Tata Nano Business Plan

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*EXECUTIVE S*UMMARY What makes Tata Nano so cheap? Basically, by making things smaller, lighter, do away with superficial parts and change the materials wherever possible without compromising the safety and environmental compliance. It is said that Tata Nano has better millage than Toyota Prius and same gas emission as a scooter. Tata Nano will be imported to Malaysia by Tata Industries in parts. It will be assembled in its two factories i.e in Shah Alam, Selangor and Pasir Gudang, Johor Bahru. There are four distribution centres in Peninsular Malaysia i.e. in Kuala Lumpur, Penang, Johor Bahru and Kuantan. All Tata Nano cars will be distributed through these distribution centres only. Order can be made vide these distribution centres or its web site. 2.0 SITUATION ANALYSIS

Tata Motors Limited is India’s largest automobile company, with revenues of Rs. 35651.48 crores (USD 8.8 billion) in 2007-08. 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. The company is the world’s fourth largest truck manufacturer, and the world’s second largest bus manufacturer. In March 2008, Tata Motors acquired Ford’s UK based car brands Jaguar and Land Rover (BBC News, 2008). According to Ratan Naval Tata (Chairman of Tata Group), the need for an innovation like Nano has got to do something for the people of India and transport. Unavailability and poor quality of mass transport is a common problem in India. In a two wheeler, father driving with elder child standing in front and wife behind holding a baby is norm in this country. Thus, this is a relatively an unsafe mode of transporting a family. Thus, with this in mind Tata Nano was created as a safer form of transport. As one of its objectives is to become an Indian business conglomerate operating in many countries, Tata Nano will be introduced in Malaysia. {text:list-item} It is estimated that Malaysia has more than 5 million motorcycles on the road, compared to over 4 million motorcars(ICE, 2001).The majority of motorcycle buyers or users does not own a car and belong to the lower and middle-income group. A significantly larger percentage of motorcycle users in Malaysia are male. {text:list-item} The company is targeting lower income group with family, first-time buyers of car (fresh graduates) and motorcycle owners. Tata Nano will position itself as the world cheapest car and yet does not compromise the quality, safety and environment. This positioning will be achieved by leveraging Tata Nano’s competitive edge: industries experience from the parent company Tata Motor who has been in vehicles industries (commercial, passengers & utilities) since 1945. Tata motor has good supplier-manufacturer relationship with more than 100 components. {text:list-item} Population , demographics, rural urban, vital statistics from Malaysian auto report. {text:list-item} Tata Motors has targeted the urban area in Malaysia. This is going to be Kuala Lumpur and Johor Bahru. There are 5 million motorcycle riders in Malaysia. {text:list-item} Just like in India, Tata Nano will be positioned as an affordable car even in overseas markets. ‘Easy-to-assemble kits’ will be imported from Tata in India. The car then will be assembled at pre-defined locations. The proposed locations are Shah Alam, Selangor and Pasir Gudang, Johor Bahru. It will be then redistributed to showrooms that will be set up based on region. 30 sales offices will be opened throughout Malaysia. 2.1.6 Competitor review

The main competitors are Proton, Perodua, Toyota and Honda. The table below indicates the market share of the main competitors in the auto industry for the year 2008. {draw:frame}
{text:list-item} The following SWOT analysis investigates the Malaysian political, economic and business environment. The following finding...
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