Tata Nano Case Study

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.

Although different measures were taken by Tata Motors for their product design, engines and transmission yet there were some

Tesla Motors target their vehicles towards the upper middle class, where not everyone would be able to afford. Tesla is currently the only manufacturer of a zero emission sports car. While the threat of substitutes within the electric car industry Tesla faces is currently low, but due to the price premium of the product causes Tesla to face other substitutes such as gas vehicles, hybrids, mass transportation, and hydrogen vehicles. As Tesla only targets the upper middle class, environmental conservatives and those who are looking for a high end luxury car, most consumers who are price conscious would most likely choose the alternatives because of Tesla’s high price on their electric cars. Tesla faces substitute competitions from General Motors, Toyota, BMW, and Daimler AG, Nissan and Honda as some of these companies are also starting to build their own electric cars to get into the electric car business, which will increase the number of substitutes in this industry. With each every coming year more manufacturers are beginning to go towards building their own electric motor technology to enter the electric car market.

Although almost all automobiles today are primarily fueled by gasoline, the market for electric cars is rapidly developing. Analysts from Bloomberg project that “electric vehicles [will account for] 35% of global new car sales by 2040.” (Electric Vehicles To Be, 2016). Two companies at the forefront of this push to create electric vehicles are Tesla and GM.  Tesla joined the electric automotive industry just a few years ago with its luxurious, fully electric vehicles, and has been the leader in the field ever since. GM, on the other hand, has traditionally produced affordable gasoline-run cars for the middle class, and is now infiltrating the electric vehicle market.

As mentioned earlier Tata Motors being the largest automobile firm in India, it is admired to be the most reliable and futuristic manufacturers in today’s world. Tata vehicles and their new cars are preferred globally for their advanced technologies and handiness with over 130 models of passenger vehicles and trucks which tend to boost the Indian market internationally. Tata Motors have various core competencies that further make it different from others in the market place. As stated earlier, a core competency for Tata Motors is the acquisition of jaguar and Land Rover in order for an expansion internationally, directly giving them an ultimate competitive

Tata motors limited is the India’s largest automobile company, with the consolidated revenues of INR 2, 62,796 crores in the year of 2014-15. It is the leader in the commercial vehicles in each segment, and among the top in the passenger vehicles with the winning products in the compact, midsize cars and the utility vehicle segments. The Tata motors group has over 60,000 employees are been guided by the mission “to be passionate in anticipating and providing the best vehicle and experience that excite our customer globally. It has been established in the year of 1945, Tata motors presence cuts across the length and the breath of India. Over 8 million Tata vehicles ply on Indian roads, since the first rolled out

You partner with a major Indian small car manufacturer such as Tata or Bajaj to take its people’s car frame and mechanics and convert it to electrical power ($5,000 at retail), make it super safe and add commuting delights ($1,500 at retail), give it super

Although different measures were taken by Tata Motors for their product design, engines and transmission yet there were some obligations

I have taken the case on Tata Motors Ltd. The case was all about on the Tata Nano Singur Controversy. This controversy refers to the Tata’s Nano Factory at Singur in Hooghly district in West Bengal, India. Since Tata Motors Started constructing the factory over there in Singur, the small place comes into the media worldwide. Tata Motors started this factory to manufacture 25000 cars firstly. The plans of Tata Motors were that Nano will come out from the factory by 2008 for rolling out the roads.

TML is currently posed with a tricky question of how to go about the Tata-Nano (the much-hyped “People’s Car”) business strategy, given its commitment to release it on time with the promised cost and the spectrum of issues and recent developments that pose potential hurdles.

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.

Tata Motors has continued to increase its presence in the car industry throughout Asia and the world, but especially in their home country of India. From their goal of providing innovative affordable products for the masses, they have expanded from commercial vehicles into passenger cars, becoming India’s largest automobile company. As part of their global expansion strategy, Tata Motors acquired Jaguar Land Rover (JLR) in 2008, which allowed them to move into the higher end car market. The timing of which proved difficult, due to global recession. The latest innovative product that Tata has developed is the Nano, a low cost car designed to compete as a safer and more comfortable alternative to 2-wheeled vehicles in India. Tata was able to find a Blue Ocean with this product. The Nano’s release in 2009 was a resounding success, with over 206,000 orders in the first year. The interim plant was able to produce 50,000 vehicles the first year, with the new plant expected to have a capacity of 350,000 vehicles in 2010. Initial estimates put the potential market demand for vehicles similar to the Nano near one million units per year in India, with the potential to expand to global markets. Global automakers have plans to start production of ultra low cost (ULC) vehicle, so this will be a highly competitive market. The core problem for Tata Motors is that they need to decide if they continue as planned with their production of only 250,000 vehicles or if

Tata Engineering and Locomotive Co. Ltd was established in 1945. In 1954, the company launched its first automobile; between 1954 and 1969, it collaborated with Daimler Benz to produce commercial vehicles. By the 1990s, the company had entered the passenger vehicle market. In 2004 Tata Motors acquired Daewoo commercial Vehicle Co. Ltd., Korea’s second- Largest truck manufacturer, and became the first Indian company to be listed on New York Stock Exchange. The next year, it acquired a 21% stake in a Spanish bus manufacturer, and in May 2008, it bought British automotive icons Jaguar and Land Rover from Ford Motor Co. The auto mobile industry in India benefited significantly from liberalization in the 1990s, when the

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.

In the post-2006, Tamil Nadu witnessed the third wave of automobile revolution. With the setting up of automobile plants by Renault-Nissan, Hyundai & Ford expansion, Daimler, BMW, Ashok Leyland-Nissan JV for commercial vehicles, etc. In addition, South Korea’s Doosan, Japan’s Komatsu and USA’s Caterpillar are also in the process of establishing large earth moving equipment manufacturing plants. As of now, Chennai comprises nearly 35% of India’s share in the automotive sector. Chennai has emerged as the leader in automobile manufacturing in India.