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A project report on tata nano pre launch survey

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A project report on tata nano pre launch survey

A project report on tata nano pre launch survey

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  • 1. Projectsformba.blogspot.com 1Projectsformba.blogspot.com
  • 2. Projectsformba.blogspot.com INTRODUCTION OF TATA NANO“Dream-dream and dream, because dream gives vision, vision gives thoughts and finallythoughts lead to the action". Each letter of these motivational words said by Indias formerPresident Dr. A.P.J. Abdul Kalam goes exactly with Mr. Ratan Tata, Chairman of Tata group, who inthe year 2003, dreamt of producing a safe, affordable Car for the common man. Finally after the waitof five years, crossing all financial and technological barriers, Ratan Tata kept his promise andunveiled Tata Nano on 10th January 2007, at the 9th Auto Expo 2008 in New Delhi. Tata Nano,cool & smart, launched by Tata Motors is worlds cheapest Car with a price tag of $ 2500The Making Of Tata NanoRatan Tata rolls the window down and talks about the vision and conviction, the innovation andimprovisation, and the leap of faith that went into creating the Peoples Car.The launch of the Peoples Car by Tata Motors is a defining moment in the history of Indiasautomotive industry. For Tata Motors, the car - christened the Nano, because it is a small car withhigh technology - is the next big step in a journey that began with the Indica. For the Tata Group, itis the realization of a pioneering vision to create a breakthrough product globally that rewrites therules of the small-car business.What does this path-breaking Endeavour really mean for the Chairman of the Tata Group, in manyways the inspiration behind the car? Thats what Christabelle Noronha set out to discover when shemet Mr Tata at Pune, as 2007, a momentous year for the Group, was drawing to a close.There has always been some sort of unconscious urge to do something for the people of India andtransport has been an area of interest. As urbanization gathers pace, personal transport has become abig issue, especially since mass transport is often not available or is of poor quality. Two-wheelers -with the father driving, the elder child standing in front and the wife behind holding a baby - are verymuch the norm in this country. In that form two-wheelers are a relatively unsafe mode oftransporting a family. The two-wheeler image is what got me thinking that we needed to create asafer form of transport. My first doodle was to rebuild cars around the scooter, so that those usingthem could be safer if it fell. Could there be a four-wheel vehicle made of scooter parts? I got intouch with an industry association and suggested that we join forces and produce what, at that point,I called an Asian car: large volumes, many nations involved, maybe with different countriesproducing different sets of parts¦ nobody took the idea seriously, nobody responded. 2Projectsformba.blogspot.com
  • 3. Projectsformba.blogspot.comThis was similar to what happened when we wanted to get going on the Indica. I had proposed apartnership with an industry body to create an Indian car, designed, developed and produced in India,something that could be conceptualized and executed as an Indian enterprise. Everybody scoffed atthe concept. I remember people saying, "Why doesnt Mr Tata produce a car that works before hetalks about an Indian car." My confidence got a boost when we finally succeeded with the Indica.Willy-nilly, we decided to look at [the low-cost car] project within Tata Motors.It was never meant to be a Rs1-lakh car; that happened by circumstance. I was interviewed by the[British newspaper] Financial Times at the Geneva Motor Show and I talked about this futureproduct as a low-cost car. I was asked how much it would cost and I said about Rs1 lakh. The nextday the Financial Times had a headline to the effect that the Tatas are to produce a Rs100,000 car.My immediate reaction was to issue a rebuttal, to clarify that that was not exactly what I had said.Then I thought, I did say it would be around that figure, so why dont we just take that as a target.When I came back our people were aghast, but we had our goal.Today, on the eve of the unveiling of the car, we are close to the target in terms of costs. We are notthere as yet, but by the time we go into production we will be. This project has proven to everyonethat if you really set yourself to doing something, you actually can do it.Two-three important events have influenced the development of the car; inflation, for one. The coststatement was made three-four years back but we are holding on to that price barrier. This willdefinitely diminish our margins. The price of steel, in particular, has gone up during the interveningperiod.A second point is that we initially conceived this as a low-end rural car, probably without doors orwindows and with plastic curtains that rolled down, a four-wheel version of the auto-rickshaw, in amanner of speaking. But as the development cycle progressed we realized that we could - and neededto - do a whole lot better. And so we slowly gravitated towards a car like everyone expects a car tobe. The challenge increased exponentially; there was the low-price barrier, inflation, adding morefeatures and parts to the vehicle, substantial changes in basic raw materials€¦ What the team has beenable to achieve, in the face of all these constraints, is truly outstanding.Why India Must Think Small to Stay BigRatan Tata looks positively relaxed as he walks into the lounge of Mumbais private airport for thismeeting. He has been awake since 3am and has just flown in from the south. There are hardly anysigns of fatigue as he poses for pictures before the interview is scheduled to begin. 3Projectsformba.blogspot.com
  • 4. Projectsformba.blogspot.comAs the coffee comes in, Tata sends word to remind his driver to have his meal as he is going to belate. The first thing that strikes me about this man is his humility and disarming attitude. Remember,he is Indias most powerful corporate chieftain who is equally well known across the world.The topic now shifts to the all important Rs 1 lakh car and the rationale of moving down the valuechain. Is this the best route and does it make sense to ignore the more profitable premium category?If you look at India, you have about one billion people growing at about 17-18 million a year. Youhave a middle class or a consuming class of about 250 million, which is increasing from the bottomup each year. And you have a higher percentage at the top of the pyramid, which has been the buyingpublic hitherto for most Indian products.There is also a segment of the market that is brand conscious, prestige-conscious and would ofteneven prefer to buy foreign brands to Indian brands. They know what is happening elsewhere in theworld and would prefer to put their money on a foreign brand rather than an Indian brand, heexplains.In the automobile sector, other than Tata Motors and Mahindra & Mahindra, the industry herelargely comprises of foreign companies. As Tata says, while it is an issue of great satisfaction thatthese two Indian companies have been able to get meaningful market shares. in this arena, only thetop part of the pyramid is being addressed.Hence, the million-plus cars being sold are going mainly to that segment and somewhat to the topend of this large consuming area. I had projected that we would be a million cars in 2000 but that didnot happen because we were in an economic downturn.So we can say that in 2007, our market would be 1.7 million or two million units. But is that reallythe market potential of the country? After all, it is one where the people buy six million two andthree wheelers, which is six times the passenger car market, he says.As everyone is aware, this is obviously because of the price disparity. The point therefore, he adds, isto be able to address the lower market somehow with a reasonable acceptable product. India, in anycase is a country where people have a tremendous urge to own but often it is beyond their reach.Why do you see such a great sale of clothing on a foot path? Why is Fashion Street in Mumbai sopopular? The guy in the factory wears clothes that at least look like what the higher end wear. Thefact that they come from Tibet or Nepal is not an issue.Why is it that the same footpath sources are able to sell tennis or running shoes even if they arefraudulently branded Nike or Reebok? The person is aware of those brands, wants them but cannotafford to pay for them. So, he settles for these, remarks Tata.What is clear is that if branded product manufacturers can address that market, it is a hugeopportunity. The bigger question is the ability to address it and this where Tata believes it is possible.If we are looking at a small car, we should not do this at the same proportion as cars of today arebeing looked at. We should be bold and take some risks so that we can have a much larger scale of 4Projectsformba.blogspot.com
  • 5. Projectsformba.blogspot.comconsumption of that product in India or elsewhere. We need to take a gamble on that and that is mytake on addressing that wider market, he says.Tata believes that this is something that needs to be done because otherwise the Chinese will addressthat market in India with a suitable product. All that they will do is to squeeze the Indianmanufacturers into a position at the higher end of the market, denying him access to the largermarket.We can certainly increase numbers by addressing the lower end on lesser margins but still beprofitable. The Ace has been an example at the commercial vehicle end. It is the same thing whereyou are getting much more for that vehicle.You must not be overpricing the value for what you are providing. If you can answer that, then itmakes sense. Then if you take it further and put power steering, provide air conditioning and so on, itbecomes an attractive product that others cannot compete with, he says.According to Tata, the Rs 1-lakh car would probably be out towards the end of 2007-08. The way itis being planned now, it is going to be a rear engine car, essentially steel, with some plastic parts. Itwill be a five seater with four doors. No decision has been taken as yet on the engine capacity.The car will have a continuous variable transmission. At that low cost, it will not have a clutch andwill be easier to drive without any gears. It will be a product that will be simpler to deal with, easierfor women to drive and something that we hope will add value to the customer, he says.Tata Motors will produce the bulk of the production in its plant. This is where the entire conceptbecomes interesting. We What we also wish to do, which is still not fully clear and a concept at thispoint of time, is to create any opportunity for entrepreneurs, he says.Low cost units in different parts of the country will assemble the car where Tata Motors will take theresponsibility for training on site and other aspects related to quality etc.We will give young entrepreneurs the opportunity to establish enterprises in distributed areas toproduce this for us. We will produce all the high volume parts and send them as kits to theseassembly units. This will also enable us to address some international markets in Indonesia, Africaetc on the same kind of basis. 5Projectsformba.blogspot.com
