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1.1 Industry Profile: Tata Nano
1.1 Industry Profile: Tata Nano
1.1 Industry Profile: Tata Nano
INTRODUCTION
The automobile industry in India is the ninth largest in the world with an annual
production of over 2.3 million units in 2008. In 2009, India emerged as Asia's
fourth largest exporter of automobiles, behind Japan, South Korea and Thailand.
Motors, Maruti Suzuki and Mahindra and Mahindra, expanded their domestic and
independence, in 1947, the Government of India and the private sector launched
automobile industry. However, the growth was relatively slow in the 1950s and
1960s due to nationalisation and the license raj which hampered the Indian private
sector. After 1970, the automotive industry started to grow, but the growth was
M.S. Ramaiah College of Arts, Science & Commerce 1
Tata Nano
mainly driven by tractors, commercial vehicles and scooters. Cars were still a
major luxury. Japanese manufacturers entered the Indian market ultimately leading
building motorcycles and light commercial-vehicles. It was at this time that the
Indian government chose Suzuki for its joint-venture to manufacture small cars.
Following the economic liberalisation in 1991 and the gradual weakening of the
The Indian automotive industry is the 2nd fastest growing in the world. About 8
million vehicles are produced annually in this country toady. During 2005-2006,
India has emerged as the 3 rd largest market in the Asia Pacific Region. With
various car manufacturing companies setting up their units in different parts of the
country, the production of the cars will increase at a very fast rate. The car reports
indicate that India will soon become one of the top 10 car manufacturing countries
leaving behind the U.K. Car statistics also show that by the end of the fiscal year
2006-2007, the car production capacity in India will exceed the mark of 2 million.
million.
The Indian automotive industry is the 2nd fastest growing in the world. About 8
million vehicles are produced annually in this country toady. During 2005-2006,
India has emerged as the 3rd largest market in the Asia Pacific Region.
With various car manufacturing companies setting up their units in different parts
of the country, the production of the cars will increase at a very fast rate. The car
statistics indicate that India will soon become one of the top 10 car manufacturing
countries , leaving behind the UK. Car statistics also show that by the end of the
fiscal year 2008-2009, the car production capacity in India will exceed the mark of
2 million. Thus, the production of cars will increase by 70% from the present
The domestic sale of passenger cars have increased significantly over the years. A
graphical representation of the domestic sale of cars will give you an insight about
In the recent years, India has emerged as one of the major bases for manufacturing
small passenger cars. At In the recent years, India has emerged as one of the major
bases for manufacturing small passenger cars. At present the Indian automotive
the car statistics almost 70 % of the cars sold in this country come under the
M.S. Ramaiah College of Arts, Science & Commerce 3
Tata Nano
segment of small cars. A number of car manufacturers like: Maruti Udyog, Tata
Motors, Hyundai, Honda, Ford, Hindustan Motors, Fiat, General Motors etc offer
various new model of cars now and then. It is expected that the various automobile
Some important statistics about cars also include car insurance statistics, auto
insurance statistics, auto accident statistics and car crash statistics. All these data
and statistics help in framing the state policies and issuing the guidelines to
different auto manufacturers and dealers. As per the car reports , export of
passenger cars from India have also grown considerably over the last decade. A
graphical representation of car export trend will help you to make an in-depth
analysis of the present status of the Indian automotive industry: With new
automotive industry the production as well as the domestic sale and exports will
increase substantially.
Driving the most luxurious car has been made possible by the stiff competition in
the automobile industry in India, with overseas players gathering the same
momentum as the domestic participants. Every other day, we have been hearing
about some new launches, some low cost cars – all customized in a manner such
that the common man is not left behind. In 2009, the automobile industry is
industry in India has been hit badly by the ongoing global financial crisis.
The automobile industry in India happens to be the ninth largest in the world.
Following Japan, South Korea and Thailand, in 2009, India emerged as the fourth
spread their operations globally as well, asking for more investments in the Indian
In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan
Motors plans to export 250,000 vehicles manufactured in its India plant by 2011.
Similar plans are for General Motors.
