will affect sales of all small cars like Wagon R, Zen Estillo, Santro, Indica, Hyundai ‘i10’ and Spark.

Most of the people recognize Tata Motors through Tata Nano. Tata Nano was a dream and brainchild of Ratan Tata, Tata Group’s Chairman. It was marketed as Rs. 1 Lakh car and also as people’s car. The idea behind Tata Nano was to give common man who cannot afford the luxury of 4-wheel drive a car which is affordable and to raise the level of lower middle class society in India. It was launched with price of Rs. 100000 but the price got increased with time. With time and with dwindling automobile markets in various countries the manufactures realized that the cheap and practical cars or small car segment is what they should target and focus on. The concept of small car segment or cheap car is not latest. Henry Ford had a similar vision as Tata Nano back in 1908 and he came out with MODEL-T in that year. This can

The Tata Nano is a small car manufactured by Tata Motors made and sold in India.

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

This car is so-called “Tata Nano”, US$2500, which is cheaper than other competitors such as Toyota, Honda, and Suzuki which cost approximately US$ 5,000 a car. Therefore, many blue-collar workers, who have low income and prefer to have a car, can easily afford Tata Nano by spending less amount of money. In addition, it provides 21 percent more spacious to drivers than current compact cars in the Indian market. This feature is also special that no one has such as a rear engine

TATA NANO is a project that will surely be viable in the longer run. Further, it will be a project that will embark India as the biggest producer of small cars in the world.

Tata Motors enjoys giant-sized growth thanks to its Nano cars. The company -- India 's largest automobile maker by sales -- makes buses, trucks, tractor-trailers, passenger cars (Indica, Indigo, Jaguar, Land Rover, Safari, Sumo, and the popular micro car Nano), light commercial vehicles, and utility vehicles. It also makes construction equipment and provides IT services. Tata Motors sells through more than 1,000 dealers in India, as well as exports vehicles to countries in Africa, Asia, Europe, the Middle East, and South America. In addition, the company distributes Fiat-brand cars in India through its Tata-Fiat dealer network.

The Tata Nano aimed to revolutionize the India’s market. First, the goal of the Tata Nano was to be the smallest in order to be maneuverable, as the streets in India were extremely small and unsafe. At the same time, the Tata Nano had to be the most affordable car in India, at a price of Rs. 1 lakh, in order to allow everyone to afford this car and more particularly those who could not afford a car before. To finish, as Tata Motors Ltd aimed to improve the quality

automakers are investing here in this segment. There is Tata Nano ready to be launched and

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.

Tata Motors offers the most comprehensive range of commercial, passenger and multi-utility vehicles and has continuously evolved, adding value to its product. Recognizing the need to transport goods speedily, conveniently and in a cost effective manner with comfort, style and ease of maintenance, Tata Motors developed the Tata Ace.

"Dream-dream and dream, because dream gives vision, vision gives thoughts and finally thoughts lead to the action". Each letter of these motivational words said by India 's former President Dr. A.P.J. Abdul Kalam goes exactly with Mr. Ratan Tata, Chairman of Tata group, who in the year 2003, dreamt of producing a safe, affordable Car for the common man. Finally after the wait of five years, crossing all financial and technological barriers, Ratan Tata kept his promise and unveiled Tata Nano on 10th January 2008, at the 9th Auto Expo 2008 in New Delhi. Tata Nano car, cool & smart, launched by Tata Motors is world 's cheapest Car with a price tag of $ 2500. The dream of People 's Car has come true.

Passenger vehicles in India could be segmented into three categories: passenger cars, utility, and multipurpose vehicles. Passenger cars contribute about eighty percent of total sales volume and is expected to grow fifteen percent annually. Though there were numerous auto