  • 6. Projectsformba.blogspot.comTata’s people’s car: Tata’s one lakh car is the most expected car in recent times not only in india, the whole world isanticipating for the car. “The one-lakh car is a case study which the whole world is watching. Ifsuccessful, the car can spark demand in a new segment all over the world” reports JD power anautomotive rating and research firm. That’s why every news and rumors about the low cost car isgetting covered in almost every magazines, every newspapers and every web portals even the mightyBusiness week and BBC is reporting about the developments of the car. The most expected car hasalso become the most controversial car in Indian history. Whether its the singur controversy or thecompetitors criticism in one or many ways the one lakh car is making news.While the Chevrolet Aveo, currently the cheapest car in the US, costs around $ 10,350 whileEurope’s low cost contender the Dacia Logan costs around 6000 euros. Coming to india while mostmanufacturers are finding difficult even to make a 100cc bike for Rs40000 Tata is building a car for1 lakh ($2500) and Tata has to break its own achievements and has to set new levels of benchmarksin design, production, assembly, logistics and whereever they can to produce a car at such a price.Can the Tata’s meet the expectations? Will the one lakh car convey the india’s potential to theworld? Will Tata stick to its price tag? Will it make sense for Tata to have a car when other playersare moving to premium segments? Will the more demanding customers will like the low costmachine? In this preview we will find answer for all these questions also we will know how tata iscutting the cost in all domains to adhere to its price tag.Name for the Commuters car:The most watched car in the Indian car space — the Rs 1-lakh ($2500) offering from the Tata Motorsstables — is still unnamed, but company sources here believe that `Jeh’ is emerging as the `mostfavoured name’. “It has always been our Chairman Mr Ratan Tata’s dream to name one of the carsafter J.R.D. Tata,”said a Tata official.What’s the 1 lakh car all about?Tata says the proposed Rs 1-lakh car would be a vehicle that “will seat four to five people and have arear engine. It will not be a scooter, three-wheeler or an auto-rickshaw made into a car.” “It will alsonot be a stripped down car. It will be an inexpensive car,” he said, but added that it would obviouslynot have the finish or the high speed or the power of a larger car. It would be a rear engine, 4-5 seat,four-door car with about 30 hp (horsepower) engine. Though it is tough to preview a car which isguarded highly by its manufacturer, we will unveil as much we can in this post. The price we haveannounced is the price we are launching the car at. Tata never said the price will never rise. But hecan’t say if it did, when. When the Maruti van was first launched I bought one of those for Rs50,000.Of course now that product is not available at that price. Our Endeavour with the Nano willbe to hold our price as much as possible axAbout.com, All rights reserved. 6Projectsformba.blogspot.com
  • 7. Projectsformba.blogspot.com MODELS OF TATA NANO Tata Nano Standard Tata Nano Diesel Standard Tata Nano Deluxe Tata Nano Diesel Luxury Tata Nano Luxury Tata Nano Diesel DeluxeVEHICLE SUMMARYName: NanoModel: StandardCar Body Type: HatchbackSegment: A SegmentTop Speed: 1050 to 60: 12.600 to 100: 0.00Fuel Consumption: 26.00 kmpl.HighwayFuel Consumption: 22.00 kmpl.CityENGINE SPECIFICATIONSDisplacement: 624cc, 3 cylinder, rear engineEngine Type: PetrolMaximum Power: 33bhp@5500rpmMaximum Torque: 48Nm@2500rpmDIMENSIONSLength: 3090 mmWidth: 1485 mmHeight: 1570 mmOTHER SPECIFICATIONSSeating Capacity: 4Tyre Size: R12Suspension: McPherson strut & Independent coil springSteering: PowerBrakes: Front Disk, Rear DrumGears: 4 ManualGround Clearance: 180.00 mmKerb Weight: 580.00 kgs.Fuel Tank: 30.00 7Projectsformba.blogspot.com
  • 8. Projectsformba.blogspot.com FIND VEHICLESPerformance Comfort Find More Like ThisBetter Fuel Efficiency With Remote Central Locking Similar Body TypeBetter Top Speed With Electric Seat Adjustment More Cars From Same SegmentSafety With Power WindowsVehicles with ABS With Power Steering Body Type and LooksRear Defogger With Climate Control SedanEngine Type With Alloys HatchbackPetrol Engine Vehicles With Leather Seats CoupeDiesel Engine Vehicles With Remote Boot and Remote Roadster Fuel Filler EstatePhotos Photos Interior PhotosTata Nano Luxury Tata Nano Basic Tata Nano 8Projectsformba.blogspot.com
  • 9. Projectsformba.blogspot.comTata Motors to produce one lakh car in ThailandYesterday, there were media reports indicating Tata Motors would unveil a high-end variant ofpeople’s car or 1 lakh car (jeh) at the upcoming Geneva Motor show. It is very obvious that TataMotors would launch the one lakh car across the globe and will customise it depending on the marketdemand. For South East Asian Nation, it’s almost sure that Tata Motors will produce the one lakhcar in Thailand plant. It recent years, Tata motors is very bullish on Thailand. Tata Motors isbuilding an assembly plant in alliance with Thonburi Automotive to sell the Sprint pickup inThailand from March 2008. Tata Motors has also submitted a request to Business of Foreign Tradein Thailand to set up an assembly plant for eco cars with a capacity of 100,000 units at an investmentof over $250 million (1000 crores) in Thailand. Connecting the dots, we come to know that TataMotors will produce an environment friendly variant of one lakh car in Thailand. CNG and LPG islikely to be the option. In addition, Tata will produce a much powerful (engine with a capacity of1000cc) one lakh car in Thailand to cater to the needs of the region which are currently dominated byJapanese majors like Honda and Toyota. Safety features like airbags and ABS will be added to theone lakh car to comply the safety standardsTata plans $250m eco-car plant in ThailandFew weeks back we reported you on Global auto makers plan to make Thailand an eco-car hub underthe heading Is Thailand edging out India?Tata Motors which will soon roll out the new generation sprint through its alliance with Thailandbased Thonburi. Tata Motors will produce 35,000 pickups from 2008 in Thailand. Now, it plans tomake 1lakh environment friendly cars in Thailand. Global Auto maker are making queue in Thailandto avail the tax breaks offered by the Government of Thailand to companies that produce hybridvehicles. For more details read click the link specified above. Tata Motors has submitted anapplication to build a new eco-car assembly and parts plant, with annual output capacity of 1,00,000to Thailand’s Board of investment. Tata Motors will invest around $250 million (1000crores) for theThailand plant. Tata has already invested $43 million for the pick-up plant.Ace pick-up:Tata Motors may also produce a pick-up based on its small truck- Ace for the Thailand market. Ithas already launched the passenger version of Ace, called Magic, in the domestic market. Tata’sMagic could be re-engineered to a pickup and made available under different eco-friendly fuel formslike compressed natural gas (CNG) and liquefied petroleum gas (LPG) to meet the emission norms.Indian Manufacturers in foreign soilsWhen many of us prefer Honda’s and Suzuki’s over Tata and Bajaj, we fail to notice Indianmanufacturers are making great strides in many parts of the world. Tata, Mahindra & Mahindra,Bajaj and TVS begin to attract customers across the world not just in under-developed countries butalso in developing countries and developed countries. Unlike Chinese manufacturers, an Indianmanufacturer does not make any copycats and they are not facing any litigation. Apart from thetrucks where it’s a world leader, Tata’s passenger car division is making its own mark in worldautomobile market. Tata sold its indica in Europe till 2005, it sells indica’s, indigo’s, TL sprint, 9Projectsformba.blogspot.com
  • 10. Projectsformba.blogspot.comsumo’s and safari’s in most parts of Africa and south America. Tata plans to make a comeback inEurope and it is building a assembly plant in Thailand. Tata motors also plans to debut in Russia.Mahindra has joint ventures to sell its vehicles in South Africa and Europe, and a local distributor inMalaysia. It has manufacturing facilities in Uruguay, and will soon set up plants in Egypt and Russia.Soon it plans to enter the toughest American market. Bajaj Auto which already has a significantpresence in Colombia and most of the Asian and African countries such as Srilanka,malayasia,bangladesh,guatemala, Indonesia and south Africa is planning to roll out pulsars in iran. Bajaj auto isone of the largest exporters of three wheelers. You can find Bajaj’s three wheeler even in Europe andUnites States of America. Bajaj Auto has said in the past that it would like exports to touch the10lakh mark by 2010 and be a significant part of the overall revenue. Today, exports are close topercent (Rs1700crores) of the company’s total revenue. TVS motors have built a plant in Indonesiaand has already rolled out a step-thru in that market. TVS plans to use the Indonesia plant as itsmanufacturing hub for exports to Malaysia, Vietnam, Thailand, Myanmar and Cambodia. Ok let’sstop the excitation! will Tata and Mahindra be the next Toyota or Honda, are Indian manufacturersare really making waves in western markets or is it just media hype? do they have potential to matchthe mighty Ford’s, Honda’s and Yamaha’s. Hereafter, we will try to cover all the movements ofIndian manufacturers in foreign soil! 10Projectsformba.blogspot.com
  • 11. Projectsformba.blogspot.com FEATURESOverviewTata Motors is the worlds fifth largest medium and heavy truck manufacturer and the second largestheavy bus manufacturer. Mr. Tatas dream project, the Rs one-lakh car has generated immenseinterest in the Indian auto market, where Tatas current lowest-priced car is Indica with a tag of Rs3.3 lakh. The one lakh rupee car is going to be a real car with the basic features.Nano is in every way a car, with an engine, a suspension, and a steering system designed for its size.The most watched car in the Indian car space - the Rs 1-lakh offering from the Tata Motors stables -is going to be launched in March in 3 variants. When launched, the car will be available in bothstandard and deluxe/luxury versions.All versions will offer a wide range of body colours, and other accessories so that the car can becustomised to an individual’s preferences. It is aimed to rank between high end motor cycles and thecompact car segment. Instead of researching on low cost components by themselves, Tata hasdelegated the task to various vendors.The fuel-injection system is being developed by MICO while Brakes India and Bosch ChassisSystems will be supplying low cost braking system. Around 55 prototypes have been tested onIndian roads under varied conditions.The name Nano was chosen as it denotes high technology and small size. It was the most eagerlywaited car. State Bank of India (SBI) has been appointed exclusive booking agent for the Tata Nano.People world over were keen to see what Tata Motors Peoples Car looked like, and know moreabout it. The Tata Motors website saw nearly 7.9 million hits on January 10 (the day the Nano wasunveiled), while the Tata Nano website saw 4 million hits in 30 hours, making these sites among thebusiest in the world.EngineNano has a rear-wheel drive, all-aluminum, two-cylinder, 623 cc, 33 PS, multi point fuel injectionpetrol engine. This is the first time that a two-cylinder gasolineThe lean design strategy has helped minimize weight, which helps maximize performance per unit ofenergy consumed and delivers high fuel efficiency. Performance is controlled by a specially designedelectronic engine management system.Fuel EfficiencyAs in international markets, Nano will have back mounted engine, pushing the luggage space to thefront. Making the engine closer to the fuel tank has another advantage of increased fuel efficiency. 11Projectsformba.blogspot.com