Table 1.1
Graph 1.1 :
Graph showing Turnover of Automobile Manufacturers(In USD Million)
M.S. Ramaiah College of Arts, Science & Commerce 5
Tata Nano
34,285
35,000
30,000 27,011
25,000
20,896
20,000
16,544
14,880
15,000
10,000
5,000
0
2003-04 2004-05 2005-06 2006-07 2007-08
The figures show that the automobile sector in India has been growing robustly.
The market shares of the different types of vehicles will clearly depict the demand
pattern in this sector.
Graph 1.2
80.00% 76.49%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00% 15.96%
10.00%
3.95% 3.60%
0.00%
Passenger Vehicles Commercial Vehicles Three Wheelers Tw o Wheelers
Market
Traditionally market was a place where buyers and sellers gathered to exchange
their goods, such as village square. Economists use this term to refer to a
product class.
Business people often use the term market colloquially to cover various
grouping of customers. They talk about market need, demographic market and
want who might be willing and able to engage in the exchange to satisfy needs
or want”.
Thus the size of the market depends on the number of people who exhibit their
needs or wants, have resources that interests others, end are willing and able to
Marketing
Marketing is indeed an ancient art, it has been practiced in tone form or the
other since the days of Adam and Eve. Its emergence as a marketing discipline,
marketing thinkers and practitioners in the world over, regard marketing as the
Marketing is the economic process by which goods and services are exchanged
between the producer and the consumer and their values determined in terms of
money prices.
obtain what they need and want through creating offering and exchanging
Fig 1.1
Needs
Markets
As the twenty first century is upon us, marketing is becoming more attractive at
the company, state, national and international levels. In the early days, there
was no difference between ‘selling’ and ‘marketing’. But today the difference
satisfy the needs and wants of a group of customers. This ‘segment’ concept
With the development of new markets and new avenues of selling, a wide
variety of consumer and producer goods has been designed and developed, and
The developing countries are giving much importance for marketing to develop
their internal and external markets. Even the socialist countries have started
Consumer
The consumer is the king in the market. Consumer tries to satisfy the wants
from different market sources. His taste, fashion and preference also changes
from time to time. Hence, the marketer should learn the art of reading the
As the country is vast geographically, the consumers of India are scattered over
religion, language, literacy level, customs and calendars, life styles and
economic status, the consumers of India present a complex and bizarre group.
going in for national marketing. There are certain data in the Indian consumer
The Indian marketing environment, has more than 920 million consumers as of
March 1995 survey and today the country has more than a billion consumers.
Life expectancy today is 62 years, ten years ago it was only 54 years and in
1947 it was just about 30 years, improved health standards, lower infant
mortality, fall in birth rate and the growth in medical facilities have contributed
Consumer Perception
stimuli into a meaning and coherent picture of the world. Perception has
called the absolute threshold. The minimal difference that can be perceived
difference. Most stimuli are perceived above the level of consumer conscious
of their expectations and motives with the stimulus itself. The principle of
usually perceive things they need or want, and block the perception of
irrelevant cues, first impression and the tendency to jump the conclusion.
Just as individual have a perceived self image as a certain kind of person, so,
too, do products and brands have images (i.e. symbolic meaning) for the
probably more important to its ultimate success than are its actual physical
characteristics.
Products and services that are perceived favorably have a much better chance
images.
informational cues, some are intrinsic to the product (e.g. color, size, flavor and
aroma) while other are extrinsic (e.g. price, store, image, brand image, service
stores influence the perceived quality of products they carry, as well as the
themselves. Manufacturer who enjoy favors generally find their new products
are accepted more readily then those of manufacturer with less favorable or
‘neutral’ images.
the feedback forms a vital part. How the customer perceives the product is very
necessary. The company should give utmost importance to the opinions of the
manufactured.
Once the company releases a new product into the market, it is necessary to
know the response from the market as to how well the product is being
received. Customers Perception gives out the opinions about the product. If
there are any drawbacks, then it gives a chance to the company to rectify them
in touch with the customers perception and preferences from the company.
