Tata Nano – a Study on Business Challenges in India

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.

TATA motors has been a pioneer in indian automobile sector for more than the 60 years, established in 1945 ,today it is valued at over USD 40 Billion.The company now has its presence in almost every continent around the globe ,in about 175 countries.It currently caters to 3 market segments The passenger cars, Utility vehicles and commercial vehicles

The Tata Group founded its roots in Indian history almost a hundred years prior to its independence from England. It was established in 1868 as a trading firm by Jamsetji Tata in Bombay. (Tata, 2012). A single textile mill marked the journey of business prosperity for the Tata generations in 1874 during the time of the British Raj. Even till today, the Parsi group has always retained ownership. With its ancestral roots in the Zoroastrian community, Tata Group has been the creator of entire industries in India. Before the arrival of independence in the Indian realm, the Tata brand was synonymous to being a pioneer across a spectrum of versatile and diverse market segments. From the first luxury hotel (1903), first airline (1932), the first private steel company (1907), and the first national software entity (1968), the Tata name is one revered in Indian society.

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.

Tata Motors released the Nano automobile in 2008. In 2007, India with a population of 1.2 billion, only bought a little over 1 million automobiles. By contrast, they bought over 7 million

The automobile industry has exceedingly grown in today’s world. From the world’s fastest, luxurious car to the economic and fairly cheap ones, the market is very demanding. The industry in this analysis is Tata Nano. Tata Motors was established in the year 1945 by Ratan Tata and has developed as one of the most prevalent automobile industry in India. Tata Motors, established in a country where most of the population can only afford purchasing motorbikes. But, recent studies showed that 65% of Indian families are now able to afford cars and also applies to the increasing purchasing power of people across developing countries. The Tata Nano was launched in 2008, as a vision of Ratan Tata to facilitate those families who drove on a scooter to have a more comfortable drive at an affordable price of just $2500. Tata Nano is also known as the world cheapest car and signifies great technology and a small

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

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

Tata Motors, India’s largest auto manufacturer have created the world’s cheapest car priced at $2,500 allowing drivers to be able to afford a car. Tata Group is a global enterprise whose headquarters are located in India, founded in 1868. The group contains over 100 independent operating companies, located in more than 100 countries. Each company is under control of their own board of directors and shareholders. One of the subsidiaries of Tata Group that will be focused on in the paper will be Tata Motors. They were founded in 1945, which is headquartered in Mumbai produces different types of vehicles. These vehicles include passenger cars, trucks, vans, buses and military vehicles. Over the years Tata Motors have used a global strategy to

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

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.

Political Tata Motors operates in a vast amount of places all across the world . They’ve had great success in regions like Europe, Africa, Asia, the Middle East and Australia. When it come to politics influences Tata Motors need to pay close attention to Laws and regulations as well as the governing bodies that control the area. Local governments regulate commerce, trade, and investments. The local markets and economies are all influenced by national and local influences.

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 marks the biggest turnarounds in the history of Indian automobile manufacturing industry which happened in 2001. This success story of Tata Motors can be entirely attributed to the timely change adopted by the Tatas and the then MD Ravi Kant who led the change.