  • 12. Projectsformba.blogspot.comRear mounted engine also help in reducing the power loss during transmission. Nano has front diskand rear drum brakes. The company claims mileage of 22 kmpl in city and 26 kmpl on highway.Safety & ComfortBy adhering to the fact that less weight requires less power, Nano is made of light weighing steel.This has made the Tatas come up with a cheap alternative with out compromising on safety andperformance.With an all sheet-metal body, it has a strong passenger compartment, with safety features such ascrumple zones, intrusion-resistant doors, seat belts, strong seats and anchorages, and the rear tailgateglass bonded to the body.Tubeless tyres further enhance safety. It exceeds current regulatory requirements with a strongpassenger compartment, crumple zones, intrusion resistant doors, seat belts, strong seats andanchorage. Length 3.1 meters Width 1.5 meters Height 1.6 meters All-aluminum, Rear Mounted, Engine Rear Wheel Drive Capacity 623 cc Power 33 PS Fuel Injection Multi Point Fuel Injection (MPFI) Fuel Type Petrol, Diesel Version will be later Body Type Sheet Metal Seating Capacity 04 (Four) 20-22 Kmpl (City drive) Mileage 26 Kmpl (Highways) Top Speed 75 K.M Euro-IV, Bharat Stage-III Emission Norms compliant Safety Norms Frontal Crash Tested Versions One Standard and Two DeluxeEngine and Transmission:It is almost sure that Tata’s no frills car will be an rear engine car –to save the transmission cost. TataMotors have tested an 550-650cc engine but felt it is not sufficient to propel a four seated and theydecided to step up the engine. Robert Bosch the international Auto Electronics major hasacknowledged that’ its latest success is an order to supply alternators, brakes, and gasoline and dieselmanagement systems for the one lakh car from Tata’. So a diesel and petrol unit is sure for the onelakh car. It is believed that finally tata settled for a 660cc petrol unit and 700cc diesel unit to powerthe one lakh car. 12Projectsformba.blogspot.com
  • 13. Projectsformba.blogspot.comFor the 660cc petrol unit Bosch has designed a special fuel injection system called “value moronic” -the cost of the system is roughly half of a full scale system and it is said to be more efficient. For the700cc diesel will be a CRDi unit (it’s DICOR for Tata) too Bosch has developed a special injectionsystem for this world’s first twin cylinder CRDi engine. Earlier in 1998 when Ratan Tata unveiled aconcept car named ‘zing’ he initiated the idea of producing the 1 lakh car using scooter parts. Yes,Tata opted a basic, automatic or variomatic transmission, instead of a manual transmission set up.Not only it will help the tata in cutting the cost as Tata targets millions of two-wheeler users for its 1lakh car it will be easy for the tata to lure them. In the combination of smart petrol unit or a DICORunit with automatic transmission the one lakh car will be dearer not only while you’re buying it butalso it will be softer on your monthly fuel bill. Overdrive reported petrol version of the one lakh carregistered mileage/ fuel efficiency in the region of 26kpl (65mpg) in the internal Tata tests and butTata is gunning for 30kpl!(70mpg) enough isn’t it? If not, Tata – Bosch DICOR unit may satisfy ourthirst. On the performance side the petrol unit is believed to produce 33bhp with a top speed of120kph(80mph)Few disadvantages in a rear engine car:* Uneven weight distribution and hence poor traction control* Poor cornering and poor handling* Poor engine cooling and hence more chance for engine overheating* Almost no boot space and cramped space for rear passengersDesign and features:Nano is designed with a family in mind, has a roomy passenger compartment with generous legspace and head room. It can comfortably seat four persons. Four doors with high seating positionmake ingress and egress easy.Yet with a length of 3.1 meters, width of 1.5 meters and height of 1.6 meters, with adequate groundclearance, it can effortlessly manoeuvre on busy roads in cities as well as in rural areas. Its mono-volume design, with wheels at the corners and the power train at the rear, enables it to uniquelycombine both space and maneuverability, which will set a new benchmark among small cars.Tata’s zing and indiva concept cars exhibited at 1998 and 2002 auto expo would be base for theproposed one lakh car. Apart from the concept cars, the one lakh car is sure to have few signspopular rear engined cars such as Volkswagen beetle, Fiat model 500 and Porsche cars. Tata hasoutsourced the design to Italy’s Institute of Development in Automotive Engineering (IDEA) whichdesigned most Tata;s cars including indica. The one lakh car probably will not be designed to winany beauty contests but at the same time it will not be a ugly duckling either. As evident from theindiva, tata’s small car will embrace not so contemporary tall boy look similar to Maruti Suzuki’sWagonR. Under the front hood the one lakh car will have a small storage space, “like an overheadbin” on an airplane. 13Projectsformba.blogspot.com
  • 14. Projectsformba.blogspot.comAs bonnet is used for the storage space, headlamps will not be a wraparound, it may be quadrilateralin shape and the headlamps will sit on the smaller bonnet. As the one lakh car is a rear engine one, ibelieve drivers will have more fun with this car, starting from steep rake to the larger frontwindshield is truly what every driver loves to have. For the one lakh car there will not be adistinctive grille but because of the round bumper, Tata’s will carry its familiar ’smiley’ front look tothe one lakh car as well. Tata’s small car will make use of a single wiper instead of two, not only forgiving the car a cleaner look also for cutting the cost of windshield wipers for the people’s Car inhalf. In the sides as Tata will source smaller tyros from its cargo carrier ace for the one lakh car andbecause of this Tata will not spruce up the fenders. Not so full wheels and black door handles willfeature in people’s car. Identical rear view mirrors will be used on either side to save cost. In the rearone lakh car will be more up market since the car will have pillar mounted tail lamps similar to itssibling indica.Inside, the one lakh car will feature all the basic amenities, instrument console would have aspeedometer, an odometer and fuel gauge. You have to cut costs on everything—seats, materials,components—the whole package,” says Tata Group Chairman Ratan N. Tata. These are the wordswhich are going to be reflected in upholsteries and door trims.Some Innovation made the Tata Nano possible, from design to product finalizationInitially I had conceived a car made by engineering plastics and new materials, and using newtechnology like aerospace adhesives instead of welding. However, plastics didnt lend themselves tothe volumes we wanted because of the curing time required. Volumes mean the world in this context:if we produce this car and if it is for the wider base of the pyramid, we cant settle for small numbersbecause then the purpose is defeated.When we were planning facilities for the car and working out a business plan, the business planshown to me was looking at a figure of 200,000. I said 200,000 cars is crazy. If we can do this weshould be looking at a million cars a year, and if we cant do a million then we shouldnt be doing thiskind of car at all.But such a figure (a million cars) has never been achieved in the country before. If it had to be donethe conventional way, it would have meant investing many billions of dollars. So we looked at a newkind of distributed manufacturing, creating a low-cost, low break-even point manufacturing unit thatwe design and give to entrepreneurs who might like to establish a manufacturing facility. We lookedat different ways of servicing the product, at the customers location, and through a concept adoptedfrom the insurance industry, wherein self-employed people are trained and certified by us. And wewent back to innovation in design and scrupulously took, as much as we could, cost out of theproduct.We did things like make similar handles and mechanisms for the left- and right-side doors; wedeveloped our own small engine which could sit under the rear seat, enabling us to craft a smalleroverall package; we looked at a new type of seats; and we worked at cutting costs everywhere. Wehave put our instrument cluster in the middle, not in front of the driver. This means the samedashboard will work for a left-hand-drive vehicle. There are a lot of such innovations that are low-cost and future-oriented. 14Projectsformba.blogspot.com
  • 15. Projectsformba.blogspot.comEqually important to the cost structure was the incentive we could get from having ourmanufacturing facility at a particular place. The benefits on this count will be passed on to thecustomer.Our move to West Bengal was a leap of faith and a sign of our confidence in the leadership in thestate. We were breaking new ground, not only on the product front but also in helping industrialize apreviously ignored part of India. But we did not start out getting the incentives that other states wereoffering. I remember telling the chief minister [Buddhadeb Bhattacharjee], "Sir, much as we havetried, it makes no sense for us to come to West Bengal. We cannot meet the cost requirements wehave without incentives." It was then that we negotiated a set of incentives that, long-term, work outto be the same as we may have had if we set up in some other place.Other than emission norms and safety standards, what are some of the other challenges, physical andpsychological, that Tata Motors had to overcome to make this car happen?There was the usual dilemma of what is basic and what is nice to have. A basic car may not have allthe niceties its fancier cousins sport, and when youre looking at saving money on every single bit ofthe car — even parts that cost as little as Rs20 — you keep facing these dilemmas. Hundreds ofsuch dilemmas have risen.However, we were always conscious that there should be no quality stigma attached to the buying ofthis product. One thing we were clear about: this was never going to be a half-car. Nobody wants acar that is less than everybody elses car. Our car may have a small engine and certain limitations interms of being basic, but that does not make it inferior. Also, we have a higher version of the car -with air conditioning, leather seats, etc - that we will be displaying at the auto show in Delhi. Wehope people will look at that, too. Down the line, as we widen our range, we will have dressed-upversions with higher-powered engines, diesel engines, automatics and the like. We have a wholebunch of innovations coming along on this platform. What we now have is a car that is truly low-costwhich has, approximately, the same performance as a Maruti 800 in terms of acceleration, top speed,etc.Some myths about the one lakh car:Though too early to call some news about the 1 lakh car as myth, from Tata words we can atleastflush some rumors about it. Some scoops on car’s features includes - Curtains replacing glasswindows, removable bolt-on seats instead of the regular ones, roof will be an optional add-on, andplastic body panels instead of the regular metal panels. Yes, Tata had talks with General Electric forusing its re-engineered plastics for its low cost car and Tata may make use of modern adhesivesinstead of welding to cut down cost, but still there is no definite direction in this issue but certainlythere will be no curtains. The one lakh car will be a complete car with definite roof and glasswindows 15Projectsformba.blogspot.com
  • 16. Projectsformba.blogspot.comReactions about Nano"Its a good historic moment for the Indian auto industry and also a proud one indeed that an Indiancompany took a step forward on this road. Its an up gradation for an auto wheeler rider to by a carnow.“ Rajesh Jejurikar, Managing Director, Mahindra and Renaults."Its good product but its still too early to say whether it will overtake the 800 because it caters to atotally new market segment.” Said Jagdish Khattar, Former MD of Maruti Udyog Limited"Meeting the proper quality standards and safety is not feasible at all in such a model.Andreas Prinz, Managing Director (Passenger Cars), Volkswagen Group Sales India."I think it is a great thing for India because mobility is giving new opportunities. I hope Tata drivesto great success with the Rs one lakh car, but it is not included in our plan.“ Thomas Kuehl, Board Member, Skoda Auto India. 16Projectsformba.blogspot.com