Satisfaction in the literal sense means something, which brings about contentment
But in terms of marketing it is used as relative term to refer to the match between
the expectations and the actual satisfaction derived by the consumers. Before
After the purchase if the product lives up to the expectations of the consumer then
only he is going to be satisfied. But if the product does not meet the expectations
Consumer Satisfaction
and even a feeling to acquire or consume the commodity again”. In other words
the buyer’s product expectations and the product perceived performance. If the
whether the consumer buys the product again and talks favorably or unfavorably
Customer Satisfaction
Fig. 1.2
Perceived
Quality Customer
Complaint
s
Customer
Perceived Satisfactio
Quality n
Custome
Customer r Loyalty
Expectation
s
With the recent influx of different brands in today’s four wheeler auto
maintaining loyalty, at present cars as such have become necessity but not a
nicety. With this out look of today’s market it is even a layman’s perceptive
has been conducted to find out customer satisfaction towards newly launched Tata
Nano car in Bangalore city. However, due to time constraint an in-depth study
respondents.
car.
various customers were met to find out their perception towards the various
elements that satisfies the customer specially towards Tata Nano car.
attitudes & satisfaction of customers for users and non users of Tata Nano car i.e.
drawing conclusions about a large group on the basis of small sample has become
collection of units (population) in order to make some inferences about the total
The sample size was decided to be 50, large enough to represent the population.
The data was collected through a sample survey by personal interviews using
locations in Bangalore.
The questionnaire used for this study in highly structural keeping in mind to get
customers co-operation for the study & appeal to extend their free & frank
opinions regarding the various parameters of satisfaction. They were also assured
the valuable information given by them shall be treated as confidential & would be
& this raw data collected was transformed in to a needed list of information.
The collected data from the respondents with the help of research instruments i,e
questionnaire were tabulated, analyzed & inter predated. Liberal usage of bar
charts & graphs has been made in this study so as to make the data illustrative.
techniques.
includes the method for collecting the data the sample design, and
breakdown.
The study could not be conducted on a large sample size and area
Tata Nano is a rear-engined, four-passenger city car built by Tata Motors, aimed
primarily at the Indian market. The car has a fuel efficiency of around
26 kilometres per litre (73 mpg-imp; 61 mpg-US) on the highway and around
22 kilometres per litre (62 mpg-imp; 52 mpg-US) in the city. It debuted at the 9th
annual Auto Expo on January 10, 2008, at Pragati Maidan in New Delhi, India.
The Nano had its commercial launch on March 23, 2009 and a booking period
from April 9 to April 25, generating more than 200,000 bookings for the car. The
cars started to be delivered to customers after July 17, 2009, with a starting price
December 2009. This is cheaper than the Maruti 800, its main competitor and next
cheapest Indian car priced at Rs 184,641 ($3,988 U.S.).Tata had sought to produce
the least expensive production car in the world — aiming for a starting price of Rs
"new breed of 21st-century cars" that embody "a contrarian philosophy of smaller,
and potentially, "global gridlock". The Wall Street Journal confirmed a global
"Nano" means "small" in Gujarati, the language of the founders of the Tata Group.
"Nano" from the SI prefix for one-billionth is derived from the Greek, meaning
3.2 HISTORY
The introduction of the Nano received media attention due to its targeted low
price. The car is expected to boost the Indian economy, create entrepreneurial-
opportunities across India, as well as expand the Indian car market by 65%. The
car was envisioned by Ratan Tata, Chairman of the Tata Group and Tata Motors,
who has described it as an eco-friendly "people's car". Nano has been greatly
appreciated by many sources and the media for its low-cost and eco-friendly
electric-version, and, besides selling them in India, to also export them worldwide.
Critics of the car have questioned its safety in India (where reportedly 90,000
people are killed in road-accidents every year), and have also criticised the
promised that it would definitely release Nano's eco-friendly models alongside the
gasoline-model.
The Nano was originally to have been manufactured at a new factory in Singur,
West Bengal, but increasingly violent protests forced Tata to pull out October
2008. (See Singur factory pullout below.) Currently, Tata Motors is reportedly
plant has been proposed has also agreed to match all the incentives offered by
3.3 DESIGN
cheapest production car in 2003, inspired by the number of Indian families with
two-wheeled rather than four-wheeled vehicles. The Nano's development has been
tempered by the company's success in producing the low cost 4 wheeled Ace truck
in May 2005.
