3. Todevelop TATAinto a world class
Indian car brand for innovative
and superior value vehicles
VISION
4. • Tobe the most admired multi-national Indian
company producing vehicles that people love to buy
• Tocreate an organization that people enjoy
working for doing business with and investing in
Mission
6. Idea Generation
Of Nano
“I saw families ridding around on scooters with
kids standing up and mother carrying a baby
and sitting Pillion and decided to do something
about . It started as an quest for an
affordable transportation solutions.”
. Source – Business Standard
7. History
Tata Motors Limited, formerly known as TELCO (TATA
Engineering and Locomotive Company), is a multinational
corporation headquartered in Mumbai, India. It is Asia largest
passenger automobile and commercial vehicle manufacturing
company. Part of the Tata Group, and one of the world's largest
manufacturers of commercial vehicles.
TML ranked it as the world's 17th largest automaker, based
on figures for 2017.(Automotive – Technology.com)
Tata Motors has its manufacturing base in Jamshedpur,
Pantnagar, Lucknow, Pune.
8. It has more than 25000 employees, 4500 engineers and
scientists and with R&D.
Tata launched “TATA INDICA” India’s largest selling car,
which is India’s first fully indigenous car launched in 1998
In 2005, they created a new segment mini trucks with the
launch of “TATA ACE”.
Tata summo 1994 and Tata safari in 1998.
9. Business Models for TATA NANO
Dream of Sri RATAN TATA, a car cheap enough for motor cycle buyers.
For this project, TATA adopted “COLLABARATIVE APPROACH”, which usually
believes in vertically integrated approach and company believes it could do
everything better than others.
BUSINESS PROCESS OUTSOURCING
Outsourcing was into New product development, SCM, Design and styling of
its products also.
Refined the manufacturing process by breaking down every component of the
car into its smallest pieces & eliminating everything that was unnecessary.
10. Introduction
The Tata Nano was introduced at the 9th auto expo by Tata
Motors in New Delhi, India on Jan. 10, 2008.
Tata Nano is made for medium class family it is Small,
affordable and great Stylish Car.
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
11. Location of Manufacturing Plant
• TML intending to set manufacturing plant
• Considered locating plants in various states
• Accurate understanding of :– Political
interests & Compulsion of State Government
12. Contd..
• Exploited such weakness to its advantage
• Incentive package in Uttarakhand/Himachal Pradesh
a)100% exemption from excise duty for 10 years b)100%
exemption from Corporate Income tax
• WB out of desperation walked into the trap
13. Singur - Tata
• Govt. WB keen for rapid industrialisation
• Approached Tata Motors
• Tata Motors showed interest in locating the plant in WB
• Chose Singur a small town of WB
• Govt. WB provided TML a loan of 200 crores at 1%
interest
14. Tata enjoying the most of incentives!!!
• A comprehensive package of incentives
• Electricity Clause –
Electricity at Rs.3kwh
• Loan Repayment –
Loan with interest repayable in annual installments
• Lease rental
17. “Great agitation
and
great aggression”
“You cannot run a plant where the wall is being broken; you cannot
run a plant where bombs are being thrown from all the sides; you
cannot run a plant where the people have been intimidated or
threatened. This is only during the construction, what happens
when we actually start running the plant!”
-Ratan Tata
Chairman,Tata Motors Ltd
FRONT LINE ,Volume 25 - Issue 22 :: Oct. 25-Nov. 07, 2008. INDIA'S NATIONAL MAGAZINE
18.
19. Destructive Politics...
“I once mentioned that if somebody puts a gun to my head, you
either pull the trigger or take the gun away because I will not
move my head. I think Ms.Mamta Banerjee has pulled the trigger,”
- Ratan Tata
Chairman,Tata Motors Ltd.
FRONT LINE ,Volume 25 - Issue 22 :: Oct. 25-Nov. 07, 2008. INDIA'S NATIONAL MAGAZINE
20. Effects on West Bengal
• Brand Image
• Damages to the Public property
• Losses beared
•Unemployment
21. Fight for Nano Begins – Again
• West Bengal’s loss another State’s
gain
• Karnataka 1st to offer
• Gujarat offered 3 strategic locations
- Mundra in Kutch district
- Charodi in Sanand
- Surat
• Orissa offered land at Gopalpur
• Maharashtra, Andhra Pradesh, Uttarakhand also made an offer
22. Why Gujrat
Nano Project will bring much-needed high technology into the state and
strengthen the local auto component industry in the SME sector.