  • 17. Projectsformba.blogspot.com TARGET MARKET • The low-cost car is clearly intended for the masses. For the family of four that would otherwise ride on a scooter, precariously balancing a tiny tot on the front and a baby on the wife’s lap. For the first-time car buyer in India - a huge market despite the increasing number of cars in the urban and semi-urban areas. • Its Also attract the small cars buyers like maruti 800.What makes Tata Nano so cheap ! • The Tata Nano uses plastics and adhesives rather than welding. • introducing the car with an artificially low price through govt-subsidies and tax-breaks, or • using vertical-integration, or • Partially using inexpensive polymers or biodegradable plastics instead of a full metal-body. • It has no AC, no power steering, no power windows, no power bells and whistlesThink Big With The Small Car: Ratan TataEver since the Nano debuted last week, Tata Motors chairman Ratan Tata has faced all manner ofquestions. From environmental (congestion/ pollution/emission) issues to the problems at thecompanys under construction plant in Singur, West Bengal. Normally reticent, he has painstakinglyanswered all of them. Here are some excerpts from some of the non-spec specific questions that hehad to field at the Auto Expo.The Nano project was delayed because of the political agitation and later other issues. Will TataMotors be able to wrap things up as per schedule? And will the car itself undergo any moreevolution?There is always last minute engineering that gets done. The main issue is that we have built the plant.It was flooded earlier last year but thankfully before the machines and equipment were installed. Thewater receded and construction is now on in full swing both from our side as well as the vendors. 17Projectsformba.blogspot.com
  • 18. Projectsformba.blogspot.comThe problem in Singur was not of our making, It was unfortunate. I hope we can improve the qualityof life in the highly district as a good corporate citizen should. We have already started to do that andI hope the plant will attract more industries and create more job opportunities for the local populace.A small car is a SMALL car. If one is looking for a limousine this is not the car to buy. If one islooking for a three-box sedan, this is not the car to buy.Ratan Tata has not made a claim to be the most eco-friendly in the world. They are in compliancewith emission norms in India and this current engine meets BS3 and is capable to being scaled up toEuro 4 as well. There is a cost attached to being a totally green car. At the end of the day, all thethings you ask for may not be there in this vehicle because we had a cost target. And that wouldinclude some of the green stuff as well.They are a socially responsible company but they are not a philanthropic trust. They will makeprofits. As for margins there would be several up trim versions and we will have our margins spreadover those versions.There has been widespread apprehension that this car would create congestion because of its sheernumbers...All the question of congestion implies that we will seek the global market with millions of thesevehicles. They don’t have the resources to do that. But we are country of a billion people. MostIndians are denied connectivity and this is a way.India desperately needs a mass transport system and better infrastructure. But those are issues thatthey don’t deal with. They would be concerned if vehicle created absolute chaos all over India. Ifyou faced chaos today it did not include these vehicles...so clearly there are other issues involved.This car is not a targeted at a particular segment of consumers. But having said that they hope it willchange the manner in which one travels in semi urban and rural India.Everybody has a desire of stepping aside, of wanting to do what one always wanted to do, to changegears. I have some responsibilities which I have to fulfill before I do that.They don’t think anyone should have sleepless nights. This was achieved by a bunch of youngengineers. And if we could do it, it can be done by anyone, probably better. The largest element ofcost in a car is material cost. India is not the cheapest on that count due to the tariff structure. Butlabor is inexpensive and productive. And engineering inputs are very viable.Everybody seems to imply that if you are at the low end of the market, how you can look at high-endcars. But no one asks Unilever for instance how they can make and sell cheap soaps in India orAfrica and also expensive cosmetics elsewhere in the developed world. 18Projectsformba.blogspot.com
  • 19. Projectsformba.blogspot.comFUNDAMENTAL ANALYSIS • Overview of Indian Economy • Industrial Profile • Profile of Indian Automobile Industry • Tata Motors(1) Overview of Indian Economy• The Indian economy continued to register impressive GDP growth, although the rate of growth declined marginally over the previous year, reflecting inflationary trends driven by the increase in the cost of energy and raw materials. The level of industrial activity has also begun to decline as a result of fiscal constraints imposed on money supply and the raising of interest rates .• Investment flows into India increased by 20% to a record level of about Rs. 120,000 Crores.• The Indian automotive sector grew by 10% overall during the year with substantial growth in the Light Commercial Vehicles sector and new passenger car introductions. In the country 499,978 new commercial vehicles were sold during the year and passenger car sales grew to 1.53 million vehicles this year. (2)Industrial ProfileTable 7.1 annual growth rate of Industrial Production in major sectors of Industry. ( Based on the index of Industrial Production Base: 1993-1994=100 (Per Cent)Period Manufacturing Manufacturing Electricity Overall & QuarryingWeights 10.47 79.36 10.17 100.01995-96 9.7 14.3 8.1 13.001996-97 -1.9 7.3 4.0 6.11997-98 6.9 6.7 6.6 4.71998-99 -0.8 4.4 6.5 4.11999-00 1.0 7.1 7.3 6.72000-01 2.8 5.3 4.0 5.02001-02 1.2 2.9 3.1 2.72002-03 5.8 6.0 3.2 5.72003-04 5.2 7.4 5.1 7.02004-05 4.4 9.2 5.2 8.42005-06 1.0 9.1 5.2 8.22006-07 3.8 11.5 7.3 10.6# (April - November)Source: Central situational Organization. 19Projectsformba.blogspot.com
  • 20. Projectsformba.blogspot.com (3)Automobile Industry  The liberalization policy and various tax reliefs by the Govt. of India in recent years has made remarkable impacts on Indian Automobile Industry. Indian auto industry, which is currently growing at the pace of around 18 % per annum, has become a hot destination for global auto players like Volvo, General Motors and Ford.  In India there are 100 people per vehicle, while this figure is 82 in China. It is expected that Indian automobile industry will achieve mass motorization status by 2014.  The passenger vehicle industry also witnessed a slowdown but managed to grow by 11.1% by increasing discounts on mature products, launching new models and due to reduction in excise duty announced by the government in Budget during February’08.  Vehicle exports also grew, albeit at a slightly lower rate of 11.9% as compared to 14.8% witnessed in the previous year  The domestic commercial vehicle industry grew by 6.9% as compared to over 33% growth achieved in the last fiscal Table 7.2 : Automobile Production (Numbers in 000)Category 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 till sep`06Passenger car 513 564 609 842 961 1,046 594Multi-utility Vehicles 128 106 112 146 249 263 144Commercial Vehicles 157 163 204 275 350 391 237Two Wheelers 3,759 4,271 5,076 5,625 6,527 7,600 4,155Three Wheelers 203 213 277 341 374 434 264Total 4,759 5,316 6,280 7,229 8,461 9,735 5,394Growth in percent - 2.00 11.70 18.60 15.12 16.80 14.97 18.04Source: Ministry of heavy industries & Public Enterprise (Department of Hheavy Industry) Automobile Company. Alfa Citroen Hummer Lamborghini Maserati Porsche Tara Romeo Aston Ferrari Hyundai Lexus Mercedes Premier Tata Martin Audi Fiat ICML Lorinser Mercedes Proton Toyota AMG Bajaj Force Motors Infiniti Lotus Mini Rolls Royce Volkswagen Bentley Ford Isuzu Mahindra Mitsubishi SAN Motors Volvo BMW GM-Wuling Jeep Mahindra Nissan Skoda Renault Cadillac Hindustan Maybach Maini Auto Oreva Smart Motors Chevrolet Honda Land Rover Maruti Peugeot Spyker 20 Projectsformba.blogspot.com
  • 21. Projectsformba.blogspot.com  Automobile Export Table 7.3: Automobile Export category 2000-01 2001-02 2002-03 2003-04 2004-05 20005-0 2006-07 6 Passenger 23 50 71 126 161 170 98 car Multi-utility 4 3 1 3 6 5 3 Vehicles Commercial 14 12 12 17 30 41 23 Vehicles Two 111 104 180 265 367 513 323 Wheelers Three 16 15 43 68 67 77 62 Wheelers Total 168 185 307 479 620 806 519 Growth in 20.24 9.74 65.35 55.98 31.25 28.03 27.43 percentAbout Small car industries and Tata MotorsAn ancient time after inventing wheel of potter, It took about 750 years to make wheels of cart. Oneunknown inventor used the wheel of potter to make wheel of cart, this invention initiated the new eraof Transportation of goods and men. Then new era has been starting by making usage of two wheelerand four- wheeler vehicles by the human being.Exactly 100 years ago, in the year 1907, Henry Ford introduced Car in America (U.S.A.) whichtriggered “Automobile or (Transportation) Revolution” . In India, exactly 50 years ago in the year1957 first Domestic Ambassador car was introduced by Hindustan Motors.After that, in our country there are number of companies who make two-wheeler, three-wheeler andfour-wheeler vehicles. There are number of company who makes small cars such as Hundai, TataMotors, Maruti Udhyog, General motors, etc. are putting up massive capacities that will make Indiathe small car hub of the world. India is the world’s largest country of producing small cars. In India,in the year 1983 “Maruti-800” is the first domestic small car introduced in the market.The Cheapest Cars of the WorldSerial No. Model Name of Company Price (US$) Country01 Nano Tata Motors 2500 India02 QQ-3 Cherry Automobile 5000 China03 Maruti-800 Suzuki Maruti 5200 India04 Merry-Star Zeeli Automobile 5500 China05 S-R-V Zeeli (Mini S.U.V.) 5780 China 21Projectsformba.blogspot.com
  • 22. Projectsformba.blogspot.comThe market share of small ca is increasing day by day. In the year 2004-2005 the share of small carwas 57.71% and 10,61,572 small cars were sold, and in the year 2007-2008 it was 60.63% and17,50,000 small cars were sold. Now it is expected that Small car market will grow at 12 to 15% thisyear and sales volume of over 1.5 million small cars.Small car Market Share of different manufacturing companyManufacturer Location Capacity Investment Completion Time (Units/P.A) (In Crore)Maruti Suzuki Gorgoan (Haryana) 300000 9000 In 2010Hyundai Irungattukottai 300000 4000 February 2009 (Chennai)Tata-Fiat Ranjangaon (Pune) 100000 4000 Late 2008Tata Motors Singur (West Bengal) 350000 1500 Late 2008General Talegaon (Pune) 140000 1200 Mid-2008MotorsHonda city Bhiwadi (Rajasthan) 60000 1000 Mid-2009The main objective of many of these manufacturing industries is to expand India’s car exports fromaround 2, 20,000 units per year.In recent time Tata Motors launched “NANO” (People’s car) on 10th January,2008 Thursday at theninth Autoexpo at Delhi. The launching of “Tata-Nano” car by Mr.Ratan Tata is a defining momentin the history of India’s Automobile Industry and this event was attended by about 400 mediapersonnel and was on air by various television channels.The Journey of Tata Motors from Train to Truck, from Truck to Nano Car. • 1945 : TELCO (Tata Engineering and Locomative Company starts work after completion • of second world war. • 1954 : TELCO starts to make Trucks in Joint Venture with German Company Daimler Benz. • 1994 : It starts to make Mercedes Benz in Joint Venture, first time in India, • 2002 : Partnerships with Daimler Benz came to an end. • 2002 : The Name of TELCO Company change and known as “Tata Motors” • 2003 : Ratan Tata declared to make worlds Cheapest car for Rs.1 lac. • 2004 : Tata Motor take over “DEVU” Company of South Korea and got listed in NewyorkStock Exchange • 2005 : Tata Motors purchased 21% share holding of Spanish Bus. • 2008 : Tata Motors launch 100000.00 Rupees the Cheapest Car of the world. 22Projectsformba.blogspot.com
