History of TATA Motors
6th Largest commercial Vehicle Manufacturer
in the world.
2004 1st Indian manufacturing company listed
Manufacturing plants in India :
Jamshedpur, Pune, Lucknow
Assembly Operations across globe
Malaysia, Kenya, Bangladesh, Spain, Ukraine, Russi
a and Senegal.
2004 acquired Daewoo commercial Vehicle co.
o Korea’s 2nd largest Truck manufacturer
2005 acquired 21% stake in Hispano
o Spanish bus manufacturer
Indian Automobile Market
Benefited after Liberalization
2005-2006 One among the largest and fastest growing
Best and Top manufacturers of two and four wheelers
present in India
Rapidly expanding middle class increases scope of wide
A news report on Nano
Tata Nano by Tata Motors will have only a marginal
impact on the sale of Maruti-800, said Maruti Suzuki
chairman RC Bhargava
Two-wheeler makers Hero Honda, Bajaj Auto and TVS
Motors, too, underplayed the anticipated impact of
Mr Bhargava said, “Nano may impact the sale of our
entry-level model Maruti 800.
How do you evaluate Nano from the
perspective of Tata motors , perspective of
customers, and society at large?
Tata Nano is a kit Car.
Innovation both in case of value for money
It gives margin 4-10% to dealers. 20 – 25% for
Production of 350000 cars
Value for Money.
Comfort travelling experience
Low budget car
Considered the market as middle class families
and college students.
“Freedom for Four”
What are the economies of the nano for
the channel members .viz component
suppliers, manufacturers and dealers ?
90% of the products are out sourced
75% were single sourced
100 sub contractors
Production of nearly 350000 Nano
Increase in cost of material by 10%
Margin around 20-25% overall
Estimated profit of nearly 900 crore (approx)
Less outlets so scope of buying from particular
dealer is more , increasing the sales
Pre- booking Demand of Nano was more
during the starting stage .
Should Tata’s Sales and distribution strategy
be changed for Nano? Is the planned
distribution model of local assembly feasible?
TATA NANO is using Hub and Spoke Model for
TATA has many C&F Agents (Collects Nano
from hubs and distribute it across nation)
Sales & Distribution strategy
TATA NANO Distribution Model
Hub and Spoke Model
While the Nano seemed tailor-made for rural
drivers, Tata only has dealers in major cities.
Lack of dealers in the target market i.e semi
urban cities and rural areas.
Present Issues with sales and
Tata has nearly 200 dealers in major cities.
Reputation was damaged when five of the
first 30,000 cars had engine fires.
The final nail in the coffin is the price: Rising
material costs pushed the car’s price up to Rs.
1.5 lakh the same as a used Maruti 800
• Setting up exclusive showrooms for NANO
• Developing Specialized Logistics Facilities
by collaboration with Specialized logistics
• Should Move from full range dealership to
Product Based Dealership
• Financing better facilities like Tata Finance
• Dedicated Nano kiosks and
Mobile display units, the company
also can step up its drive through
the hinterlands to spruce sales.
• Association with Retail Outlets like
Vishal Mega Mart, Shoppers
Shop, Pantloon etc. (Booking
facilities, with promotion schemes
like ‘Win Silver Coin’)
Suppose Tata wishes to go international with
Nano then which countries will be suitable to
enter and when?
Internationally we would like to place Tata
Nano in country like Bangladesh
Assembly plant present in the country
Cost will be low and scope is high.
Not developed country scope of selling to
middle class is High
High demand for low budgetary cars.
One more country in the list will be Thailand
More of two wheelers than four wheelers.
Some places they heavily depend on Two
wheelers even for tourism.