1) Tata Motors developed the Tata Nano car to provide affordable transportation for low-income families in India who could not afford cars but traveled by scooter. 2) The concept was developed through customer interviews and market testing potential designs. A small four-wheeled car was selected that met safety and regulatory requirements. 3) A business analysis showed Tata had advantages as the only company providing the lowest-priced car, with local sourcing of parts reducing supplier bargaining power and few substitutes available.

1. A Presentation on
Prepared by:-
Mehul Rasadiya
K.K. Parekh Institute of Management Studies
(Amreli)
1
NPD process of TATA Nano

2. “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.”
.
Idea Generation Of Nano

4.  A Dream Project
 Family Commuting on Scooters
 Can’t Afford Cars
A Vision to Build the world’s Cheapest Car

5. IDEA SCREENING
 A scooter with two extra wheels at the back for better stability?
 An Auto-rickshaw with four wheels?
 A three wheeled car like a closed auto- rickshaw??
 A four wheeled car made of Engineering Plastics?
 A Four wheeled rural car?
 Rolled up Plastic curtains in place of windows?
 Openings like Auto rickshaws from the side
 A four wheeled open car with safety side bars?

6. ,“ Ah! That’s just a scooter with four
wheels or an auto-rickshaw with four
wheels & not really a Car.”
 But Market needed a people’s car……..
Car or Auto Rickshaw

7. CONCEPT TESTING &
DEVELOPMENT
 Mr. Girish wagh, Leader of TATA Engineering Team
 Did something nobody at TATA motors ever did
 Talked to its customer ! Why. why. why.???
 They Insisted on a cheap, Dependable truck.
 Final Ans. : Better Marriage Prospects in the Village

10. WHAT TYPE OF PRODUCT
SHOULD BE DEVELOPED???
 Should be built on different platform
 Must meet all safety and regulatory requirements.
 Should be exportable to other countries

11. TATA produce a Cheapest car Because..
 Mother plant
 Manufacture the complete car.
 Having best engine technology (FIAT)
Threat of new
entrants
Bargaining
power of
suppliers
Rivalry
among
competing firms
Bargaining
power of
buyers
Threat of
substitute
products
Rivalry with
Existing Competitors
BUSINESS ANALYSIS

12. No one other competitors are there
because TATA is only one company
which are providing cheapest car , so
low bargaining power of buyers
Threat of new
entrants
Bargaining
power of
suppliers
Rivalry
among
competing firms
Bargaining
power of
buyers
Threat of
substitute
products
Bargaining Power
of Buyers

13. Low Bargaining power of
Suppliers because…..
 97% parts locally sourced.
 Only 20 companies to supply
70% of components.
Threat of new
entrants
Bargaining
power of
suppliers
Rivalry
among
competing firms
Bargaining
power of
buyers
Threat of
substitute
products
Bargaining Power
of Suppliers

14.  Less possibility of threat of
potential EntrantsThreat of new
entrants
Bargaining
power of
suppliers
Rivalry
among
competing firms
Bargaining
power of
buyers
Threat of
substitute
products
The Threat of
Potential Entrants

15.  Bikes
 RickshawsThreat of new
entrants
Bargaining
power of
suppliers
Rivalry
among
competing firms
Bargaining
power of
buyers
Threat of
substitute
products
Product
Substitutes

16. Now the question was, “how much to produce”
 It was estimated that the demand for the people’s
car shall be at least twice the demand for Maruti 800,
the lowest end car. Initial projections were at about
500 K cars per year.

18. PRODUCT DEVELOPMENT
 Engine Capacity Bosch 624 c.c. twin cylinder
 Low capacity, Lighter, sufficient with better Power Rear
Engine to reduce the transmission length using a
balancer shaft.
 4 Speed Manual Gear Box
 All Aluminum Engine
 Higher thermal conductivity than cast iron, Lighter and
so better mileage
 Engine Management System by Bosch
 Superb control over emission and smooth acceleration.

19.  Better ride than Maruti 800.
 Safety requirements are adequately met.
 Single Wiper in place of two.
 Cost effective yet functionality is met
 Tube less Tires
 Less length but more inner cabin space due to height.
Comfortable leg room.

20. TEST MARKETING
 Test Drives and Feedbacks

21. COMMERCIALIZATION