  • 23. Projectsformba.blogspot.comTata group is one of the oldest and the most reputed group of companies in India. The founder of thisgroup was Sir Jamshedji Tata. Earlier “Tata Motors” known as “TELCO” (Tata Engineering andLocomative Company). It commenced work in the year 1945 after completion of Second World War.Initially company was manufacturing truck and then in the year 1994 TELCO Co. started theproduction of Mercedes-Benz, Joint Venture with “Demler Benz Co.” of Germany. In the year 2002the name of TELCO Co. changed to “Tata Motors”Tata Group comprises 98 operating companies in 7 business sectors as Information Systems,Communication, Engineering, Materials, Services, Energy, Consumer Products and Chemicals. TataCompanies provide employment to about 2,89,500 people and have share holder’s base of over 2.9million and market capitalization of 66.9 billion as on February 21,2008.Tata motor is a second largest company in the world in making passenger vehicle and heavy busManufacturing with revenue of US$ 7.2 billion in the year 2006-’07.In the year,2003 Mr. Ratan Tata the Chief of Tata Group declared that he will make the worldscheapest Car with dealer Price of Rs.1,00,000/- At that time many member of different Automobilecompanies passed comment for Mr.Ratan Tata and their Mission. One member of Osamu Suzukisaid that-“this is impossible mission” and statement made by him that - “Tata will not be able tomake a Rupees 1, 00,000/- Car. But, Mr.Ratan Tata gave perfect answer to the critics, who said it isnot feasible to manufacture a car in Indian Rupees One lakh.There is one message given by our Prime Minister, Mr.Manmohan Singh.He said that “If our timeand energy are consumed for worthless thoughts then how effectiveness can comes in our task?” Insame way Mr.Ratan tata fulfilled their dream by giving an opportunity to the middle class people thatto have own car. He said that “Ever since we started work on the car, we have been hearing variousnegative statements” at that time he put their full concentration behind making 1,00,000 Rs. Car andat that time if they waste their time and energy behind thinking of these all negative statements thentoday, Tata-Nano Car will not be among us.The motivation of Mr.Ratan Tata to make one lakh Rs. Car is due to one Observation he made andwhich motivated him to make the cheapest car with Dealer price of Rs. 1,00,000/- . We will knowabout that observation in his own words, He said that “I observed family riding on two-wheeler thefather driving the Scooter, his young kid standing in front of him, his wife seated behind him holdinga little baby and, I decided to do something about it and it led to me to provide affordable, a safe, allweather from a transport for such a family.” This was disclosed by him after displaying their dreamproject at ninth Autoexpo, at Delhi.Mr.Ratan Tata give dream to the middle class people as well as youth who are from middle class bymaking car whose price will be affordable and attractive.  Tata Motors Limited, formerly known as TELCO (TATA Engineering and Locomotive Company), is a multinational corporation headquartered in Mumbai, India. It is Indias largest passenger automobile and commercial vehicle manufacturing company. Part of the Tata Group, and one of the worlds largest manufacturers of commercial vehicles. The OICA ranked it as the worlds 20th largest automaker, based on figures for 2006.  Tata Motors has its manufacturing base in Jamshedpur, Pantnagar, Lucknow, Pune. 23Projectsformba.blogspot.com
  • 24. Projectsformba.blogspot.com  Tata Motors was established in 1945, when the company began manufacturing locomotives. The company manufactured its first commercial vehicle in 1954 in collaboration with Daimler-Benz AG, which ended in 1969.  In March 2008, it finalised a deal with Ford Motor Company to acquire their British Jaguar Land Rover (JLR) business, which also includes the Rover, Daimler and Lanchester brand names.The purchase was completed on 2nd June 2008  Companies Performance Total Industry. Sales (Nos.) Total Com. Sales (Nos.) Mkt. Share (%) Category 2007-08 2006-07 Growth 2007-08 2006-07 Growth 2007-08 2006-07 Commercial 5,58,977 5,17,327 8.1% 3,52,785 3,34,238 5.5% 63.2% 64.7% Vehicles Passenger 17,50,347 15,75,235 11.1% 2,32,864 2,46,042 -5.4% 13.3% 15.6% Vehicles Total 23,09,324 20,92,562 10.4% 5,85,649 5,80,280 0.9% 25.4% 27.8% Domestic Industry. Sales (Nos.) TCom. Sales (Nos.) Mkt. Share (%) Category 2007-08 2006-07 Growth 2007-08 2006-07 Growth 2007-8 2006-07 M&HCV 2,70,994 2,75,556 -1.7% 1,65,619 1,72,842 -4.2% 61.3% 62.9% LCV 2,28,984 1,92,234 19.1% 1,47,316 1,25,744 17.2% 64.3% 62.9% Total CV 4,99,778 4,67,790 6.9% 3,12,935 2,98,586 4.8& 62.7& 64.0%  News from various surveys and research worldwide  Small cars have big potential: Survey Business Standard: January 15, 2008  Tata Nano sets the platform for India as a frugal engineering hub livemint.com: January 11, 2008  Global problems, Desi solutions The Economic Times: May 15, 2008  Nano makes it to Times most important cars of all time The Hindu Business Line: January 17, 2008  Indian auto industry to lead globally by 2020: IBM New Delhi: The Indian automobile industry is all set to be the global leader by 2020 with the trailblazing work done by the Tatas, according to IT and consultancy giant IBM. September 08, 2008 (sources : Indian Brand Equity foundation www.ibef.org)  The car itself is expected to boost the Indian Economy as well as expand the Indian car market by 65%, according to rating agency CRISIL. 24Projectsformba.blogspot.com
  • 25. Projectsformba.blogspot.comOBSTACLES TO NANOControversies Involved Controversies also arose about Tatas planned manufacturing unit for the car in Singur, WestBengal, where the state government of West Bengal has allocated 997 acres (4.03 km²) to TataMotors. The construction of the car factory on that tract of land will require fertile agricultural landand the expropriation and eviction of ca. 15,000 peasants and agricultural workers.The affected farmers fear they will receive inadequate or no compensation and therefore lose theirlivelihoods. Activists near Kolkata, where Tatas manufacturing unit is located, started burning thecar in effigy.In New Delhi, a group of six women protested wearing T-shirts bearing slogans that said, "The Rs 1lakh car has Singur peoples blood on it." The Trinamool Congress alleged that Tata motors usurpedthe agrarian land for the construction site and have threatened to stall the manufacture of the car. The11 cases were dismissed.The Nano is alleged to have severely affected the used car market in India, as many Indians opt towait for the Nanos release rather than buying used cars, such as the Maruti 800 (a rebadged SuzukiAlto), which is considered as the Nanos nearest competitor. Sales of new Maruti 800s have droppedby 20%, and used ones by 30% following the  However, Due to the Singur land dispute, the "Stalled Car Factory" is "Costing Jobs, Splitting Neighbors in West Bengal”  “ Tatas problems in West Bengal are scaring off other industries hoping to locate here, including Infosys, a software maker that wanted to build a business park that would provide 5,000 jobs.  Due to ongoing opposition to Tatas Singur car-factory by Mamta Banerjee, who demanded land to be returned from the factory, Tata Motors took decision to pull out of Singur. Tata Motors is manufacturing Tata Nano at its Pantnagar plant.  Tata Motors announced it was pulling out its Nano small car industrial project from West Bengals Singur and blamed the Mamata Banerjee-led Trinamool Congress, which spearheaded the protests against the factory, for the painful decision.  While existence of Tata Nano could lead to high industrial growth , the exit lead west Bengal a loss of more than 80,000 crore .How ever Tata has to suffer in terms of delay and settlement cost .The decision to relocate the Nano to Gujarat marks the end of a traumatic experience for the house ofTatas. It was the rapid decision making of the Gujarat government which carried the day for theNarendra Modi government, with the state government ready to hand over land within a matter ofdays.In an interview shortly before rushing off to meet the CM, Mr. Tata looked back on the Singurexperience and spoke about the new scenario facing the Nano. Intriguingly he left some hope forSingur saying that Tata Motors could revisit Singur if the atmosphere was conducive 25Projectsformba.blogspot.com
  • 26. Projectsformba.blogspot.comLast night. Ravi (Tata Motors MD Ravi Kant) has been going around reviewing various sites. Thefinal decision was taken last night. In fact, we have been receiving letters from various stategovernments ever since we faced problems (at Singur). Land was the main issue. It was a kind ofinsurance (at the time). But there was a tremendous urgency once we made the statement on 22August that we would move if things didnt improve as we had already lost a lot of time. We startedto respond sometime in September to the offer from the states. We started running around looking atthe land. The same people had to look at the land on offer (to make a proper comparison). TheGujarat chief minister moved really fast, and yesterday, we took the decision. In other states therewere processes to be gone through or things which the legislative assembly had to do which may ormay not happen despite the best intention of the chief minister of the state. Gujarat enjoys thereputation of being an investment-friendly state. So we decided late on Monday evening that we mayas well go with Gujarat as everything was in placeWell, when I said that, this project was not on our minds. We were already in Gujarat through TataChemicals. And as luck would have it, we are here again.Gujarat was able to define the land, secure possession of the land, the main thing, at an unbelievablyfast pace. In fact, if we could move a plant in a day, we could have actually have started operatinghere, given the fact that everything was ready in the state.Gujarat doesnt believe in concessions. How did Gujarats offer compare with that of West Bengal?Well, it is almost similar. Whatever we were offered in Singur, everything is being matched here.The elements (incentives) may not be identical, but in totality, the package is the same.You plan to launch the Nano this winter from Pantnagar and Pune which have a capacity of onelakh? How will you tackle a situation if the demand (for Nano) explodes?It would be a makeshift kind of operation. Unlike a steel plant where capacities are fixed, in carmanufacturing you can outsource, you can redefine assembly lines. We need to represent to theworld that despite all this, we brought the car within the set timelines.What impact would this relocation have on the company books?All equipment from Singur will be moved. So, there is no loss there. We can retrieve and utilize afair amount of the fixed assets. There is no appreciable loss that will reflect on our finances this year.It is not that the investment of Rs1, 500 crore is lost. As for Singur we already have the land allottedto us. The state government wants us to look at other projects and we will look at other projects. It isnot that there will be a crater there. We will do something in Singur in future if the state governmentwants us to do something. We will do something, if the environment is conducive.I dont know how much was the farmers problem (and how much was political). Political oppositionshould be subordinated to the better welfare of the country. Who is the loser? Are the people reallygoing to prosper, many of whom are below subsistence level? I am sure, (despite this), West Bengalwill attract more investments. What about the people who had aspirations for jobs? These are thequestions that come to my mind. Political opposition must hold the (interests) of the country first andthen the state. I think, it is impacting everything. It is percolating like a coffee machine. We arefacing a downturn because of the tightness of credit. The US and Europe are still reeling because ofthe write-offs and it is having a Dominos effect in other industries. So nobody seems to know whereit will bottom out. 26Projectsformba.blogspot.com
