•The Tata group comprises over 100 operating companies in
seven business sectors.
•The total revenue of Tata companies, taken together, was
$83.3 billion (around Rs3,796.75 billion) in 2010-11.
•Tata companies employ over 425,000 people worldwide.
Empress Mills, Nagpur 1877
TATA Steel established in
Source: TATA website
Taj Mahal Hotel in Bombay,in
Aviation Service in 1932.
Medium Commercial vehicle in 1954 TELCO entered into Passenger car segmented
and Launched TATA Seirra in 1991
•Distributor for Fiat in India.
•Joint Venture with Mercedes Benz to Manufacture
Benz Passenger cars in India
Source: TATA website
2003 TELCO changed its name to TATA Motors.
TATA Indica Launched in 1998.
TATA ACE launched in 2005.
Acquisition of The Jaguar Land Rover in 2008.
Source: TATA website
“I observed families riding on two wheelers -- the father
driving the scooter, his young kid standing in front of him, his
wife seated behind him holding a little baby. It led me to
wonder whether one could conceive of a safe, affordable, allweather form of transport for such a family.”
-- Ratan Tata
India has just seven cars per 1,000 people.
just 1.3 million passenger vehicles were
sold in India in the year 2006.
A billion Indians buy about the same
number of cars in a year as 300 million
Americans buy in a month.
A four wheeled open car with safety side bars?
Rolled up Plastic curtains in place of windows?
Concept Testing And Developing
One young three wheeler in a village said
“If I had a four-wheeler, I would have better marriage
prospects in my village,“
Wagh realized that four wheels had emotional, not just
Three requirements for the new vehicle:
It should be low-cost
Adhere to regulatory requirements
Achieve performance targets such as fuel efficiency
and acceleration capacity.
Tire size Reduced.
Reduce Consumption of Material being used.
Eg: 14 inch tier replaced with 10 inch tire.
Alternate Suppliers to get same material at fewer prices.
Use alternate materials.
Eg : use Aluminium in the place of cast iron for engine.
Eliminate use of Material.
Eg : Air bags removed,manual steering,tires of tubeless.
Total Sales Estimation
Source: crisil report.
Launch of TATA Nano 2007
– Ratan Tata
All-aluminium, Rear Mounted, Rear Wheel Drive
Multi Point Fuel Injection (MPFI)
Petrol, Diesel Version will be later
20-22 Kmpl (City drive)
26 Kmpl (Highways)
Euro-IV, Bharat Stage-III compliant
Frontal Crash Tested
One Standard and Two Deluxe
TATA Nano comes under Existing Brand and Line Extension.
A1 - Mini - Upto 3400mm (M800, Nano)
A2 - Compact - 3401 to 4000mm
(Alto, wagon r, Zen,i10,
A3 - Midsize - 4001 to 4500mm
A4 - Executive - 4501 to 4700mm (Corolla,civic,Optra,Octavia, etc)
A5 - Premiun - 4701 to 5000mm
A6 - Luxury - Above 5000mm (S class,5 series etc)
B1- No of seats including driver is < 7
B2- No of seats including driver is >7 and <9
Small car segment.
Second hand car segment.
Taxi Car Segment.
DIFFERENT COLORS IN ALTO
DIFFERENT COLORS IN MARUTI 800
DIFFERENT COLORS IN TATA NANO
For the lower middle class, the Nano will be their first car.
For the middle-middle class, it will their second car,
wheels they can take to the local market.
For the Upper-middle class, Nano will possibly be the
third in their garage, for their „Old People' to ride around.
646 acres of land on a 90 year lease with rental of $0.2 million
A loan of $44 million at 1% interest repayable after 20 years.
Electricity at Rs.3kwh.
Repayment of Rs 9,570 cr loan @ 0.1%
over 20 years.
100% exemption on electricity duty
Concessional power tariff
1,100 acre land comes cheap
No stamp duty, Registration and transfer charges
Payment for land in 8 equal annual instalments
Singur: Annually Manufacture 50000 cars.
Sanand:18-24 months from Singur-Sanand
Trail production of the Nano in Sanand in Jan 2010.
Capacity- 250000-2 shift basis
350000-3 shift Basis
Future Plan-Expand the capacity to 500000 cars per
2009-tata motors received 206000 fully paid order for Nano
2010-Delieverd 20000 Nanos
75%-Orders outside the Big cities.
30%-Two wheeled Vehicle Owners.
50%-Buying the Second hand car.
• Ultra Low Cost
• 2.3 to 3 million
• Produced in
cost levels via
• Small car to grow at a CAGR of 19.6% from
2008-2009 to 2013-2014.
• European markets, that would meet European
• Speed,Comfort,Handling,is concerend and
that’s pretty different from Tata Nano targeting.
Nano - United States
• Price up by 60%-90%.
3.5% Global Volumes
Priced $ 10,0826.
Built a good vendor and dealer network in INDIA.
0.6% Global Volumes
Priced $ 7600
Invested in INDIA $500 Million
Adopted a policy of multiple Vendors for most Compenets
• Working with BAJAJAuto, INDIA’S second largest Two
wheeler manufacture with a market share of 32%.
• Develop a $3000 car stated.
• Expected to be launched in INDAI in 2012.
• Dodge Hornet with Chinas Chery Automobile
• Announced a $3700 Car
Though the market situation is encouraging we suggest TATA
to stick to the current Manufacturing plan as it invested a lot in
Jaguar deal and lost money in Singur plant.