This document provides information about Tata Motors, the Indian automaker, including its history, operations, and products. It discusses Tata's acquisition of other vehicle manufacturers, its presence in various global markets, and manufacturing locations in India. The document also examines Tata's launch of the Nano automobile in 2008 as an affordable option for the Indian market and considers how it may impact other vehicles in Tata's lineup or compete with alternatives like auto rickshaws. Various perspectives on the Nano are explored from the viewpoints of Tata, customers, and society.

2. History of TATA Motors
96 Companies
650,000 Employees
6 Continents
6th Largest commercial Vehicle Manufacturer
in the world.

3. 2004 1st Indian manufacturing company listed
in NYSE
Manufacturing plants in India :
Jamshedpur, Pune, Lucknow
Assembly Operations across globe
Malaysia, Kenya, Bangladesh, Spain, Ukraine, Russi
a and Senegal.

4. 2004 acquired Daewoo commercial Vehicle co.
Ltd.
o Korea’s 2nd largest Truck manufacturer
2005 acquired 21% stake in Hispano
carroccera
o Spanish bus manufacturer

6. Indian Automobile Market
 Benefited after Liberalization
 2005-2006 One among the largest and fastest growing
car markets.
 Best and Top manufacturers of two and four wheelers
present in India
 Rapidly expanding middle class increases scope of wide
market

7. Unveiled Nano in 2008

8. Questions
How would you segment the Indian
automobile market? Where is Nano likely
to have most appeals? Accordingly how
should it be positioned?

10. Second hand vehicle users
Auto Rickshaw Market
Middle and lower income people
Positioned itself in the mind of people as “The
people’s Car”

11. Will Nano cannibalize Indica and Tata’s
other popular model?

12. Tata Indica – India’s Car
Launched in 1998
Price Approx Rs 3,00000 starting

13. Tata Indigo
Economy car
Launched in 2002
Price approx Rs 4,00,000

14. Tata Nano
“People’s car”
Launched in 2008
Price Approx Rs 1,30000

15. 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
Nano.
 Mr Bhargava said, “Nano may impact the sale of our
entry-level model Maruti 800.

16. How do you evaluate Nano from the
perspective of Tata motors , perspective of
customers, and society at large?

17. Company Perspective
Tata Nano is a kit Car.
Innovation both in case of value for money
and comfortably
It gives margin 4-10% to dealers. 20 – 25% for
company.
Production of 350000 cars

18. Customer Perspective
Value for Money.
Comfort travelling experience
Low budget car

19. Society Perspective
Considered the market as middle class families
and college students.
“Freedom for Four”

20. What are the economies of the nano for
the channel members .viz component
suppliers, manufacturers and dealers ?

21. Component Supplier
90% of the products are out sourced
75% were single sourced
100 sub contractors

22. Manufacturer
Production of nearly 350000 Nano
Increase in cost of material by 10%
Margin around 20-25% overall
Estimated profit of nearly 900 crore (approx)

23. Dealer
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 .

24.  Should Tata’s Sales and distribution strategy
be changed for Nano? Is the planned
distribution model of local assembly feasible?

25. TATA NANO is using Hub and Spoke Model for
distribution
TATA has many C&F Agents (Collects Nano
from hubs and distribute it across nation)
Sales & Distribution strategy

26. TATA NANO Distribution Model
Hub and Spoke Model

27. 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
Distribution Strategy

28. 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

29. Target segment

30. • Setting up exclusive showrooms for NANO
• Developing Specialized Logistics Facilities
by collaboration with Specialized logistics
providers
• Should Move from full range dealership to
Product Based Dealership
• Financing better facilities like Tata Finance
Reinvent
the
distribution
strategy
Recommendations

31. • 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’)
Reinvent
the
distribution
strategy
Recommendations

32. Suppose Tata wishes to go international with
Nano then which countries will be suitable to
enter and when?

33. 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.

34. 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.

35. Adarsh surana, Rishab chandan, Magesh veeramani, Princy koratty Sabari nathan