A Report On

In The Partial Fulfillment of

MBA Degree

2009-2011

Rajasthan Technical University, Kota

Submitted To: Submitted By:

Ms SAMRIDDHI JAIN CHIMANPAL

Faculty of DMS, PGC PSOM – A

POORNIMA SCHOOL OF MANAGEMENT,JAIPUR

1
 Acknowledgement

The beatitude, bliss and euphoria that accompany successful completion of any task would not
be complete without the expression of appreciation of simple virtues to the people who made it
possible. So, with reverence, veneration honor I acknowledge all those whose guidance and
encouragement has made successful in winding up this.

I take this opportunity to thank all the faculty of MBA department for their support and
encouragement which helped me in the completion of this report.

I extend my gratitude and thankfulness to POORNIMA SCHOOL OF MANAGEMENT,

JAIPUR.

Last but not the least I’m also grateful to my parents for providing me the continuous support to
motivate me to successfully complete my report.

Chiman Pal

2
 PREFACE

The underlying aim of the seminar on contemporary issue as an integral part of M.B.A
programme is to give presentation by the students on the issue. The topic of my seminar is
“COMING OF TATA NANO AS A LAKHTAKIYA CAR” . Dnuring to preparing tis report
I learn how will we can make a very low cost and useful thing for our society. Peoples
reviews are very positive for the nano . the nano is also known as “people’s car “.At present
nano is not on road but people want to drive this car as soon as possible . The Ratan tata was
also promised to peoples to give there car very soon ,but because of singure issues it delay. I like
to thanks my faculty to support me for preparing this report.

TABLE OF CONTENTS
3
S. NO. CONTENTS PAGE NO.

1. EXECUTIVE SUMMARY 5
2. RESEARCH METHODOLOGY 7
DURATION OF PROJECT 7
TYPES OF RASEARCH 8
SCOPE OF STUDY 9
3. CORE STUDY 10
INTRODUCTION 10
THE HIDDEN ECONOMICS 10
VEHICLE SUMMARY 14
BOOKING PROCESS 17
FINANCING 19
OVERVIEW 24
DESIGN 26
COST CUTTING OF FEATURES 27
MODEL VERSION 28
TECHNICAL SPEC IFICATION 29
EFFECT ON INDIAN ECONOMY 36
COMPETITORS 39
LIMITATIONS OF STUDY 41
RECOMMENDATION 42
4. SWOT ANALYSIS 43
5. CONCLUSION 45
6. BIBLIOGRAPHY
EXICUTIVE SUMMARY:

NANO : Not a small burden for Tata Motors

4
Kolkata, India — The burst of flashbulbs and the limelight that the launch of the Nano attracted
globally last week may have enhanced India’s national pride and its position as a small car
manufacturing hub. But the world’s cheapest, and perhaps smallest, car has also put extra
burdens on its maker, Tata Motors, already struggling under the weight of a huge Jaguar/Land
Rover acquisition last year and the global economic downturn.

Despite the stupendous response the Nano has received, few analysts think the car will add much
to the fortunes of the company for the next two years at least. On the contrary, the US$350
million that Tata M``otors has pumped in to churn out just 50,000 cars in the first year is
expected to create hurdles for the company in tapping into the credit market for the huge
additional sums it needs.

Just one day after the launch, the global rating agency Standard & Poor's downgraded the
company to B+ from BB- and kept the company “on credit watch with negative implications.”
This means that the company could be downgraded again in the near future, which could
significantly increase its borrowing costs.

“A combination of high debt levels and material deterioration in Tata Motors' cash flows,
derived from an adverse operating environment, will affect its credit protection measures,” said
Standard & Poor's credit analyst Manuel Guerena. Any improvements the Nano may bring to
Tata’s cash flow can only be expected after 2010. Meanwhile, the capital expenditure required to
fund Jaguar Land Rover and Nano could result in negative operating cash flows for the company,
he added.

Tata Motors bought Jaguar and Land Rover from Ford last year for about US$2.3 billion.

Ratan Tata, the 71-year-old Cornell-educated chairman of India’s biggest indigenous automaker,
painted a glum picture of the company in British media last weekend. He is seeking refinancing
from the British government to repay the debt Tata Motors went into for the acquisition. Tata
admitted that the company is strapped for cash, faces sliding demand, and could face
“devastating” times.

5
RESEARCH METHODOLOGY:

Duration of Project

WEEK 1: submission of blueprint of study

WEEK 2: submission of abstract and finalization of abstract

WEEK 3: collection of secondary data

6
WEEK 4: submission of synopsis on the basis of literacy review

WEEK 5: finalization of synopsis

WEEK 6: collection of secondary data to generate chapterisation

WEEK 7: finalization of chapterisation

WEEK 8: analysis of study

WEEK 9: finalization of report

WEEK 10: submission of report 15/5/2010.

