Tata Nano Case Study

1425 Words Dec 25th, 2010 6 Pages
CASE STUDY ON TATA NANO

TATA MOTORS HAS UNVEILED THE WORLD'S CHEAPEST MOTOR NANO CAR

The case discusses the making of Tata Nano, the world's cheapest car, manufactured by India based Tata Motors. On March 30, 2009, Tata Nano was launched with an ex-factory price tag of INR 100,000 (about US$ 2000). The case explains the design and development process of TataNano. The car was the result of a five year research and development project carried out by Tata Nano development team. While developing the car, Tata Motors and its suppliers constantly made efforts to reduce the costs while ensuring quality of each and every component including engine, steering, wheels, tires, windshield washing system, gear shifter etc.

THE MAKING OF TATA
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  To increase modularity Creative use of information technology

COMPETITORS:

Rival car makers including Bajaj Auto, Fiat, General Motors, Ford Motor, Hyundai and Toyota Motor have all expressed interest in building a small car that is affordable to more middle-class consumers in emerging markets. The bulk of demand there is for small cars because people are much more sensitive to fuel prices Honda and Toyota are leading the way on so called cleaner gasoline-electric hybrids, and some environmentalists argue getting prices down on these technologies is where efforts should be concentrated. Inexpensive and eco-friendly electric-cars like Tara Tiny, Oreva Super (both reportedly even cheaper than Tata Nano) and REVA pose even more significant danger to Nano. There are also rumours of Maruti Suzuki introducing a lower priced version of Alto to counter Tata Nano.

KEY FACTS EXTRACTED FROM THE CASE:
 Cost saving has been achieved in all departments i.e. design, development, purchasing, production, materials, logistics and sales.  The design aimed at minimising the total number of components with a target of each component having a dual functionality.  Components used in the car have been divided into proprietary and Tata Motors design. Tata went with ventures with many companies like bosch which supplies the engine

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