There are certain other reasons due to which Tata Motors Limited selected
Gujarat as their home for Nano project: -
Gujarat is one of the few states to have substantially higher private sector
investment than public sector investment.
It has relatively peaceful Industrial relations climate.
Relatively untouched by projects over acquisition of farmland for industry.
23. Why Gujrat
It has thriving entrepreneurial culture and SME clusters.
Source: Projects Today/ 'Gujarat Shining' Business Today, November 02, 2008. pg. 44
The number of industrial projects in Gujarat were 789 in September 06, which risen
up to 923 & 1384 consecutively in September 07 and in September 08.
Source: Projects Today/ 'Gujarat Shining' Business Today, November 02, 2008. pg. 44
The status of financial investment in Gujarat was 2,12593 crore rupees in Sep. 06
became 2,11,399 in September 07 and again raise up to 2,88,018 crore rupees in
September 08.
25. • Reliable Infrastructure
• Locations - Government owned land
• Charodi and Chharal villages in Sanand the ultimate choice
“You are stupid if you are not in Gujarat”
- Ratan Tata
Vibrant Gujrat
26. Benefits to
Loan of Rs 9,570 crores
THE DEAL
Rs 2,900 cr for Nano plant
Rs 6,670 cr for Infrastructure development
Repayment of Rs 9,570 cr loan @ 0.1% over 20 years
27. • 100% exemption on electricity duty
• Concessional power tariff
• 1,100 acre land comes cheap
• No stamp duty, Registration and transfer charges
• Payment for land in 8 equal annual instalments
THE SWEETNERS
28. • Benefits to Component manufacturers and Vendors
• New Investment opportunities and positive sentiment in Gujarat
• Benefit to Real estate market
• Additional jobs and training opportunities
Benefits to Gujarat
32. Specification
Looks: The snub-nosed car keeps in the tradition of the Fiat 500, Nissan
Micra and the Smart.
Dimensions: 3.1 metres (10.23 feet) long, 1.5 metres wide and 1.6 metres
high. Can seat four to five people
Engine: A two cylinder 623 cc, 35 horsepower rear mounted, all
aluminium, multi-point fuel injection petrol engine can power the car to
top speeds of 105 kilometres per hour (65 miles per hour).
Fuel Efficiency: 20 kilometres per litre, or 50 miles per gallon is claimed.
Pollution: Exceeds Indian regulatory requirements and can meet strict
Euro IV emission standards. In terms of overall pollutants, Tata says the
car is better than two-wheelers manufactured in India currently
•
•
•
•
•
33. Specification
Safety: Car exceeds current regulatory requirements with a strong
passenger compartment, crumple zones, intrusion resistant doors, seat
belts, strong seats and anchorage.
Nearest Domestic Car Rival: Maruti 800, part of Japanese-owned
•
•
Suzuki Maruti stable whose base model sells for about 4,800 dollars
nearly double the price of the Nano
Nearest International Rival: China's Chery QQ which retails for
3,600 dollars.
Market: India's car market is a huge draw because car penetration is
just seven per 1,000 people, compared to 550 per 1,000 in such
countries as Germany or 476 in France, according to the Society of
Indian Automobiles.
--
•
•
35. Engine Options – Petrol, Diesel.
Petrol Engine
2 cylinder petrol all aluminium Engine
624 cc
Bosch multi-point fuel injection (mpfi)
Diesel Engine
Jointly developed with Diesel Engine
specialist FEV
684 cc
Smallest Common Rail Turbocharged
Diesel engine
Variants
Models Ex-showroom
prices
Nano Standard Rs 1,23,360
Nano Deluxe-Cx Rs 1,51,360
Nano luxury-Lx Rs 1,72,360
36. COST CUTTING FEATURES
The trunk is only accessible from inside the car as the rear hatch
doesn’t open
One wide wiper instead of usual pair.
No power steering, radio or music can be fitted as accessories. No
air bags In any model
624cc two engine cylinder. No air conditioning.
To ease the assembly, body panels are glued instead of welded.
37.
38. Collaboration as a source of innovation….
TATA MOTORS considered COLLABORATION as the source of
innovation from different company’s idea to reduce cost.