Types of Research

Descriptive research

Descriptive research, also known as statistical research, describes data and characteristics about
the population or phenomenon being studied. Descriptive research answers the questions who,
what, where, how and when.

Although the data description is factual, accurate and systematic, the research cannot describe
what caused a situation. Thus, Descriptive research cannot be used to create causal relationship,
where one variable affects another.

7
The main goal of this type of research is to describe the data and characteristics about what is
being studied. The idea behind this type of research is to study frequencies, averages and other
statistical calculations. Although this research is highly accurate, it does not gather the causes
behind a situation.

Qualitative research:

It is unstructured approach. The study is classified as quality if the purpose of the study is to
describe a situation, problem and information is gathered through the use of variable if analysis
is done to establish variable in situation, problem without quantifying it. The extent of utilization
of services is a qualitative aspect as it involve estimating the number of people who use the
services.

Quantitative Research

It is structured approach where everything that form research process-objectives, design, sample
size, questions that research plan to ask to respondent is pre-determined.

Scope of Study

This project is related to tata nano as a lakhtakiya car that how was the possible to devlop the
nano car with price of one lakh with good specifications.

8
CORE STUDY:

Introduction

The tata NANO launched by ratan tata. It is called LAKHTAKIYA car because of it’s low price.
The tata nano is a rear engine, fourpassenger, city car.

The hidden economics of nano car

At the price of Rs. 1 lakh price point (the price of the cheapest variant). So, why would they still
want to produce it?
9
Granted, the one lakh car has been a very successful branding campaign and has got them a lot of
publicity both in India and internationally. But there might be a more economically rational
explanation as well. Tata is going to manufacture only around 50,000 Nanos a year. But the
demand is likely to be far higher than supply. Tata has come up with an innovative way to
capitalize on this.

Booking for the Nano closes on 25th of April, and one must pay the full price up-front to book a
car. At the close of the booking, a random selection will decide who gets the cars. The remaining
customers can choose to get back the money or lend it to Tata at 8%. Tata seems to be betting on
the fact that a lot of people will choose the second option. This is of tremendous use to Tata
which gets cheap money to finance its acquisition of Jaguar and Land Rover

Tata’s Nano, one man’s gain, another’s loss

March 21st, 2009

SANAND - As Tata Motors is all set to launch Nano, the world’s cheapest car, on Monday,
residents in Sanand, where Tata’s new Nano plant is being set up, are upbeat at the prospects.

Residents were excited, looking forward to the jobs it would create.

“The direct benefit of the project is the employment that it will create, but there are several
indirect benefits. It will create opportunities for the transport business, hotel industry and all
other small businesses will get a fillip,” said Ravubha Vaghela, a businessman.

But there were others for whom the wait seemed to be getting longer.

“The project has definitely put Sanand on the world map, but I don’t think the workers and
farmers will be much benefited out of it,” said Bahadurbhai, another resident.

Back in Singur, the mood is sombre despite the fact that the opponents of the project achieved
their goal by driving out the Tata Motors project.

10
“It is shocking and very sad. So many boys and girls took training and were dreaming of jobs.
There were proposals for huge development. Singur residents have been deprived of all that,”
said Srikanto Chatterjee, a resident.

Tata Motors Ltd moved in its ultra low-cost Nano car to Sanand in Gujarat following violent
protests at Singur in West Bengal.

The plant to be built at Sanand, near Ahmedabad, is located on about 1,100 acres, and will have
an initial capacity of 250,000 units, which can be expanded to up to 500,000 cars per year.

TATA NANO

The Tata Nano is a rear-engined, four-passenger city car built by Tata Motors, aimed
primarily at the Indian market. The car is very fuel efficient, achieving around 26.00km/l
on the highway and around 22.00km/l in the city. It was first presented at the 9 th annual
Auto Expo on 10 January 2008, at Pragati Maidan in New Delhi, India. Nano had a
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 sales of the car will begin in
July 2009, with a starting price of Rs 115,000 (rupees), which is approximately equal to
UK£1,467 or US$2,421 as of June 2009. This is cheaper than the Maruti 800, its main
competitor and next cheapest Indian car priced at 184,641 Rupees. Tata had sought to
produce the least expensive production car in the world for a starting price of Rs.100,000
(approximately US$2,000 in June 2009).

Nano" means "small" in Gujarati, the language of the founders of the Tata Group. In English, the
prefix "nano-" is often used to mean small. This derives from the Greek root 'nanos', meaning
dwarf.