  • 27. Projectsformba.blogspot.comCOMPETENCIES OF TATA NANO • Tata is now 57th most valuable brand globally livemint.com: April 22, 2008 The Tata group’s intense activities in 2007 have seen it rising 45 places to No. 57 in Brand Finance Top 500 Global Brands • Expectations According to one report, India as well as other nations, such as European nations[, have great expectations from the Nano and are keenly and eagerly eagerly awaiting it, especially the electric version of the Nano. • Modular design In fact, Tata envisions going even further, providing the tools for local mechanics to assemble the car in existing auto shops or even in new garages created to cater to remote rural customers. With the exception of Manjeet Kripalani, BusinessWeeks India bureau chief, few have focused on this breakthrough element of the Nano innovation (BusinessWeek.com, 1/10/08). • Pricing strategy Tata initially targeted the vehicle as "the least expensive production car in the world"— aiming for a starting price of 100,000 rupees or approximately $2300 US despite rapidly rising material prices • Export expectation Being world’s cheapest car it is expected that not only India demand for Nano will go rise at global level. Since it meeting Euro-4 norms at this price so this is taking as a future of small car segment. • Reputation and Acceptance of Tata After launch “TATAs have shown the world what Indian engineering is truly capable of” Financial Times U K reports • Enthusiastic support Tata Motors is receiving preliminary and some very enthusiastic support in the media and officials, even from Europe, for the electric-version from India as well as other-nations. The enthusiasm is even higher than that for the petrol-version 27 Projectsformba.blogspot.com
  • 28. Projectsformba.blogspot.comFUTURE OF NANO • Will the Nano succeed? • Car of the Future? • Is it fair to blame the Nano for the (upcoming) ills of Indian road infrastructure? • What do you think? Is the Nano a car of the future? Or just another Yugo debacle waiting to happen? Would you drive one? • Emerging markets are a fertile ground for innovation. The challenge of reaching dispersed, low-income consumers in emerging markets often spurs significant innovation. • As customers gain more power, they will demand more tailoring and value-added service to meet their needs. Companies that innovate on this dimension are likely to be richly rewarded. • World is getting tougher day by day being unique is a competitive advantage. Expectations to Nano has proved this . • After 100 years to Henry Ford , Tata has proved him again not only he came out of the expectations but also came out with a platform for Indian auto sector . • So this as per this project conclusion can be draw as a future car not only of Indian but also if exported than could be to the world.These are the automobile Car Company of the India.This is something Im going to talk about at the launch. For now, let me just say our car will causeless pollution than a two-wheeler.Im trying to think of a parallel where someone has introduced a product at a disruptively low priceand changed the market. A good example would be the Swatch watch, low-cost, trendy and with awide range. Did Swatch finish off the Swiss watch industry? No (in fact, it was a Swiss company thatcreated Swatch, the same company that produced Omega). Did it finish off Citizen and Seiko andother Japanese competitors? No. Did Swatch cause the Japanese and others to produce somethinglike the Swatch? Yes, it did, but Swatch continued to dominate its niche. 28Projectsformba.blogspot.com
  • 29. Projectsformba.blogspot.comCOMPETITION ANALYSISThe Structure of the competitor: Michel Porter has identified five forces that determine the intrinsiclong run profit alternativeness of a market segment: Indutry Competitions, Potentials Entrants,substitudes, buyuer and suppliers. His model is showing in following figure. Potentials Entrants Threats of new Entrants Bargaining Bargaining power of power of Suppliers. Buyer Suppliers. Buyers INDUSTR Y Threats of Substitute’s products Or services Substitutes(1)Threats of intense segment rivalry: segmentation is unattractive if it already contains numerous,strong or aggressive competitors.Maruti 800, Maruti Omni, Spark(2) Threats of new Entrants: segmentation attractiveness varies with the height of its entry barriers. hemost attractive segmentation is one in which entry barriers are high and exit barriers are low. Few newfirms can enter the Industry and poor performing firms can easily Exit. • In every month one Car to be Launched by many Automobile Industry.(3)Threats of substitutes Product: segmentation is unattractive when there are actual or potentialsubstitutes for the product.substitudes place a limit on Price and Profits. • Two wheelers like Bikes, Scooter and moped • Battery Vehicles • CNG Vehicles 29 Projectsformba.blogspot.com
  • 30. Projectsformba.blogspot.com(4)Threats of buyers “Growing” bargaining power: segmentation is unattractive if the buyer’sposse’s strong or growing bargaining power. Buyers bargaining power grows when they become moreconcentrated or organized. • People are Conscious about price and Quality • Wrong perception of Customers about Nano as loe prices lead to poor quality , Mileage(5) Threats of suppliers “Growing”Barganing power: segmentation is unattractive if companiessuppliers are able to raise price or reduce quantity supplied. Suppliers tend to be powerful when theyconcentrate or organized. 30 Projectsformba.blogspot.com
  • 31. Projectsformba.blogspot.comMARKET SEGMENTATION Segmenting Consumer Market: Two broad groups are used to segment Consumer Market. Some researchers try to form segment by looking at descriptive characteristics; Geographic, Demographic and Psychographic. Then examine whether these Consumer Segment exhibited different needs or products responses. Other researchers try to form segments by looking at “Behavior” Consideration, such as consumer response to benefits, the use occasion, or Brand. Once segment are formed. these researchers sees whether different characteristics are associated with each consumer response segment. For Example researchers might examine whether people who want “Quality” rather than “Low Price” in buying Auto Mobile differ in their Geographic Demographic and Psychographic make up. The major segmentation variables are - Geographic Demographic and Psychographic and Behavioral Segmentation. GEOGRAPHIC: 1.Region North Gujarat 2.City Gandhinagar 3.Rural And Semi Urban Area Rural villages with a population over 10,000; semi urban Areas; small towns with population between 20,000 and 50,000 DEMOGRAPHIC: Age >18 Family Size >5 Gender Male or Female Income > 10,000/month Occupation Student, Govt Service, Private Service, NGO, Any Other. PSYCHOGRAPHIC: Lifestyle Culture oriented, Sports oriented, Outdoor oriented Compulsive,Gregarious,Authoritarian,Ambitious Personality BEHAVIORAL: Occasions Regular, Special Benefits Quality,Service,Economy,Speed User Status First time user, Regular user User Rate Heavy Loyalty Status Strong, Absolute Readiness Stage Aware, Informed, Interested, Desirous Attitude towards Product Enthusiastic, Positive 31 Projectsformba.blogspot.com
  • 32. Projectsformba.blogspot.comGEOGRAPHIC SEGMENTATIONGeographic SegmentationGeographic segmentation calls for dividing the market into different geographical units such asnations, states, regions, countries, cities or neighborhoods. In the Indian context geographicsegmentation assumes importance due to variations in consumer preference & purchase habits acrossdifferent regions and states of the country.One of the major geographic segmentation variables relevant for marketers in India is the division ofmarkets into rural and urban areas. Differences in urban & rural markets, based on differentparameters including market potential, have major implications for marketers. The need to segmentthe market geographically becomes clearer when we look at some of the characteristics of themarket. In India, there are more than 5000 towns & over 638000 villages.Geographic markets also vary in their product requirements. In arid regions of western India such asRajasthan & Gujarat during hot & dry summer seasons, air coolers are used. However, this productineffective in areas like where climate is hot & humid during summer.DEMOGRAPHIC SEGMENTATION:Demographic Segmentation:Demographic Segmentation divides the market into groups on the basis of variables such as age,family size, life cycle, gender, income, occupation, education, religion, nationality, race, generation,& social class.(a) Age: The age of consumers of Tata Nano are generally above 18 which is minimum required fordriving the car in India.(b) Family Size: Generally the families of four to five members prefer to purchase the Tata Nanobecause it is more suitable than any other cars like 800 as per body size Maruti 800 is big then Nanobut internally it has 30% more space than 800.(c) Gender: Generally the gender does not affect the demand of Tata Nano because both male &female drive this car but male appears much driving the Nano(d) Income: The income of consumer is one of the most affecting factors. The family or the personwhose income is Rs. 10,000& Per Month can afford the Tata Nano. 32Projectsformba.blogspot.com
  • 33. Projectsformba.blogspot.comPSYCHOGRAPHIC SEGMENTATIONPsychographic SegmentationPsychographics is the science of using psychology & demographics to better understand consumers.In psychographic segmentation, buyers are divided into different groups on the basis ofpsychological/personality traits, lifecycle, or values.Psychologically is called Life Style segmentation.(a) Lifestyle: The lifestyle of the consumers plays an important role in the choice of cars. Generally the consumers of Lower middle class prefer to buy the Tata Nano because their lifestyle neither too much high nor too much low.(1) Needs Motivation : If we see the advertise of Tata nano then we can understand about the car,in every media of the advertisement like, News paper, Television, Radio we can see or here someattractive news or information like Milage,Colour,Design,Speed,Price,Discount Loan System, fromthat we can Motivate our self for purchase that car.There are two types of Needs(A)Innuate Needs: Relation with body, its called Primary Need Exam-Food, Water(B)Enquired Need: as per the Society you have to full field they needs, it’s called Secondary Needs. MOTIVATIONAL PROCESS(2) Perception: Perception is very basic and fundamental factor which directly or indirectlymotivates or de-motivates people for purchase any thing.People have positive attitudes toward Tata Motors of the providing excellent services provides byTata Steel and Tata Motors. 33Projectsformba.blogspot.com
  • 34. Projectsformba.blogspot.comBEHAVIORAL SEGMENTATIONBehavioral SegmentationIn Behavioral Segmentation, buyers are divided into groups on the basis of their knowledge of,attitude toward, use of, or response to a product.(A)OCCASIONS: The car generally for the regular purpose of the family & also special occasions.Indian people are very traditional so they buy car at the special occasions like on Birth Day, MarrigeAnniversary or any Festival like Diwali,Dasera, Akhatri Bij and others. In India at on these occasions selling volume of the Car is always increasing every year. 34Projectsformba.blogspot.com
