About Tata Nano：
- The Project was kept as a secret in the Tata Motors’R&D section and named PROJECT X3. - Started with its first plant in Singur, West Bengal from 2007 - Lead by Girish Wagh (General Manager, Tata Motors Ltd.)
- Objective was to create very low cost transportation system with four wheels for the bottom line of Pyramid. - Used coopetition system (suppliers have to collaborate but simultaneously compete with each other) - Guaranteed long-term contracts for specific components to Suppliers. - The car was designed at Italy's Institute of Development in Automotive Engineering. Bosch, Mahle also played an important part in parts manufacturing. -A team of 500 engineers worked in a 450 Hectares facility.
- The plant faced political and civil obstructions in Singur. - The $30 billion plant was shifted to Sanand, Gujrat in 1 year by 3400 trucks covering over 2200kms. - Tata Nano was launched in January, 2008 at the Auto Expo New Delhi.
Macro Environmental Factors:
- Initiation of the Automotive Mission Plan 2006-2016 (2006) -Reduction of consumption tax 4% (2008-2009), due to decreased consumer confidence -Access to Finance: A special form of car finance provided by Indian Central Bank (GTAI2009), due to tight credit market
- GDP per capita grew by 32% from 2006-2009 → high disposable income → purchase power growth - 2008-09 the sales volume of Indian automotive industry contributed 3% to the Indian GDP - Passenger vehicles predicted growth rate of 16.7% until 2014
- The need of fuel-efficient and environment friendly cars
- The need of improved safety technology
- Main raw material is also affected by high inflation
- Growing population creates a huge market
- The increase of urbanization
Porter’s Five Forces:
1. Threat of the Entrants-------Moderate
-High Capital Investment
-Government Policy & Regulation...
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