THE TATA NANO ARRIVES

11
Tata Motors announced the commercial launch of the Tata Nano on March 23 , keenly
awaited across India since its unveiling on January 10, 2008. The Tata Nano is BS-III*
compliant and comes with an all-new 2-cylinder aluminium MPFI 624 cc petrol engine
mated to a four-speed gear box and will be available in three variants. The cars will be
on display across the country at Tata Motors Passenger Car dealerships and other select
authorised outlets from April 1st.

Speaking at a Press Conference, the Chairman of Tata Sons and Tata Motors, Mr. Ratan
N. Tata , said, “The Nano represents the spirit of breaking conventional barriers. From the
drawing board to its commercial launch, the concept, development and productionisation
of the car has overcome several challenges. It is to the credit of the team at Tata Motors
that a car once thought impossible by the world is now a reality. I hope it will provide safe,
affordable, four-wheel transportation to families who till now have not been able to own a car.
We are delighted in presenting the Tata Nano to India and the world.”

THE THREE VARIANTS

The Tata Nano offers an incredibly spacious passenger compartment which can comfortably seat
four adults. With a length of just 3.1 metres, width of 1.5 metres and height of 1.6 metres, the
Tata Nano has the smallest exterior footprint for a car in India but is 21% more spacious than the
smallest car available today. A high seating position makes ingress and egress easy. Its small size
coupled with a turning radius of just 4 metres, makes it extremely manoeuvrable in the smallest
of parking slots.

The three trim levels and their key features available at launch are:

Tata Nano Standard (BSII* and BSIII*): The standard version, in three colour options, single-
tone seats, and fold-down rear seat;

12
Tata Nano CX (BSII* and BSIII*): In five colour options, with heating and air-conditioning
(HVAC), two-tone seats, parcel shelf, booster-assisted brakes, fold-down rear seat with nap rest;

Tata Nano LX (BSIII*): With the features of CX plus complete fabric seats, central locking,
front power windows, body coloured exteriors in three premium colours, fog lamps, electronic
trip meter, cup holder in front console, mobile charger point, and rear spoiler. Many of these
features are not available on current entry-level small cars in the country.

PERFORMANCE & SPECIFICATIONS

Performance: The 2-cylinder engine – delivering 35 PS @ 5250 rpm and a torque of 48 Nm @

3000 rpm – enables the car to have a top speed of 105 kmph and negotiate inclines with a
gradeability of 30%

Fuel efficiency: 23.6 km/litre, certified by the Automotive Research Association of India (ARAI)
under mandated test conditions, which is the highest for any petrol car in India.

Emission: The high fuel efficiency, coupled with a low kerb weight of 600 kg, ensures that the
Tata Nano – at 101 gm / km – has the lowest CO2 emission amongst cars in India. The Tata
Nano is BS-III* compliant and is BS-IV* ready. It is also available in BS-II* norms.

Safety: The Tata Nano’s safety performance exceeds current regulatory requirements – it passes
the roll-over test and offset impact, which are not regulated in India. It has an all sheet-metal
body, reinforced passenger compartment, crumple zones, intrusion-resistant doors, besides
mandatory seat belts and complies fully with existing Indian safety standards. Tubeless tyres –
among which the rear ones are wider endowing extra stability – enhance safety.

Warranty: 18 months or 24,000 km, whichever is earlier.

13
VEHICLE SUMMARY;

Name: Tata Nano

Model: Petrol
Manufacture: Tata motors
Also called: The people’s car
Assembely: charodi , sanand, ahamdabad, Gujarat
Engine: 623 cc(38 cu in)
Length: 3100mm(122 in)
Width: 1500mm(59.1)
Heigth: 1600mm(63 in)
Weigth: 58 kg
Car Body Type: Hatchback

Segment: A Segment

Top Speed: 90

Fuel Consumption: Highway 26.00

Fuel Consumption: City 22.0

ENGINE SPECIFICATIONS

Displacement: 796cc, 3 cylinder

Engine Type: Petrol

Maximum Power: 33bhp

Maximum Torque:

