The document discusses Tata Nano, India's cheapest car. It provides details on its features such as its small size, low price enabled by use of plastics instead of metal, and lack of luxury features to keep costs minimal. The Nano created a new market segment and shattered myths that an inexpensive car can't be safe, spacious or efficient. It generated much controversy during its launch due to protests over its proposed manufacturing plant in West Bengal.

1. 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

2. Features
Length 3.1 metres
Width 1.5 metres
Height 1.6 meters
Engine All-aluminium, Rear Mounted, Rear Wheel Drive
Capacity 623 cc
Power 33 PS
Fuel Injection Multi Point Fuel Injection (MPFI)
Fuel Type Petrol, Diesel Version will be later
Body Type Sheet Metal
Seating Capacity 04 (Four)
20-22 Kmpl (City drive)
Mileage 26 Kmpl (Highways)
Top Speed 75 K.M
Emission Norms Euro-IV, Bharat Stage-III compliant
Safety Norms Frontal Crash Tested
Versions One Standard and Two Deluxe

3. What makes it so cheap !
• The Tata Nano uses plastics and adhesives rather
than welding.
• Introducing the car with an artificially low price
through govt-subsidies and tax-breaks.
• Use of inexpensive polymers or biodegradable
plastics instead of a full metal-body.
• It has no AC, no power steering, no power windows,
no power bells and whistles.

5. Strengths Weakness
• Fibre body
Low Price & stylish • Low suspension power
High fuel efficiency • Low engine capacity
Brand name • Light vehicle
First mover advantage • Not suitable fir hilly areas
35 Patents for innovation • Less Boot space
Green House Effect • Poor engine cooling & hence over
Variometric Gear System- Magnifies heating
Torque • No headlight levellers
• No modern facilities- ABS, PS, AC
Opportunities Threats
Bikers can be motivated New Competitor- Bajaj, Honda Siel, GM
Created a Niche Market REVA an electric car
Creates Employment Traffic Congestion
Auto Finance Government may increase taxes in
Diesel & Electric Variant metros
Developing Low Price Engine Oil Rising cost of raw material
Reducing parking space

6. Strategic Innovation:
• Radical Thinking
• Average of Nano team -28
• The company reinvented and minimized the
manufacturing process.
• Implemented continuous improvement.
• Predetermined retail price

7. • Collaboration with their suppliers very early in
the process
• Proximity of suppliers reducing the
transportation costs.
• Involved the state as a partner.
• Involved the state as partner

8. Focused Innovation:
• 21% more interior space and 8% smaller
exterior.
• Fuel economy : 20 kilometres per litre
• Low carbon dioxide emissions.
• Nano complies with Bharat Stage-III and Euro-
IV emission standards.

11. “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

12. Impact of Nano on automobile sector
• Created a blue ocean within its core
businesses.
• Reconstructed the industry boundaries of cars
to create a blue ocean.
• No need to to beat the competition and steal
a share of existing demand from others.

13. Shattered the myths !!
• Cheap means unsafe.
• Rear- engine cars are unsafe- Ferrari, Porsche,
VW and Lamborghini do it why can‘t Tata?
• The Nano will pollute the planet.
• The Nano will have no storage space-Sufficient
storage space, under the bonnet and over the
rear parcel tray, rear seats fold to dramatically
increase storage space.

14. TATA’s NANO A Promise
Why is
A Promise
Nano – Ratan Tata
?