Contrary to speculation that the car might be a simple four-wheeled auto rickshaw,
The Times of India reported the vehicle is "a properly designed and built car". The
Chairman is reported to have said, "It is not a car with plastic curtains or no
To achieve its design goals, Tata refined the manufacturing process, emphasized
innovation and sought new design approaches from suppliers. The car was
Ratan Tata requesting certain changes, such as the elimination of one of two
Bosch, such as fuel injection, brake system, Value Motronic ECU, ABS and other
technologies.
The Nano has 21% more interior space (albeit mostly as headroom, due to its tall
stance) and an 8% smaller exterior compared to its closest rival, the Maruti 800.
Tata offered the car in three versions: the basic Tata Nano Std; the CX; and the
LX. The CX and LX versions each have air conditioning, power windows, and
central locking. Tata has set its initial production target at 250,000 units per year.
• The Nano's car boot does not open. Instead, the rear seats can be folded
• The base model has only three lug nuts on the wheels instead of the usual
four.
3.5 PRICE
Tata initially targeted the vehicle as "the least expensive production car in the
(using exchange rate as of 22 March 2009)6 years ago, despite rapidly rising
As of August 2008, material costs had risen from 13% to 23% over the car’s
full metal-body
braking system
Source (Secondary Data)
TABLE NO: 1
(N=50
GROUP RESPONDENTS
18-25 5 10 %
25-35 11 22 %
34-40 12 24 %
45 & above 22 44 %
Total 50 100%
Analysis
The above table shows that majority of respondents fall in the category age
the age group of 25 to 35 & lastly 10% in the age group of 18-25.
25
40 & above
20 35-40
25-35
18-25
15
22
10
11 12
5
5
0
a b c d
Inference
TABLE NO: 2
(N=50)
RESPONDENTS
Under graduate 14 28 %
Graduate 10 20 %
Post- graduate 16 32 %
Others 10 20 %
Total 50 100%
Source (Primary Data)
Analysis
16
14
12
10 others
8 16 post-graduate
14 graduate
6
10 10 under graduate
4
2
0
a b c d
Inference
Thus it can be inferred that majority of the car owners are post-graduate and
under graduate, so it is clear that most of the customer are educated. Thus it
is easy to understand about the product and take the right decision.
TABLE NO: 3
INCOME RESPONDENTS
20000-30000 10 20 %
30000-40000 17 34 %
40000-50000 14 28 %
Total 50 100%
(N=50)
Analysis
As Tata Motors boasts to give cars to its customers for least price in India so
maximum its preferred by middle class being 34% of them as their owners.
In India majority of the population belong to middle income group, the fact
that this sector prefers Tata cars the most as indicated by the study reveals
Graph – 3
18
16
14
12
25,000 & above
10
17 20,000-25,000
8 15,000-20,000
14
6 10,000-15,000
10 9
4
2
0
a b c d
Inference
Rs. 30,000-40,000.
OCCUPATION OF RESPONDENTS:
TABLE NO: 4
(N=50)
RESPONDENTS
Student 2 4%
Service 14 28 %
Business 21 42 %
Professional 13 26 %
Total 50 100%
Analysis
The statistical data reveal that majority are in business class being 42%,
service sector 28%, professional being 26% and also owned by 4% students.
M.S. Ramaiah College of Arts, Science & Commerce 34
Tata Nano
It shows that it has favorable impact on respondents who are in service
sector.
Graph -4
25
20
15 PROFESSIONAL
BUSINESS
10 21
SERVICE
14 13 STUDENT
5
2
0
A B C D
Inference
RESPONDENTS
TABLE NO: 5
(N=50)
RESPONDENTS
Tata Indica 4 8%
Others 2 4%
Total 50 100%
Analysis
Maruthi Zen, 14% of them owned Tata Nano, 8% owned Tata Indica and 4%
GRAPH NO: 5
RESPONDENTS
35%
32%
30%
25%
22%
20%
20%
14%
15%
10%
8%
5% 4%
0%
Tata Indica Maruthi Zen Maruthi Alto Tata Nano Hyundai Santro Others
Inference
TABLE NO: 6
(N=50)
RESPONDENTS
15-25 9 18 %
25-40 17 34 %
40-55 8 16 %
55 & above 16 32 %
Total 50 100%
Analysis
The statistics reveal that 34% respondent’s traveled around 25-40 Kms per
Graph – 6
34%
35%
32%
30%
25%
20% 18%
16%
15%
10%
5%
0%
15-25 25-40 40-55 55 & above
Inference
kilometers. It can be concluded that the users of cars traveled within the city
limits.