  • 35. Projectsformba.blogspot.com RESEARCH OBJECTIVES:What is research? In simple words, research is the study of materials and sources in order toestablish facts and to reach at new conclusions.According to American Marketing Association “Research is the systematic and objectiveidentification, collection, analysis, dissemination, and use of information for the purpose of assistingmanagement in decision making related to the identification and solution of problems (andopportunities) in marketing.”Any research or study starts with Question or problem and research is undertaken to get the solution.Following are the objectives to undertake the research.The very first step in marketing research process is to define carefully the objectives of the study. Itis important for the researcher to agree art the outset on the purpose and objectives of the study toensure that the research design is appropriate. A carefully thought out statement of objectives helpsto define the types and the level of information.Types of Research:There are mainly two types of market research the first one is problem Identification and second oneis problem solving market research. 1.) Problem Identification Research : Research that is undertaken to help to identify problems which are not necessary apparent on the surface and yet exist or are likely to arise in the future. For example, what will be the consumer’s behavior while making decision for purchasing “Tata-Nano” car and to know the consumer response whether it will be negative or positive. 2.) Problem solving Research : Research is undertaken to solve specific marketing problems. For example, After putting “Tata- Nano” in market and there will be negative response and low demand for it then to find out the reasons for its negative demand in the market and to find out those reasons through research. For example, “Tata-Motors” also undertake research to get the answer of following questions Before they take decision to launch a new small car or not. 1. Who are my customer and potential customer? 2. What kind of people they are? 3. Where do they live? 4. Can and will they buy? 35Projectsformba.blogspot.com
  • 36. Projectsformba.blogspot.comResearch helps us to get the answer of above mentioned questions.Thus, research helps producer to collect the information which reduces business risk. It helpsproducer to identify sales opportunities and to develop action plans.Following are the objectives of this Study:Research is undertaken for following reasons.1. To know awareness of potential customers about “NANO”2. To Know the Perception of people toward pre-launched Tata Nano Car. 36Projectsformba.blogspot.com
  • 37. Projectsformba.blogspot.com RESEARCH METHODOLOGYTypes of Research Design Exploratory research DesignSource of Data A. Primary data : Survey method B.Secondary data : Internet, Magazine, News papers (Economics Times, Business Standard & Gujarat Samachar,ICFAI General)Research Equipment Questionnaire Sampling Technique Non Probability Technique - Convenience sampling method Sample Size 150 SamplesArea of Research Gandhainagar Research design: Classification of Research Design: there are main two types of Research Design. Research Design Exploratory Research Conclusive Research Descriptive Research Casual Research We had considered exploratory research design for my project in order to know awareness of the potential customers and I want to know the willingness of potential customers to buy “Tata-Nano” car. For this study, I have considered exploratory research and descriptive research to know the awareness and purchase intention of potential customers as well as to know the characteristics of groups such as respondent’s age, their gender, education, income, occupation etc. Sources of data: To study the problem and to reach at conclusion , data are essential which are collected from following sources. Sources of Data 37 Projectsformba.blogspot.com Primary Data Secondary Data
  • 38. Projectsformba.blogspot.com1. Primary Data : It means Data originated by the researcher for the Specific Purpose of addressing the research problem. “Primary Data are collect to conduct the study and helped to reach at the conclusions from the findings. In this study , the primary data were obtain by survey method with the help of structured questionnaire. Data were collected with the help of the response of respondents, they provide information through questionnaire. 2. Secondary Data : “It means that Data collected for some purpose other than problem at hand”. In this study, the secondary data obtained from the websites, newspapers and Magazines.Survey Methods:The Survey method involves a structured Questionnaire, given to respondents which is designed toobtain response or reaction for specific information.There are four survey methods. Methods of Survey Personal Telephonic Mail Electronic Interviewing Interviewing Interviewing Interviewing In-Home Interview Mall Intercept Computer AssistedTo collect the primary data, I have used personal interviewing method. Respondents wereinterviewed at their home, so, I relied upon in-home survey method. Respondents were interviewedface to face at their homes. The task of Interviewer is to contact respondents, ask the questions andrecord their response.Research Instrument:To obtain Primary data for this research I used survey method by designing Questionnaire.”Questionnaire is a structured technique for data collection that consists of a series of questions,written or verbal that a respondent answers.” Questionnaire is a set of a questions through which wecan obtain necessary information from respondents.” We can collect the information such as thebehavior, attitude of respondents etc . . . . We can also understand facts, their awareness, belief andtheir future action plans. 38Projectsformba.blogspot.com
  • 39. Projectsformba.blogspot.com Types of Questions Structured Electronic Questions Interviewing Multi- Open- Closed- Ranking Scale Dichotom Ended Ended Choice ouWe had collected information from respondents with the help of structured questions using multichoice questions, dichotomous and ranking questions for the primary Data.Sample and Sampling: -Sample means the unit or segment of the population selected forinvestigation or search. Sampling is the Procedure by which using a small number parts of the wholepopulation we reach up to conclusion regarding the whole population. There are mainly two types ofsampling techniques are given below. In this study, to get Information from respondents, we had considerednon probability sampling technique and select sample from total population through conveniencesampling method. In non probability sampling technique the chances of selection of all elements ofpopulation are not equal and convenience sampling method means sample drawn at the convenienceof the interviewer people tend to makes the selection at familiar location and choose respondentswho are like themselves. 39Projectsformba.blogspot.com
  • 40. Projectsformba.blogspot.com DATA INTERPRETATION AND ANALYSIS (1) Gender: Gender 44 Male Female 106 Male 106 Respondents are male Female 44 Respondents are female Total 100 Respondents (2) Age: Below 20 Respondents age are below 20 Years 20-25 Respondents age are between 20 to 25 Years 25-30 Respondents age are between 25 to 30 Years 30-35 Respondents age are between 30 to 35 Years Above 35 Respondents age are above 35 Years 40Projectsformba.blogspot.com
  • 41. Projectsformba.blogspot.com (3) Occupation: Student 35 Respondents age are Student Govt Service 60 Respondents age are Govt Service Private Service 38 Respondents age are Private Service NGO 03 Respondents age are NGO Any Other 14 Respondents age are Any other (4) Monthly (Family) Income: Monthly Income 14 37 Below 10000 31 10000-15000 15000-20000 20000-25000 29 Above 25000 39 Below 10,000 14 Respondents were Monthly Family Income Below 10,000 10,000 – 15,0000 31 Respondents were Monthly Family Income 10,000 – 15,0000 15,000 – 20,000 39 Respondents were Monthly Family Income 15,000 – 20,000 20,0000 – 25,0000 29 Respondents were Monthly Family Income 20,0000 – 25,0000 Above 25,000 37 Respondents were Monthly Family Income Above 25,000 41Projectsformba.blogspot.com
  • 42. Projectsformba.blogspot.com (5) Family Members: Family members 20 43 Below 3 3--5 Above 5 87 Below 3 From 150 Responded 20 Responded have below 3 Family Members 3-5 From 150 Responded 87 Responded have 3-5 Family Members Above 5 From 150 Responded 43 Responded have Above Family Members (6) Are you from the urban area or rural area? Area 29 Urban Rural 121 Urban 121 Responded are from Urban area Rural 29 Responded are from Rural area 42Projectsformba.blogspot.com
  • 43. Projectsformba.blogspot.com (7)Do you have any vehicle? Vehicle 20 yes No 130 Yes 130 Responded have Vehicles No 20 Responded have not Vehicles If yes, then which type vehicle do you have? Types of vehicle 14 21 Moped 31 Scooter 36 Motor-Cyclle Car Any Other 67 Moped 21 Scooter 36 Motor-cycle 67 Car 31 Any other 14 6 Responded have Moped & scooter 8 Responded have Moped & Motor Cycle 2 Responded have Moped & any other Vehicles 6 Responded have Moped & car 8 Responded have scooter & Motoe Cycle 43Projectsformba.blogspot.com
  • 44. Projectsformba.blogspot.com 8 Responded have Scooter & car 3 Responded have Scooter & any other vehicles 11 Responded have Motor-Cycle & Car 2 Responded have Motor-cycle & any other vehicles 4 Responded have scooter, Moped & Car 2 Responded Have scooter, Moped, Car & Motor-cycle (8)Do you want to purchase car? Wish to Purchase 39 Yes No 111 Yes From 150 Responded 111 responded want to purchase Car No From 150 Responded 39 responded do want to purchase Car If yes then, which small car you prefer in your family? Preference 1 6 15 Maruti 41 Hyundai Tata Skoda G.M 40 8 Fiat Maruti From 111 responded 41 prefer to Maruti Tata From 111 responded 40 prefer to Tata Hyundai From 111 responded 8 prefer to Hyundai Skoda From 111 responded 15 prefer to Skoda General motors From 111 responded 41 prefer 1 to G.M Fiat From 111 responded 6 prefer to Fiat. 44Projectsformba.blogspot.com
  • 45. Projectsformba.blogspot.comMaruti is top level and best choice Small car of people then people prefer to Tata Specify the rank order for the following criteria for the selection of car. Rank Order Mileage 11 15 Look 18 10 Speed Low Maintenance Pick-Up 10 19 Barand Name 17 Low Price Mileage 15% preference to Mileage Look 10 % preference to Look Speed 19% preference to Mileage low Maintenance 11% preference to Mileage Pick-up 10 % preference to Mileage Brand Name 18% preference to Mileage Low Price 11% preference to Mileage When people wanted to purchase car first they give preference to sped then they preference to low maintained then Mileage (9) According to you Tata Nano car is: Tata Nano is 58 Family Car Taxi 83 Personal Car 9 45 Projectsformba.blogspot.com
  • 46. Projectsformba.blogspot.comFamily Car 83 responded believed that Tata Nano is family CarTaxi Car 9 responded believed that Tata Nano is Taxi carPersonal car 58 responded believed that Tata Nano is Personal CarFrom 150 responded 83 responded believed that Nano is family Car 58 people believed that TataNano is Personal car & 9 Responded believed that Nano is Taxi car means some people wanted topurchase Nano as a Passenger car. (10) Are you aware of the promotions of Tata Nano car? Aware of Promotion 0 yes No 150 Yes 150 No 00From 150 Responded all responded were aware about Tata Nano from that we can understand aboutthe Tata Nano PopularityIf yes where? Promotion 12 6 17 Print Media 85 Telecast Media Net Media Outdoor 106 All 46Projectsformba.blogspot.com
  • 47. Projectsformba.blogspot.com Print Media 85 Responded show promotion in print Media Telecast Media 103 Responded show promotion in Telecast Media Net Media 17 Responded show promotion in Internet Outdoors 12 Responded show promotion in Outdoors. All above 6 Responded show promotion in all media85 Responded show promotion in print Media like news paper magazine or any book , 103Responded show promotion in Telecast Media like Television , 12 Responded show promotion inOutdoors like poster , 17 Responded show promotion in Internet 6 Responded show promotion in allabove Media. 62 Responded show promotion of Tata Nano in Print Media & Telecast Media 07 Responded show Promotion of Tata Nano in Print Media & Outdoors 15 Responded show Promotion of Tata Nano in Print Media & Net Media 15 Responded show Promotion of Tata Nano in Telecast Media & Net Media 09 Responded show Promotion of Tata Nano in Telecast Media & Outdoors 04 Responded show Promotion of Tata Nano in Net Media & outdoors 16 Responded show Promotion of Tata Nano in Print Media, Telecast Media & Net Media 07 Responded show Promotion of Tata Nano in Print Media, Outdoors & Net Media (11) Would you like to purchase Tata Nano? Purchase of Tata Nano 54 Yes No 96 Yes 96 Responded want to purchase Tata Nano No 54 Responded do not want to purchase Tata Nano From 150 responded 111 responded wanted to purchase car and from 111 Responded 96Responded wanted to purchase Tata Nano car means 84% Responded wanted to purchase Tata Nano 47Projectsformba.blogspot.com