TATA divided the components into two types – proprietary design
and Tata motors design.
For proprietary design components Tata went with established
suppliers such as BOSCHGROUP.
BOSCH GROUP, which supplies the engine management systems.
39. BOSCH GROUP
Bosch group decided to take the challenge to be a part in cheapest car
though they (Bosch) developed systems only for high end vehicles.
Bosch again split the development between its design centers Bangalore and
Germany
Using local design capabilities was a crucial decision and employment took
place at higher wage levels.
Bosch developed a software consists of electronic control unit, fuel injectors,
sensors, ignition oil, tank vent level and throttle body assembly.
Cost effective “drum brakes” were used.
40. SUPPLIERS
There were more than 100 suppliers.
The brief to suppliers was: “Make things smaller and lighter, do away with
superficial parts, and change the material wherever possible”
A few did their own way and few developed with the Tata motors.
Arvind Kapoor, CEO of Rico, supplier of blocks to the engine, decided to use
aluminum for engine instead of traditional cast iron as it was smaller, lighter and
cost was less.
Price negotiations from Tata motors side apparently started from 50 % of what
suppliers offered.
41. • Though the one lakh price tag is not fixed by TATA group, it was the
word of mouth of people which fixed that range. This expectation of
people creates a big challenge for the company. To accept this
challenge the following strategies are followed:-
•
•
•
Target costing method
Penetration pricing
Low pricing policy with minimum profit margin.
42. Promotion
* Enough use of one of the most important element of
promotion mix , publicity reduces the necessity of other
promotional devices for nano. Nano got publicity in
following ways:-
the
o
o
o
* Publicity as “One lakh car” by mouth to mouth.
* Auto expo 2008,New Delhi & Geneva
* Publicity through print & electronic media.
* Internet will be a major media for advertising.
43. * For other type of promotional activities ,cost factor that is
1 lakh price tag is to be keep in mind, TATA is going to
launch its nano mobile for indicom user, nano watches ,
nano T-shirts available in Westside stores .
*Advertising:- TV & other mass media will be less
effective, thus too much money will not be invested in this
regard . Mainly word of mouth advertising will get more
emphasis
44. Online buzz:-Nano has gone beyond the traditional methods of advertising
and promotion online .
Social Media communities:-
Official Orkut community Members - 6,906.
Official Facebook Group Fans - 4,210
Highest View Count on You Tube- 303,006 (it was just under 3,00,000 when
I began writing this post)
No. of Blog Posts - 61,664
TATA have a blog on the official website where they have been discussing
quite interesting topics and generally maintaining an active community
45. Distribution
TATA, it’s business has been extended to the overseas i.e. to the
Europe, Africa, U.S & Australia.
Hence it has n-number of showrooms in India & outside of India.
The exclusive showrooms are the best distribution channels for
TATA itself.
46. Swot Analysis
Price, mileage, style, brand name, all weather vehicle,STRENGTH
first innovation.
Fiber body, low suspension power,
low engine capacity, light vehicle,
not suitable for hilly areas, delay due
violation.
WEAKNESS
to singur
Bikers can be motivated, auto rickshaw
& second hand market can be motivated.
OPPORTUNITY
Other competitors (Honda, Maruti , Tara tiny) not
friendly, Govt. may come with new rule.
eco-THREAT
47. •
•
•
•
•
Family of four riding a scooter on wet roads
Two Wheeler Market
Used Cars Market
second hand car user
middle and lower income group people.
48. Post Purchase Service
-As Tata is going to provide this car with rupees one lakh
only, so it may not give the same service like it’s other
vehicles.
-But it’s post purchase services will be better than a costlier
bike.
-Customers may get minimum three services from Tata in
any of it’s servicing center, all over the country.
•
•
•
•
49. Bibliography/Webliography
• "Specifications of Tata's Nano". indiatimes.com. 2008-01-10.
• "Nano Mania". Autocar India. February 2008.
• "Specifications of Tata's Nano". cardesignnew.
• "Review of Tata Nano" TechWebToday.
• Falling Rain Genomics, Inc - Singur
• "Census of India 2001: Data from the 2001 Census, including cities, villages and towns
(Provisional)". Census Commission of India. Archived from the original on 2004-06-16.
http://web.archive.org.
• The Hindu Business Line, 26 November2006
• The Hindu Business Line, 13 December2006