OTHER SPECIFICATIONS

14
Seating Capacity: 4
Tyre Size:
Steering: No Power Steering

Brakes: Front Disk, Rear Drum

Gears: 4 Manual

Fuel Tank: 30.00

Body Color Bumpers: Yes

Tachometer: No

Alloys: No

ORVM Indicator: No

Xenon Headlamps: No

COMFORT AND CONVENIENCE

AC: Without Climate Control

Power Windows:
15
Central Locking: Manual

Remote Boot: No

Remote Fuel Filler: No

Rear Wiper: No

Rear Defogger: No

Steering Adjustment (Rake/Reach): No

Driver Seat Adjustment: Manual

Leather Seats: No

Door Mirror: Driver Side

Tinted Glass: No

Rear AC Vent: No

Folding Rear Seats: No

Sun Roof: No

Buttons/Controls on Steering: No

Auto Viper: No

Auto Headlamp: No

ACTIVE AND PASSIVE SAFETY

Airbag: No

Parking Sensors: No

Fog Lamp:
Traction Control: No

EBD: No

ABS: No

ESP: No

THE BOOKING PROCESS:

16
In view of the expected significant demand and limited production capacity initially until the
Sanand plant is fully ramped up to capacity, the Tata Nano will be available through a booking
mode.

Tata Motors has entered into an exclusive agreement with the State Bank of India to manage the
booking process.

The sale of application forms and acceptance of booking will start from April 9th 2009 till the
end of day April 25th 2009. The application forms will be available at a price of Rs. 300, with a
range of offers from select associate Tata Group companies. The application forms will be
available at over 30,000 locations in about 1,000 cities through Tata Motors Passenger Car
dealerships, State Bank of India and its branches, its subsidiaries and associates, other preferred
financiers, and outlets of Westside, Croma, ‘World of Titan’ and Tata Indicom exclusive stores.

After collecting the forms, customers have two options. They can either pay the entire booking
amount themselves or seek financing of the booking amount.

For those who seek financing, Tata Motors has entered into agreements with 15 preferred
banks/NBFCs for the Tata Nano booking loan product. The booking product offered by these
banks will enable a Tata Nano to be booked by paying an amount starting Rs. 2999/- only. Their
chosen financier will directly submit their application forms to the State Bank of India on their
behalf.

Those, who choose to themselves pay their entire booking amount, can submit their application
forms to State Bank of India through 1,350 notified branches in 850 cites, and also at Tata
Motors Passenger Car dealerships, Westside and Croma outlets. Option to submit bookings
online is available

Within 60 days of the closure of bookings, Tata Motors will process and announce the allotment
of 100,000 cars in the first phase of deliveries, through a computerised random selection
procedure. These 100,000 allotments will be price protected for the launch prices till delivery of
the cars but the booking amounts will not bear any interest for the customers. Deliveries will
commence from July 2009.

17
Applicants have the option to retain their booking deposit, even if they do not get allotment in
the first phase. Those who choose this option will be eligible for interest on their deposit,
effective from the date of announcement of allotment of the second phase, at a rate of 8.5% for
retention period between one year to two year and 8.75% for a retention period of more than 2
years. Allotment of retainees will be simultaneously communicated, along with the allotment of
the first 100,000 cars.

Tata Nano Financing:

The Tata nano bookings are due to start on the 9th April 2009 and will go on till the 25th April.
Tata motors have entered into an agreement with the largest bank in the country that is the State
Bank of India which will manage the entire booking process. The application forms for the Tata
Nano will be available at a nominal price of Rs. 300 and the application forms will be available
at various locations such as the Tata motors showrooms, State bank of India branches, Tata
indicom outlets, titan show rooms and various other places like Westside and chroma stores.

After collecting the nano application forms customers can opt for financing of the cookin amount
or could pay the amount themselves. Those of you who are interested in availing financing can
approach about fifteen banks and non banking financial companies. The names of these banks
18
and non banking financial companies have been listed below. Tata Nano financing or loans can
be obtained from

 State Bank of India

 Tata Motor Finance
 State Bank of Patiala
 ICICI Bank
 State Bank of Travancore
 State Bank of Mysore
 State Bank of Hyderabad
 State Bank of Bikaner
 State Bank of Jaipur
 State Bank of Indore
 Axis Bank
 Punjab National Bank
 Federal Bank Corporation Bank
 Indian Bank
 Central Bank of India

To refer to the updated list of tata nano banks you can visit tatanano.Com. You can even book
the car at that wThe booking of the Tata Nano is open from April 9 and will continue up to the
end of day on April 25, 2009. Tata Motors has entered into agreements with 18 preferred banks /
NBFCs to enable prospective customers to get finance and facilitate booking of the car.

The sale of application forms has already started from April 1, to a very encouraging response.
The Tata Nano website has recorded over 50 million (five crore) hits, including over 20 million
(two crore) hits in the fortnight since the launch on March 23, 2009. The forms are available at a
price of Rs300 (for online booking Rs200). The forms can be bought at over 30,000 locations in
about 1,000 cities through Tata Motors passenger car dealerships, State Bank of India and its
branches, its subsidiaries and associates, other preferred financiers, and outlets of Westside,
Croma, World of Titan and Tata Indicom exclusive stores. The forms come with a range of
offers from select associate Tata group companies up to Rs1,100.