  • 48. Projectsformba.blogspot.com Please rank the following criteria for selection to purchase Nano car: Rank order of Tata Nano Mileage 12 28 Look 14 Speed Low Maintenance 7 Pick-Up 20 10 Barand Name 9 Low Price Criteria Rank Mileage 12% preference to Mileage Look 14% preference to Look Speed 7% preference to Mileage Low Maintenance 10% preference to Mileage Pick-up 9% preference to Mileage Brand Name 20% preference to Mileage Low Price 28% preference to Mileage When people want to purchase Tata Nano car then They Prefer first Low Price 28%Responded first Prefer to Low Price then second preference is Brand name 20% then responded givepreference at look 14%.Ratan Tata`s Targate wil success to cover maximum middle level people becausemain features of Tata Nano is low Price & 28% people want to purchase nano because of Low price. (12) Do you want to purchase Tata Nano with Petrol Diesel or Gas kit? 48 Projectsformba.blogspot.com
  • 49. Projectsformba.blogspot.com Petrol 29 Responded want to purchase Nano in Petrol Diesel 13 Responded want to purchase Nano in Diesel Gas kit 33 Responded want to purchase Nano in Gas kit Gas kit 21 Responded want to purchase Nano in Gas kit29 Responded want to purchase Nano in Petrol 13 Responded want to purchase Nano in Diesel 33Responded want to purchase Nano in Gas kit 21 Responded want to purchase Nano in Gas kit meansdemand of Gas-kit is very high then people demanded petrol Car, (13)Would you like to purchase Tata Nano in’ Loan’ or ‘Cash’? Cash or Loan 18 Loan Cash 51 Not Decided 27 Loan 51 Responded want to purchase Nano in loan Cash 27 Responded want to purchase Nano in Cash Not Decided 18 Responded want to purchase Nano in Not DecidedIndian Economical level is very low then other country level from 96 Responded 51 Responded wantto purchase Tata Nano in Loan , 27 Responded want to purchase Nano in Cash , 18 Responded wantto purchase Nano in Not Decided to purchase in Loan or Cash. (14) Would you like to purchase Nano instead of Bike? 12345 Tata Nano or Bike 43 strongly isagree 50 Disagree Neutral 19 Agree 24 14 Strongly Agree 49Projectsformba.blogspot.com
  • 50. Projectsformba.blogspot.com Strongly From 150 responded 43 responded Strongly Disagree purchase Nano instead of Bike Disagree Disagree From 150 responded 19 responded Disagree purchase Nano instead of Bike Neutral From 150 responded 14 responded Neutral purchase Nano instead of Bike Agree From 150 responded 24responded Agree purchase Nano instead of Bike Strongly From 150 responded 50 responded Strongly Disagree purchase Nano instead Bike Agree From 150 Responded 43 responded are strongly Disagree to purchase Tata Nano instead of Bike 19 Responded agree for that 14 Responded neutral for that comment 24 Responded agree to purchase Tata Nano instead of bike and 50 Responded believed that they are strongly agree to purchase Tata Nano instead of bike means the level of positivity is high then negativity 74 are agree and 62 are not agree to purchase Tata Nano instead of Second Car. (15) Do you want to purchase Tata Nano instead of second hand Car? 12345Strongly From 150 responded 28 responded Strongly Disagree purchase Nano instead of second carDisagreeDisagree From 150 responded 10 responded Disagree purchase Nano instead of second carNeutral From 150 responded 37 responded Neutral purchase Nano instead of second carAgree From 150 responded 30 responded Agree purchase Nano instead of second carStrongly From 150 responded 45 responded Strongly Disagree purchase Nano instead of second car Agree From 150 Responded 45 responded are strongly agree to purchase Tata Nano instead of second hand car 30 Responded agree for that 37 Responded neutral for that comment 10 Responded Disagree to purchase Tata Nano second hand car rather and 28 believed that they are strongly disagree to purchase Tata Nano instead of Second car means the level of positivity is high then negativity 75 are agree and 38 are not agree to purchase Tata Nano instead of Second Car. (16) Tata Nano is comfortable for Youngster or Job service people? 50 Projectsformba.blogspot.com
  • 51. Projectsformba.blogspot.com Comfortable for 12 36 36 Youngsters Job Service Both Can not Say 66Youngster From 150 responded 12 responded believed that Tata Nano is for YoungsterJob service people From 150 responded 36 responded believed that Tata Nano is for YoungsterBoth From 150 responded 66 responded believed that Tata Nano is for BothCan not say From 150 responded 36 responded believed that They can’t say anything From 150 Responded 12 Responded believed that Tata Nano is making for youngster 36Responded believed that Nano is not for Youngster it is for Job service people 66 Respondedbelieved that it is for both Youngster & Job service people 36 Responded believed that they are notknowing the main objective of this car. (17) Will Tata Nano Succeed or not? Perception towards success of Tata Nano 40 Yes No 8 Can not say 102 Yes From 150 responded 102 responded believed that Tata Nano will Sucess 51Projectsformba.blogspot.com
  • 52. Projectsformba.blogspot.com No From 150 responded 40 responded believed that Tata Nano will`t Sucess Can not say From 150 responded 8 responded believed that Tata Nano can`t say about it From 150 responded 102 responded believed that Tata Nano 1 lakh rupees car willsuccess & 40% responded are not sure about that but 8% responded believed that Tata Nano will notSuccess 96 Responded want to purchase Tata Nano & from that 96 Responded 79 Responded Believedthat Tata Nano will success & 11 Responded are not sure about this but 6 another Responded alsobelieved that Tata Nano will success Who did not want to purchase Tata Nano car. Date: / / Place:- 52 Projectsformba.blogspot.com
  • 53. Projectsformba.blogspot.comLIMITATION 1.) The geographical segmentation was our limitation as we have restricted our research to Gandhinagar only. 2.) Timing was limiting factor for the study. Time chosen was too short to prepare report and to meet respondents. 3.) Respondent bias was another limitation of the study. Respondent may not have given us accurate information which was a constraint of our research. 4.) Resource constraint was another limitation due to which we are unable to do in depth survey. 5.) Non Probability – Convenience Sampling Techniques which has serious limitations. Convenience samples are not representative of any definable population. Hence, it is not theoretically meaningful to generalize any population from a convenience sample. 53 Projectsformba.blogspot.com
  • 54. Projectsformba.blogspot.com CONCLUSIONFrom this study, we can find that from the total of 150 Respondents interviewed 111respondentswould like to purchase car and out of that 111 respondents 96 respondents want to purchase TataNano Car means 86.48% are interested in purchase Nano Car from the criteria of those Respondedwho want to purchase car.From this result, we can conclude that generally people whose income is more than Rs. 45,000 theydo not prefer to purchase Nano Car and the people whose income is below Rs.10,000 generally theyalready possess vehicle and they don’t want to replace it beacouse as a financial condition Car is notpreferred and neither they want to purchase Nano Car.Generally, Law of Demand says that as price of product or goods increases, demand of that particulargoods decreases and vice versa. But there are some exceptions which do not obey this law of demandwhich are as under: (I) luxurious goods (II). Giffen GoodsThe people whose income is higher they don’t want to purchase it because they think that Nanoproduced only for Middle class People and if they will purchase, it will decrease their prestige insociety but in some cases High profile people also purchase Tata Nano the perception is different forthat for example.Mika Singh Purchase Nano Car he has also another 1crore rupees Car but he thinkthat if I go on 1 crore car people look at my Car not to me but if I go on Nano people look at me notCar.50 responded are strongly agree to purchase Tata Nano instead of Bike & 45 Responded arestrongly agree to purchase Tata Nano instead of secondhand car 54Projectsformba.blogspot.com
  • 55. Projectsformba.blogspot.com BIBILOGRAPHYSOURCES FROM INTERNET:  www.tatamotor.com  www.survey.comBOOKS AND NEWS PAPER:  Naresh Malhotra. , Marketing Research-An Applied Orientation, FOURTH EDITION, Pearson publication, pp 30-367  Philip Kotler & Keller – Marketing Management, TWELTH ADDITION,  Economics Times , Business Standard , ICFAI General , Gujarat Samachar and Divya Bhaskar 55Projectsformba.blogspot.com
  • 56. Projectsformba.blogspot.com ANNEXUREQuestionnaireObjectives:- The objectives of the Research Projects is to familiarize the concepts, tools andtechniques for understanding research project in business and writing research Report.Here my research objective is “People Perception toward pre-launched car Tata Nano”Segmentation:- Market segmentation is consist of a group of customers who share similar needspreferences, perception and buying habits. Market segmentation is a process of dividing the total market for good or servicesinto several groups such that the members of each group are similar with resect to the factors thatinfluence demand. DEMOGRAPHYIC SEGMENTATION Demographic Segmentation divides the market into groups on the basis of variables such as age, family size, life cycle, gender, income, occupation, education, religion, nationality, race, generation, & social class (1)Name: (2) Gender: Male Female (3) Age: Below 20 20-25 25-30 30-35 Above 35 (4) Occupation: Student Govt Service Private Service NGO Any Other (5) Monthly (Family) Income: Below 10,000 56 Projectsformba.blogspot.com
  • 57. Projectsformba.blogspot.com 10,000 – 15,0000 15,000 – 20,000 20,0000 – 25,0000 Above 25,000 (6) Family Members: Below 3 3-5 Above 5GEOGRAPHIC SEGMENTATIONGeographic segmentation calls for dividing the market into different geographical units such asnations, states, regions, countries, cities or neighborhoods. In the Indian context geographicsegmentation assumes importance due to variations in consumer preference & purchase habits acrossdifferent regions and states of the country. (7) Are you from the urban area or rural area? Urban RuralCOMPETITOR (8)Do you have any vehicle? Yes No If yes, then which type vehicle do you have? Moped Scooter Motor-cycle Car (9)Do you want to purchase car? Yes No If yes then, which small car you prefer in your family? Maruti 57Projectsformba.blogspot.com
  • 58. Projectsformba.blogspot.com Tata Hyundai Skoda General motors Fiat Specify the rank order for the following criteria for the selection of car. Mileage Look Speed low Maintenance Pick-up Brand Name Low PricePRODUCT PROFILE (10) According to you Tata Nano car is: Family Car Taxi Car Personal car (11) Are you aware of the promotions of Tata Nano car? Yes 150 No 00If yes where Print Media Telecast Media Net Media Outdoors All above (12) Would you like to purchase Tata Nano? Yes No Please rank the following criteria for selection to purchase Nano car: Criteria Rank 58Projectsformba.blogspot.com
  • 59. Projectsformba.blogspot.com Mileage Look Speed Low Maintenance Pick-up Brand Name Low Price (13) Do you want to purchase Tata Nano with Petrol Diesel or Gas kit? Petrol Diesel Gas kit (14)Would you like to purchase Tata Nano in’ Loan’ or ‘Cash’? Loan Cash Not DecidedSUBSTITUDES PRODUCTS (15) Would you like to purchase Nano instead of Bike? 12345 (16) Do you want to purchase Tata Nano instead of second hand Car? 1 2 3 4 5CUSTOMER PROFILE (17) Tata Nano is comfortable for Youngster or Job service people? Youngster Job service people Both Can not sayPERCEPTION (18) Will Tata Nano Succeed or not? 59Projectsformba.blogspot.com
  • 60. Projectsformba.blogspot.com Yes No Can not sayDate: / /Place:- 60Projectsformba.blogspot.com
  • 61. Projectsformba.blogspot.com 61Projectsformba.blogspot.com