The Tata Nano Case

1037 WordsDec 8, 20105 Pages
To: Mr. Ratan Tata, Chairman TATA Group of companies, India From: ------------------------------------------------- Date: Fall 2008 The issue that TATA Motors Inc. is facing right now is to predict the viability of the Project Nano. Also, TATA Motors Inc. wants to know what other steps it can adopt to improve the chances of success for its newest venture- The Nano. Overview TATA Motors Inc., part of one of the most respected Business Houses in India-TATA Sons INC., is currently in a phase of producing the world’s cheapest car-TATA NANO. The company has made efforts in manufacturing a cheap car priced at around USD 2200 (INR 100000-Approximately) while still not forgoing the quality and environmental efficiency of the…show more content…
* It can increase the price on NANO in the developed economies and use part of these higher profits towards sustainability, thus, improving its brand presence and also achieving its intent towards society. * TATA can extend the credit period of its suppliers by using its highly respected brand name and thus, reduce costs and so, improve its margins. * TATA should make sure that it has a strong distribution and order placement system which makes it easier for its customers to place and receive orders. * TATA should predict the demand for the NANO which is to be very high and be prepared for mass production and utilize its highly sophisticated manufacturing process to the fullest. * TATA Motors has a distinct advantage in entering the tourist car/Taxi-car segment in India as the old tourist vehicle/Taxi-Car: the Fiat 1100D is no longer in production and the other alternatives are priced at a very high rate as compared to the NANO. * TATA has an advantage in entering the auto rickshaw/Tuk-Tuk segment in developing economies like India, Thailand, Cuba, China, Vietnam, Sri-Lanka and Pakistan as the cost of these vehicles is around the cost of TATA NANO but these vehicles are only 3-wheelers and thus, occupy lesser people per vehicle. Conclusion TATA NANO is a project that will surely be viable in the longer run. Further, it will be a project that will embark India as the biggest producer of small cars in the world. Word Count: 999

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