Tata Nano Case Study

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INDEX

1.0 INTRODUCTION

2.0 MAIN REASONS FOR TATA TO ENTER GLOBAL ULTRA LOW COST MARKET 2.1 MARKET DISTRIBUTION PIE CHART

3.0 What are the competitive advantages that TATA Motors will enjoy with their NANO in emerging markets 3.1 RESEARCH AND DEVELOPMENT
3.2 Acquisitions, Mergers & Expansions.
3.3 ORGANISATION LOCATION

4.0 WHICH SCREENING CRITERIA WOULD YOU SUGGEST FOR TATA NANO’S IMS PROCESS 4.1 POLITICAL
4.2 ECONOMIC
4.3 SOCIAL
4.4 TECHNOLOGICAL

5.0 Which world regions and specific countries would you suggest Tata Nano should enter after India and china 5.1 SALES FORCAST CHART

6.0 SUMMARY

7.0 BIBLIOGRAPHY

1.0 INTRODUCTION

Indian automobile industry have immerged as “sunrise sector” in the Indian economy. Indian is emerging as fastest growing passenger car market and it is also the home of largest motor cycle manufacturer. It is largest base to export compact cars to Europe . passenger car segment grew by 9.7% during April to June 2012 while the overall commercial vehicle segment registered a expansion of 6.06% on year-on-year basis (IBEF, 2012), which gives a great potential for Ultra low cost car like Tata’s Nano nicked named as “People’s Car” to capture the market , the CEO of Tata group Ratan Tata made way for people to buy an affordable car for their family at just 2500 US$. Tata Group have roots all over the world through its joint ventures and subsidiary companies around the globe which gives them a competitive advantage from its competitors. This report will give brief insights about how the Tata’s came up with Nano and their plans to expansions , their shares and advantages in the automobile market.

2.0 MAIN REASONS FOR TATA TO ENTER GLOBAL ULTRA LOW COST MARKET
More than just a business idea, the project to make a ultra low cost car NANO which can be afforded by millions of middle class people not just in India but around the world who have been dreaming to purchase a car all their life was a dream of a India’s leading conglomerate chairman Ratan Tata. He turned his vision into reality and this car was unrevealed in New Delhi Auto Expo in 2008 for $2,500 ( 1 lakh Indian rupees).

India is the most preferred destination for the automobile players globally and also have immense opportunities for ultra low cost car manufactures (ULCC) as the demand for ULCC is surging in the country despite increase in per capita and disposable income. As per the Dan Oxyer , vice president, A.T. Kearney “Literally the profit margins are 2%-3% in ULCC” tells ward’s in an interview, that’s amazing and alarming since a smallest mistake in the launch process, or commodity indexes continue to increase will erode those margins. (Wardsauto, 2008) Since the consumers in India are price sensitive therefore there is great demand for ultra low cost cars, consequently this market is anticipated to grow by 25%during 2010-2020. (market opportunities India ultra low cost cars, 2011). The phenomenal growth is from the increasing demand from the rural areas with less per capita income which contributes their inclination towards affordable alternatives. As per the study conducted by the Wardsauto, India has seen world’s largest growth in LCC market, with an 85% jump in the last 5years. LCC now represents 82% of all vehicles in the country, this says that while the LCC sector is well established, the ULCC segment is in its infancy, which gives TATA Motors an opportunity to penetrate the market.

The company nearly a market share of 12.6% which gives a significant share in the passenger car market for it to introduce its new Tata Nano car (SIAM, 2012)

Source: Siam, Society of Indian Automobile Manufacturers 2010-11 total market volume 2.5 million

3.0 What are the competitive advantages that TATA Motors will enjoy with their...
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