Tata "Nano": The People's Car

Best Essays
Comparative Issues on International Management
Tata “Nano”: The People’s Car

INTRODUCTION

The Indian company called Tata Motors manufactures the cheapest car in the world (Said, 2012). This caught the attention of the consumers in India especially those that earned an average income in the country. This four-wheeled drive vehicle replaces the motorcycle and scooters due to its safety and convenience. India's "People's Car" will be a "safe, affordable, all weather vehicle for a family which is today traveling on a two wheeler (Robinson, 2008).

Despite the herculean problems that Tata Motors encountered to launch the Nano car, the company still pursue what they had promised the consumers that awaits the cheapest car. The launch date of Nano cars was delayed but eventually still reach the triumphant success of gaining the cost competitiveness in the market.

QUESTIONS AND ANSWERS

1. What inspired Tata Motors to build the Nano? Why was there a need for an inexpensive car in India?

People’s car, as what they have introduced the new Tata “Nano” car in the country of India. The average annual income in India is around 445,520 INR (8,000 USD), according to 2012 salary survey (Averagesalarysurvey, 2013). Considering the facts mentioned above, there is a need for an inexpensive car in the country. The population was patronizing the motorcycles and scooters, as it doesn’t cost them much. The vehicles were normally used by India’s average class family and used it for travel with four passengers seated on the motorcycles. This led the founder to built a car that promotes safety when travelling compared to the motorcycles and affordability in price that most of the population can afford. So when “TaTa announced that they would build a ‘people’s car’ that would be fuel-efficient and low on emissions and would cost just ‘one lakh of rupees” (Auto India, 2009), the population of India was in



References: Averagesalarysurvey.(2013). Average Salary in India. Retrieved August 18, 2013, from http://www.averagesalarysurvey.com/article/average-salary-in-india/28162105.aspx Auto India. (2009). Tata Nano Review. Retrieved August 18, 2013, from http://www.tatanano.com/downloads/testrack_nano2.pdf Grant, R. (2010). Contemporary Strategy Analysis. West Sussex, United Kingdom. John Wiley & Sons Ltd. Muslimpopulation. (n.d.). Demographics of India. Retrieved August 21, 2013, from http://www.muslimpopulation.com/asia/India/Demographics%20of%20India.php Said, S. (2012). The Top 10 Cheapest Cars in the World. Retrieved Aug 20, 2013, from http://www.therichest.com/auto/the-top-10-cheapest-cars-in-the-world/ Robinson, S. (2008). The Worlds Cheapest Car. Retrieved August 21, 2012, from http://www.time.com/time/magazine/article/0,9171,1702264,00.html Tatanano. (2013). The Nano Story. Retrieved August 18, 2013, from http://www.tatanano.com/technical-specifications.html

You May Also Find These Documents Helpful

  • Good Essays

    Tata Nano: the People's Car

    • 12270 Words
    • 50 Pages

    TAHILYANI Tat Nano – The Peopl Car ta o e le’s r dia k big. Ind must think small to stay b — Ra atan Tata, Cha airman Tata G Group In March 2009, Tata Motors India’s larg , s, gest automob company by sales lau bile unched the world’s cheap pest car, the Tata Nano i India price at $2500 (see Exhibit 1 for a pict in ed ture of the N Nano). Throu ugh this laun nch, the comp pany realized Tata Group Chairman R d Ratan Tata’s v vision of mak king a “peop ple’s car” - a safe, affordab car which was within…

    • 12270 Words
    • 50 Pages
    Good Essays
  • Powerful Essays

    Presentation On Tata Nano - Presentation Transcript 1. Presentation On Tata Nano 2. Introduction Of Tata Nano o “ Dream-dream and dream, because dream gives vision, vision gives thoughts and finally thoughts lead to the action". Each letter of these motivational words said by India's former President Dr. A.P.J. Abdul Kalam goes exactly with Mr. Ratan Tata, Chairman of Tata group, who in the year 2003, dreamt of producing a safe, affordable Car for the common man. Finally after the…

