case study on tata nano

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Case Study on Tata Nano
Aman Ahuja – A3906415445
AMITY UNIVERSITY UTTAR PRADESH NOIDA
AMITY SCHOOL OF BUSINESS
Case Study
On
TATA NANO
Name of the Student: _AMAN AHUJA________
Enrollment Number: __A3906415445_____
Class Roll Number: _____28_____________
Program: BBA (GEN)
Batch: 2015-18
Faculty Supervisor: Ms Geetika Jain______

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DECLARATION BY STUDENT
This is to certify that I, ____AMAN AHUJA__, a student of BBA of
2015-18 Batch, Amity School of Business, Amity University Uttar
Pradesh, Noida have worked under the guidance and supervision of
___Ms Geetika Jain___for NTCC Seminar.
This report has the requisite standard for the partial fulfillment of the
Graduate Degree in Business Administration. To the best of my
knowledge no part of this report has been reproduced from any other
report and the contents are based on original research.
I am aware that in case of non-compliance, Amity School of Business
is entitled to cancel the report.
Signature (Student)
Name of the student – __AMAN AHUJA_
Enrollment No. – ___A3906415445_____
Batch: 2015-18

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Acknowledgments
I highly appreciate my professorat Amity University, Noida, and Ms.
Geetika Jain, who patiently guided and motivated me to work through
this project. Her guidance to press forward to collect sizable data has
been very helpful.

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TABLE OF CONTENTS
S.No. Topic Page No.
i Declaration by Student 2
ii Acknowledgment 3
1. Introduction 5
2 Tata Group 5
3 Tata Nano 6
4 History of Tata Nano 7
5 Competitors of Tata Nano 8
6 Reasons why Tata Nano failed 10
7 SWOT 13
8 Tata Nano Sungur Controversy 15
9 Conclusion 16
10 Bibliography 17

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Introduction
Tata Group
Tata Group is a multinational group based in Mumbai, Maharashtra,
India. Founded in 1868 by Tata Gamsi and gained international
recognition after the purchase of many international companies. It is
the largest conglomerate in India and is owned by Tata Sons, a charity
registered with the Charity Commissioner of India.
Each Tata company or company operates independently under the
supervision and supervision of its board of directors and shareholders.
There are 30 listed companies in Tata with a combined market capital
of approximately US $ 130 billion as of March 2017. Tata's large
companies include Tata Steel, Tata Motors, Tata Consulting Services,
Tata Energy, Tata Chemicals, Tata International Beverages, Tata
Telefares, Titan, Tata Communications and Crown Group.

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Tata Nano
Tata Nano is a city car made by Tata motors. This car is made and
sold in India. Tata Nano is made a budget friendly car and it was
launched on a price tag of one lakh rupees (Rs. 1, 00,000). This car
was targeted to be bought instead of motor cycles by the middle class
people.

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History of Tata Nano
The idea of Tata Nano came to Mr. Ratan Tata. He was travelling on a
rainy day when he saw a man carrying his whole family (4 people) on
a bike. Mr. Ratan Tata saw that the man was facing a lot of problem
while driving his bike as it was raining and his bike was overloaded.
This event struck and idea to Mr. Ratan Tata about building a car that
was big enough for a small family and affordable by people who ride
bikes.
His first idea was to develop a safer bike, he made designs of bikes
with 2 rare wheels, then he made a design with a safety cage around
the bike but none looked feasible. He also thought of making a car
with safety bars instead of doors butno one would like to buy a half
car.
After many design fails, he came up with a car that only had the
essentials.
After a few days of planning and research, he found out that the
costing of making of this car comes around to Rs. One lakh. Mr.
Ratan Tata faced many statements of making the world’s cheapest car
but he went ahead with idea.
A group of engineers worked together and finally came out with a car
that met all the safety requirements of a car and named it Nano.

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Comparisonof Tata Nano with its competitors?
Tata Nano Maruti ALTO 800
1. The Nano's trunk is only
accessible from inside the car,
as the rear hatch does not
open, but it eventually
received a full hatchback in
2015.
1. Maruti 800 initially had
only an opening rear-
windscreen, but later got
a full hatchback.
2. One windscreen wiper instead
of the usual pair
2. Two windscreen wipers.
3. No power steering initially,
unnecessary due to its light
weight. Added in higher
variants in later models.
3. Power Steering only in
higher variants.
4. Three lug nuts on the wheels
instead of the usual four
4. Four lug nuts per wheel.
5. Only one wing mirror on base
models. Higher variants fitted
with passenger side ORVM
from 2012 onwards.
5. Both side ORVMs in
certain variants.
6. Radio or CD player is
optional
6. Radio or CD player is
optional
7. No airbags on any model
7. no airbag in any variant.
8. 624cc rear engine has 2
bigger cylinders (312cc each)
8. 800cc front engine has 3
smaller cylinders (266cc
each).

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9. No air conditioning in base
model
9. No air conditioning in
base model
10.Front passenger seat same as
the driver seat, and the
headrests are integrated.
10.Front passenger seat
same as the driver seat,
but headrests separate.
Later models switched to
integrated headrests.
11.Thinner 135/70-R12 space
saver spare tyre.
11.Full size spare tyre.
12.No external fuel filler cap.
Fuel inlet is accessed by
opening the front hood.
12.External fuel filler cap.
13.Front doorpower windows
only offered on highest
variant. PW switches placed
on central console rather than
on doorpads.
13.Front doorpower
windows only offered on
highest variant.

