Essay on 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.

Also to gain knowledge about how TATA brought this new product i.e., “NANO” up to the development stage and finally going to launch it on 23rd March, 2008 (already launched till now).

Ans: Tata Motors was a leading player in the segment of commercial vehicle market. In 1954 Tata Motors in collaboration with Daimler Benz started manufacturing heavy commercial vehicles like excavators and earth moving equipment’s. When Japanese firms Toyota, Mitsubishi and Nissan entered the Indian market through joint ventures for manufacturing light motor vehicles, Tata Motors took this opportunity and developed light motor vehicles (TATA 407, TATA 608, and TATA 709) that went ahead of the Japanese firms due to low cost, adaptable to Indian road conditions and good after sales service.

Companies like Tata Motors and similar industries from emerging countries often face many challenges at one phase, but there are various strategies they can use to compensate their disadvantages and rather gain the advantages from the developing markets and have a prospect to become a global force.

Tata Motors is launched in 1945 as Tata Engineering and Locomotive Company Limited, for producing locomotives and other engineering products. Its first commercial vehicle was manufactured in 1954 with Daimler-Benz AG, ended in 1969. In 1991 with launch of the Tata Sierra it entered in the passenger vehicle market. Its first passenger car Tata Indica was launched in 1998 and it also launched the world’s cheapest car Tata Nano in 2008. Now it is involved in design, development, manufacturing and sales of vehicles and its parts. This is a second largest bus manufacturing company and fourth largest truck manufacturing company in the world

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

The Company Profile: Established in 1945, Tata Motors Limited boasts of a consolidated revenues of INR 2,32,834 crores in 2013-14. The compay leads in commercial vehicle in most market segments and is one of the major players in passenger vehicle segment. The company offers a spectrum of many award winning compact, midsize and utility cars. The company is also a global leader in the truck and bus manufacturing, occupying the 5th and the 4th position in the world correspondingly.

TATA Motors is the flagship company of the TATA group & is India's largest automobile player with consolidated revenues of USD 14 billion in 2008-09. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. TATA Motors was listed on the New York Stock Exchange in 2004.

Tata Motors is India’s largest automobile company by revenue and is also one of the popular vehicle manufacturers in India. Tata Motors began manufacturing commercial vehicles in 1954 with a 15-year collaboration agreement with Daimler Benz of Germany. This partnership has led Tata Motors be the world’s top five manufacturers of medium and heavy trucks and the world’s second largest medium and heavy bus manufacturer. Tata’s product line ranges from world’s least expensive automobile vehicle, the Tata Nano to luxury automobile brand like Jaguar and Land Rover, which Tata motors acquired Jaguar Land Rover from Ford Motor for 2.3 billion in June 2008.

In recent years, MNCs have also emerged from developing countries such as India, Malaysia, Hong Kong, Singapore, South Korea, Indonesia, etc.

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

Before taking a leap into TATA motors, lets separate TATA first, and a small introduction to India 's most trusted company. TATA is one of India 's largest conglomerates, and is also the most respected company to emerge in India till date. They have their main businesses and companies in almost seven sectors. it aggregates about 2.8% of India 's GDP. Now coming to TATA motors, it is the automobile manufacturer of the TATA group. And they manufacture vehicles for all types of people ranging from villagers to high-class businessmen. They have set the class apart. They have tie-ups with Jaguar Land Rover, Fiat etc. They are leading in the commercial as well as passenger vehicle sector. And to add more fame to their reputation they stand in the fourth place for tractor manufacturing in the world. They provide all sorts of help to the farmers and villagers as they are the leaders in providing machines for agriculture. In this project we will study and learn up close about this company and making of their features and strategies which make them unique to the world .

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.

Companies Like bajaj, Tvs, Yamaha. need to watch for the above phases and evolve their business plans such that they emerge as leaders. The challenges are many; the customs duties on import of GPS devices are very high. There is enough market for all players and it is important to encourage competition as an engine of growth. Overall, I can safely sum up that while the past has been exciting and we have lived in ‘interesting times’, the future is going to be all the more interesting and exciting than anyone has ever imagined. Several new markets will be created and leaders will be made of existing companies or born out of new ones in this space. Let us look forward to a huge growth in the coming years so that we can sit back and smile when it actually does come our way.

Today Tata Motors ranks as the world’s fifth-largest manufacturer of medium and heavy trucks—it has a 61 percent domestic market share in this segment—and has taken the number-two position for sales of passenger vehicles in the Indian market. It has also built a significant global presence, both through sales efforts in overseas markets (such as the former Soviet republics, the Middle East, South Africa, South Asia, and Turkey) and through acquisitions such as the takeover of Daewoo’s commercial-vehicle business in South Korea and the purchase of a 21 percent stake in the Spanish bus