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Tata Nano in India

Decent Essays

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Positioning the Tata Nano (A) and (B) This case deals with the positioning of the Tata Nano - for its launch and after its launch - , a new version of ultra-low-cost cars produced by Tata Motors Ltd. for the India’s market. 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 …show more content…

To finish, we can see that the two-wheelers (motorbikes, etc.) are clearly dominating the vehicles sales market in India (representing 76% of the total vehicle sales whereas passenger vehicles represent 16% of the total vehicles sales in India) and could be in fact the main competitors of the Tata Nano. Indeed, they are well adapted to the small streets and their maneuverability is well known in the mind of customers, and more particularly college students. Besides, these two-wheelers have a very competitive price (Rs. 35,000 to Rs. 75,000) and are less expensive to operate and for the maintenance than the Tata Nano. As a result, the two-wheelers are probably the main competitors as they answer the same needs than the Tata Nano. Concerning the suppliers, we can see that they can have a huge impact on the automobile industry, as rising raw material costs can quickly increase the price of the cars, which was finally the case for the Tata Nano after its launch. To finish with the consumers, the case indicates that they are looking for low prices but their aspirations are rising. We are now going to look at the context of the automobile industry. The government’s liberalization of regulations on foreign trade and restrictions on private companies in 1991 helped the car’s industry to flourish, with an annual growth of 17%. However, per-capita ownership is low in India, only 12 car owners per 1,000 people. Indeed, consumers are privileging the two-wheelers, as explained

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