TABLE NO: 7
(N=50)
RESPONDENTS
COLLEGE 1 2%
OFFICE 18 36 %
JOB 7 14 %
OTHERS 24 48 %
Total 50 100%
Analysis
purpose i.e. 36%. 48% of them used it for other purposes and 14% of them
25
20
15 OTHERS
24 JOB
10 OFFICE
18
COLLEGE
5
7
0 1
a b c d
Inference
It can be inferred from the above graph that on an average respondents used
RESPONDENTS
Hoarding 4 8%
Word-of-Mouth 11 22%
Others 7 14%
Total 50 100%
Analysis
The above table shows that majority of the respondents i.e. 46% of them
came to know about Tata Nano through media which includes TV, radio and
GRAPH NO: 8
Word-of-Mouth 22%
Hoarding 8%
Inference
Awareness level among the respondents about Tata Nano was mainly
Analysis
The above table shows that a large majority of the respondents i.e. 70% of
them prefer to go for Tata Nano because of its pricing, 28% went upon the
brand name of Tata Nano, 4% each preferred it due to fuel efficiency and
GRAPH NO: 9
Others 0%
Comfort 1%
Looks 4%
Fuel Efficiency 4%
Pricing 70%
Inference
Awareness level among the respondents about Tata Nano was mainly
TABLE NO: 10
(N=50)
RESPONDENTS
Yes 46 92%
No 4 8%
Total 50 100%
Source (Primary Data)
Analysis
The above table shows that according to a large majority of the respondents
i.e. 92% of them revealed that the demonstration of Tata Nano car was given
GRAPH NO: 10
No
8%
Yes
92%
Inference
The above graph reveals that most of the respondents got a demonstration of
TABLE NO: 10
RESPONDENTS
Yes 39 78%
No 11 22%
Total 50 100%
Source (Primary Data)
Analysis
The study reveals that 78% of customers are very well satisfied with the
available colors, while 22% of customers are not satisfied with colors.
GRAPH NO: 10
No
22%
Yes
78%
Inference
colors.
TABLE NO: 11
TATA NANO
(N=50)
RESPONDENTS
Yes 19 38%
No 31 62%
Total 50 100%
Analysis
The study reveals that 62% of customers do not have any plans of disposing
the present model. Still a good majority i.e. 38% of them like to dispose of
GRAPH NO: 11
TATA NANO
Yes
38%
No
62%
Inference
It can be inferred that majority of the respondents did not have an intention
TABLE NO: 12
(N=50)
RESPONDENTS
1 to 5 14 28%
5 to 10 31 62%
10 to 15 5 10%
Total 50 100%
Analysis
The study reveals that 62% of the respondents expect at least 5 to 10 free
GRAPH NO: 12
10 to 15
10% 1 to 5
28%
5 to 10
62%
Inference
TABLE – 13
M.S. Ramaiah College of Arts, Science & Commerce 54
Tata Nano
(N=50)
Comfort Level No. of Respondents Percentage
Excellent 10 20
Good 29 58
Average 07 14
Bad 04 8
Total 50 100
Source (Primary Data)
Analysis
The above table shows that 58% of the respondents had a good review about the
comfort level of Tata Nano. 20% of them had an excellent review about the comfort
of Tata Nano. 14% of them rated the comfort of Tata Nano as average and 8% of
GRAPH – 13
8
Bad
14
Average
58
Good
20
Excellent
0 10 20 30 40 50 60
Inference
From the analysis we can infer that majority of the respondents had an good review
TABLE – 14
(N=50)
Analysis
The above table shows that 45% of the respondents had a good review about the
technical features of Tata Nano. 30% of them had an excellent review about the
technical features of Tata Nano. 8% of them rated the technical features of Tata
GRAPH – 14
2
Bad
8
Average
45
Good
30
Excellent
0 5 10 15 20 25 30 35 40 45
Inference
From the analysis we can infer that majority of the respondents had an good and
excellent review about the technical features of the Tata Nano vehicle.
