Tata Engineering and Locomotive Co. Ltd was established in 1945. In 1954, the company launched its first automobile; between 1954 and 1969, it collaborated with Daimler Benz to produce commercial vehicles. By the 1990s, the company had entered the passenger vehicle market. In 2004 Tata Motors acquired Daewoo commercial Vehicle Co. Ltd., Korea’s second- Largest truck manufacturer, and became the first Indian company to be listed on New York Stock Exchange. The next year, it acquired a 21% stake in a Spanish bus manufacturer, and in May 2008, it bought British automotive icons Jaguar and Land Rover from Ford Motor Co. The auto mobile industry in India benefited significantly from liberalization in the 1990s, when the government eased regulation on foreign trade and restrictions on private companies. International companies took advantage of India’s affordable yet highly trained engineers, establishing manufacturing operation throughout the country. In 2005, experts predicted India would become the world’s third-largest economy by 2020. Positioning of car Nano
Ratan Tata today admitted that the group made some critical mistakes while launching the Nano. "We were not ready with a proper advertisement campaign and dealer network until the first 100,000 cars were sold. The basic concept is still robust and we are going to push it as an affordable family car," he said. He said Nano got wrongly positioned as a poor man's car. That was not the intention. It is very much an affordable family car. Tata urged the media to reserve its judgment on the car as it cannot be termed a flop yet. Nano variants will be launched in Europe and the US. "I don't see any competition to Nano on pricing still," he asserted. "I think there will be a resurrection of the product as we improve," Tata added. While Tata has received praise for turning around Jaguar-Land Rover, the Nano's debacle is seen as his only major failure. Ratan Tata seems determined to prove the essential robustness of the concept of Nano. Elaborating on this, Tata Motors vice-chairman and former MD Ravi Kant said: "There is still a strong emotional bonding that customers have with the Nano. This universe is expanding." He said in the next 2-3 years, there would be substantial integration of JLR technologies. Tata and his top team emphasised that Tata Motors should now be seen as a global entity, not merely as Tata Motors India or Tata Motors UK. and platforms into Tata Motors India products. Main Issues and mistakes of Nano
The strategy adopted by Tata Motors to promote Nano was badly flawed, say brand and marketing experts, albeit with the benefit of hindsight. The Nano generated tremendous publicity for itself as the "world's cheapest car". While that created headlines, it wasn't the sort of communication that necessarily sold cars. The messaging could have been more proactive in the initial phase of the launch, experts said. As it could have been when the project had to beat a retreat from the Singur factory site in West Bengal or when some cars began catching fire. "A series of factors has impacted the Nano, right from the Singur issue to cars catching fire to clumsy marketing strategy," said Autocar India editor Hormazd Sorabjee. "There was a bit of overconfidence at the start and not much marketing push from the company. The hype fizzled out even before Tata Motors could effectively roll out sizeable (number of) cars on the road. A person close to the company said, "Somehow it got slotted as a Rs 1-lakh car or a cheap car. Tata Motors did not intend to position it like that, but they did not do enough to manage perceptions." Making too much of the price tag was a mistake, said Zia Patel, principal at leading international brand consultant, Wolff Olins, and head of strategy for India. "The value engineering and innovation was brilliant. But it was never quite clear who the car was for. Was it to replace a two-wheeler for commuting, was it a second car...
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