    • 1656 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Tata Nano

    • 2217 Words
    • 6 Pages

    Introduction 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…

    • 2217 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Nano Tata

    • 1323 Words
    • 6 Pages

    SYNOPSIS The case illustrates the opportunities, challenges and trade-offs involved in the design, prototyping and marketing of the Nano — the so-called people’s car — by Tata Motors Ltd. (TML), a Tata Group company. The case takes place nine months after the company’s chairman, Ratan Tata, launched the Nano, on January 10, 2008, at the 9th Auto Expo in Pragati Maidan, an exhibition center in New Delhi, India. The case asks students to take the position of Ravi Kant,…

    • 1323 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    Tata Nano

    • 2495 Words
    • 10 Pages

    Tata Nano The Tata Nano is a small, affordable, rear-engine, four-passenger car aimed primarily at the Indian market. It was first presented by India's Tata Motors at the 9th annual Auto Expo on January 10, 2008, at Pragati Maidan in New Delhi, India. The car was envisioned by, Ratan Tata, Chairman of the Tata Group and Tata Motors, who has described it as an eco-friendly "people's car". The prefix "nano" derives from the Greek root 'nanos', meaning dwarf. "Nano" also means "small" in Gujarati…

    • 2495 Words
    • 10 Pages
    Better Essays
  • Satisfactory Essays

    Tata nano

    • 690 Words
    • 3 Pages

    -problems faced by Tata to build world's cheapest car: =battle sky rocketing costs =huge engineering hurdles =bad press (car caught fire). Some of the early nanos caught fire on the streets. Local and intl experts were brought in to investigate the problem but nothing was found wrong with the design of the car. In response the nano design team of the car decided to take further safety measures in order to make a more robust nano. Additional protection was provided on exhaust system. In electrical…

    • 690 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Tata Nano

    • 3778 Words
    • 16 Pages

    cheapest car in the world by TATA Company name “TATA NANO”. The objective of this research proposal is to find out an opportunity or a problem in the launch of the smallest /cheapest car targeting masses through secondary information / data. Also to gain knowledge about how TATA brought this new product i.e., “NANO” up to the development stage and finally going to launch it on 23rd March, 2008 (already launched till now). During this project I researched on how TATA developed NANO costing Rupees1…

    • 3778 Words
    • 16 Pages
    Powerful Essays
  • Good Essays

    Tata Nano

    • 1667 Words
    • 7 Pages

    of Tata Nano After having successfully launched the low cost Tata Ace truck in 2005, Tata Motors began development of an affordable car that would appeal to the many Indians who drive motorcycles.[4] The purchase price of this no frills auto was brought down by dispensing with most nonessential features, reducing the amount of steel used in its construction, and relying on low cost Indian labor. The introduction of the Nano received much media attention due to its low price. The Tata Nano is a…

    • 1667 Words
    • 7 Pages
    Good Essays
  • Powerful Essays

    Tata Nano

    • 4561 Words
    • 19 Pages

    ECONOMIC ANALYSIS OF TATA NANO Index 1. Company Overview of TATA motors 2. Market Demand 3. Total Sales Estimation 4. Producers Behaviour 5. Cost Structure & Pricing Strategy 1. Company Overview of Tata Motors Ltd. 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…

    • 4561 Words
    • 19 Pages
    Powerful Essays
  • Satisfactory Essays

    tata nano

    • 427 Words
    • 2 Pages

    TATA NANO (B) Problem Analysis Bottom –line Goal: In 2010 they sale 9,000 vehicles per month before the drop off. To recover and increase sales to 150,000 cars per year ( 60% of the capacity of the plant – 250,000 cars). Intermediate goal: To recover the reputation of the car of a low cost, good quality, safe and resistance to performance in Indian roads. Impediment: Car price: The price increase because of the problems with the fires that required increase the security features as…

    • 427 Words
    • 2 Pages
    Satisfactory Essays