TABLE – 15
(N=50)
Analysis
The above table shows that 38% of the respondents had a good review about the fuel
efficiency of Tata Nano. 34% of them rated the fuel efficiency of Tata Nano as
average, 18% of them rated it as excellent and the rest 10% of them rated it as bad.
GRAPH – 15
10
Bad
34
Average
38
Good
18
Excellent
0 5 10 15 20 25 30 35 40
Inference
From the analysis we can infer that majority of the respondents had an good and
average review about the fuel efficiency of Tata Nano. This is one of the area
where the company has to improve a lot, because mileage is an important factor for
TABLE – 16
(N=50)
Analysis
The above table shows that a large majority of the respondents i.e. 86% of them had
no mechanical problems with their Tata Nano, 10% told sometimes they had, while
GRAPH – 16
45 43
40
35
30
25
20
15
10
5
5
2
0
None Sometimes Breaks Dow n Quite Often
Inference
From the analysis we can infer that majority of the respondents had no mechanical
TABLE – 17
(N=50)
M.S. Ramaiah College of Arts, Science & Commerce 62
Tata Nano
Regular Maintenance No. of Respondents Percentage
Required 14 28
Breaks Down Very Rarely 36 72
Total 50 100
Source (Primary Data)
Analysis
The above table shows that a large majority of the respondents i.e. 72% of them
suggest that their Tata Nano breaks down very rarely so regular maintenance is not
required. The remaining 28% of them feel they require regular maintenance of the
car.
GRAPH – 17
Required
28%
Inference
From the analysis we can infer that majority of the respondents had breakdowns
very rarely so they don’t require regular maintenance for their Tata Nano.
NANO
TABLE – 18
(N=50)
Analysis
The above table shows that according to majority of the respondents i.e. 74% of
them revealed that the prices of spare parts of Tata Nano is reasonable while the
GRAPH – 18
NANO.
80
74
70
60
50
40
30
26
20
10
0
0
Economical Reasonable Expensive
Inference
It can be inferred from the table and analysis that the prices of spare parts of Tata
TATA NANO
TABLE – 19
(N=50)
Analysis
The above table reveals that a very large majority i.e. 92% of the respondents were
highly satisfied with Tata Nano, while only 8% of them were not satisfied.
GRAPH – 19
No
15%
Yes
85%
Inference
It can be concluded that satisfaction level of the respondents regarding the Tata
SUMMARY OF FINDINGS
& above. This implies utmost importance & care should be given to their
age group.
2. The majority number of respondents falls in business category. Who use the
vehicles much more than others special importance must be given to this
people.
3. The majority of respondents use the vehicle for other purposes and who also travel
4. Most of the respondents are very well satisfied with the available colors and
they have also overall satisfied with the product the respondents have
properly, test drive was not provided and lack of financial schemes
7. Almost all the respondents say that cost of spares is high and
company / dealer.
10. Surveyed respondents had a good and average review about the
Tata Nano.
13. The survey revealed that the satisfaction level of the respondents
offered:
- The company / dealers should try and give its customers more no.
of free services.
customers.
- Should provide test drive facilities and bank loans so that the
From the survey its clear that customers are highly satisfied with Tata
The study revealed that advertising media was being referred before
customers and also needs to increase the fuel efficiency, this is one of
the area where the company has to improve a lot, because mileage is an
Books Referred
1. Marketing Management, Philip Kotler, Prentice Hall of India Pvt. Ltd., 2003.
1. Overdrive
2. Indian Journal
4. Auto Car
5. Company Journal
Web-sites
1. www.tatamotors.com
2. www.google.com
3. www.automobileindia.com
4. www.overdrivemagzine.com
5. www.indianindustry.com