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Reasons why Tata Nano failed in the Indian market
1. Giving the car a cheapimage - the car was termed as the
“world’s cheapest car” this phrase attracted customers at first
but later made them reluctant to buy the car. Tata understood
that this phrase had set an image of fragile and unreliable to the
car. The company marketed the car in the wrong manner. The
car was supposed to be bought by middle and lower class
families to replace bikes but it was instead bought by auto
drivers to ride it as a taxi.
2. The looks ofthe car - the appearance of the car wasn’t very
appealing to the customers as it looked like an auto rickshaw
with 4 wheels and a metal cover instead of canvas. Indians are
more into looks of something that utility. So even the low
pricing of the car didn’t appeal to the customers as it lacked
good looks.
3. Negative publicity of the car - the car didn’t perform well as
the engine was a 2 cylinder 625 cc engine, it wasn’t even able
to run as good as a bike and faced lots of problems as
overloading caused the chassis to hit the road and caused poor
acceleration. Few of the cars also caught fire due to inefficient
cooling systems and air vents, this caused a lot of collateral
damage.

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4. Increasing competition of the secondhand market - the cars
sold in the second hand market like Renault Kwid, Hyundai
Eon, Datsun Go, Maruti Alto, etc. we’re harming the sales of
Tata Nano as these cars were available at the same price of Tata
Nano in’s the second hand market but offered more safety and
features and didn’t look as bad as the Tata Nano, these cars had
a proper4 cylinder engine and good acceleration and pickup.
5. Engineering and designing gone wrong - the car lacked basic
features that are required in a car like child locks, no central
locking, no space for child seats, no power steering, no ABS,
etc. the lack of these key features that were available in the
competitors of Tata Nano caused a bad responseto the car.
6. Expectationvs. reality - Tata had given the vision of a car that
would be affordable and could fit a family of 4. But in reality
the car was only initially available for less and it also had lots
of difficulty in fitting an Indian family of 4 with ease. The roads
of India are very rough and are full of pits and bumps; Tata
Nano wasn’t made for Indian roads as it had small wheels and
bad suspension. The car also only had a top speed of 105 kmph,
which means it cannot be driven above 70 kmph, this made it
unsuitable to be driven on highways also.

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7. Wrong product placement - Tata Nano positioned it car to be
used largely in rural areas and gave it the name ,”everyone’s
car” as it could be easily affordable by anyone, this harmed the
profile of the car as no one wanted a car that was said to be
cheap, this made the customers more reluctant in buying the
car.

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SWOT analysis of Tata Nano
Strengths
1. Tata Nano is available at a very affordable price
2. Easy to drive in traffic conditions
3. Innovative engineering of Tata Nano provides better facilities
compared to same segment cars
4. Low maintenance and handling costof Tata Nano
5. Good fuel efficiency goes well with Indian audiences
6. When it was introduced it created a huge buzz in the global
automobile industry being a ‘commonmans’ car
7. Excellent advertising of the Tata Nano car across TVCs, print
media, online ads etc
Weaknesses
1. Perceived as a cheap productwhich repels the aspirational
customers
2. Setting up of productionplant in WB caused a lot of tension
3. Limiter international presence of Tata Nano

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Opportunities
1. Tata Nano can capitalize on the fact that it is the most affordable
car and acquire new customers
2. Increasing per capita income and purchasing capability of potential
customer base
3. Promoting CNG model at the earliest and attract the public
passenger car segment
4. Increase international market presence especially Europe too
boost Tata Nano's business
5. Augmenting the distribution and service network in various
countries
Threats
1. Increasing fuel costs
2. Competition from other big automobile giants can affect Tata
Nano's business
3. Competitive products offering same level features at a lesser price
4. Productinnovations and frugal engineering by competitors
5. Customer perception of a Tata Nano as a cheap car can lead to loss
of sales

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Tata Nano Singur Controversy
This was the controversy that was generated by land acquisition of the
Nano factory of Tata Nano at Singur in Hooghly district, West
Bengal
The government of West Bengal caused the controversy by using the
1894 land acquisition act. In this, the government has the right to take
over the private property for public use and development.
They took over 997 acres of land to let Tata build its factory. This
project was opposedbythe opposition parties and activists in West
Bengal.
Many farmers whose land was seized for the factory were displaced;
the opposition leader Mamata Banerjee help the farmers get their land
back.
The plant finally shut down on 3rd October2008 and was shifted to
Sanand, Gujrat. The then CM of Gujrat, Shri. Narendra Modi helped
Tata to constructtheir plant in Gujrat. The shifting of the whole
factory across India caused a huge delay in the release date of the car.
It also wasn’t possible to now sell the car at Rs. One lakh as the
costing increased.
In spite of that, Mr. Ratan Tata promised to sell the car at Rs. One
lakh for the customers who had pre-booked and then later on increase
the price.

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Conclusion
1. Tata Nano is the world’s cheapest car.
2. It was made affordable for the lower middle class people.
3. The car was turning heads in the beginning but later it was seen
as a cheap car and people didn’t prefer this car.
4. It had to face a lot of competition and it offered much less than
its competitors for the same price.
5. Tata Motors had done bad publicity and improper placement of
the car in the market that have the car a bad name.
6. The car couldn’t perform well on the road as it had a small
engine, poorsuspension, small wheels, no safety and basic
features and a low top speed.
7. Tata Nano had to shift its factory from West Bengal to Gujrat
due to political pressures;this caused a delay in the car
production and increased the costing of the car.
8. Though the car was launched to be affordable, it now available
starting at Rs. 2.5 lakh, other car manufactures like Renault,
Hyundai, Maruti have offered cars at the same price range with
more features and safety.

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Bibliography
1. https://en.wikipedia.org/wiki/Tata_Nano
2. http://www.mbaskool.com/brandguide/automobiles/5019-tata-
nano.html
3. http://nano.tatamotors.com/technical-specifications.html
4. https://www.cardekho.com/tata/tata-nano-specifications.htm
5. http://nano.tatamotors.com/genx-nano-technical-
specifications.html

case study on tata nano

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