19
Customers can either pay the entire booking amount - of Rs95,000 (Tata Nano Std), Rs120,000
(Tata Nano CX), and Rs140,000 (Tata Nano LX) - themselves or seek financing of the booking
amount.

Booking amount financing available from Rs2,850

The company’s partnership with the preferred financing partners has enabled attractive options
of financing the booking amount, which start from a low of Rs2,850. The details are as follows:

Financing of booking amount of Rs95,000

Preferred banks / NBFCs banks
for the Tata Nano Std version

Canara Bank Rs2,850

Central Bank of India Rs3,256

Corporation Bank Rs2,999

ICICI Bank Rs2,999

Indian bank Rs3,343

Punjab National Bank Rs3,733

State Bank of Bikaner and Jaipur Rs2,999

State Bank of Hyderabad Rs2,999

State Bank of India Rs2,999

State Bank of Indore Rs3,516

State Bank of Mysore Rs2,999

State Bank of Patiala Rs2,999

State Bank of Tranvancore Rs2,999

Tata Motor Finance Rs3,199

The Federal Bank Rs4,110

UCO Bank Rs2,975

Union Bank of India Rs2,950

United Bank of India Rs3,137

20
Retail auto loan interest rates for the Tata Nano

Post the successful allotment of the bookings, customers can convert their booking loan into a
retail auto loan for the Tata Nano at very attractive rates with the preferred financiers:

Preferred banks / NBFCs Interest rates post allotment

Canara Bank 9.5-11%

Central Bank of India 9.5-11%

Corporation Bank 11-11.5%

ICICI Bank 13.00%

Indian bank 11%

Punjab National Bank 11%

State Bank of Bikaner and Jaipur 11.75%

State Bank of Hyderabad 11.75%

State Bank of India 10.00%

State Bank of Indore 11.50%

State Bank of Mysore 11.25-11.75%

State Bank of Patiala 11.50–12%

State Bank of Tranvancore 11.75-12%

Tata Motor Finance 12–13%

The Federal Bank 14.25%

UCO Bank 11–11.50%

Union Bank of India 11-11.25%

United Bank of India 9%

21
People's car Nano earns rave "The car is good to look at. There is a space in the market
between two-wheelers and the 800 (Maruti's small car). It will be a success if they deliver what
they promised. And I see no reason why they can't."
reviews :

Here are the first reactions of some of the most prominent industry experts as they told to
various news agencies after the launch of Tata Nano.

Jagdish Khattar, former managing director, Maruti Suzuki

Ramesh Suri, Chairman, Subros

"The best thing is that they have kept the price at levels promised at concept stage. It is good to
look at. I can't say about the driving experience as I have not taken a trial."
Shinzo Nakanishi, Managing Director, Maruti Suzuki India Ltd
"We cannot make a cheaper car. We don't know how to make a Rs 1 lakh car unless we sacrifice
something.
We won't go below the 800 in our product line-up, but this car may impact some of our Maruti
800 sales"

Anand Mahindra, Managing Director, Mahindra & Mahindra Ltd

"I think it's a moment of history and I'm delighted an Indian company is leading the way."

Venu Srinivasan, Chairman & Managing Director, TVS Motor Co

"It is fantastic, outstanding engineering. It helps redefine the sector in the country. It has
established new grounds."

P Sam, Group Head, Marketing & Sales, Yamaha Motor India Sales Pvt Ltd
"The Rs 1 lakh rupee car is not going to impact our potential customers. Our customers would
buy our products for the sheer joy of riding."

22
Onkar Kanwar, Apollo Tyres Ltd
"I congratulate Tata. He has delivered what he promised."

P Balendran, Director and Vice President, General Motors India

"It's an exciting product. I don't think it will not affect small car market, but it may have an affect
on the sales of two-wheelers and second-hand small cars."

Sylvain Bilaine, Managing Director, Renault India

"Tata's car is cute and he (Ratan Tata) is doing a great job. I would like to see in the coming
months the retail
price."

Ashok Singh, Delhi Police Constable:

"It is a dream come true. I look forward to buying that car. My wife will be really happy."

G, Colquhoun, Reader in Manufacturing Systems, School of Engineering

Liverpool
"This is an important step for Asian markets. I look forward to this car being introduced in
European markets."

Overview:

The introduction of the Nano received media attention due to its targeted low price. The
Financial Times reported: " If ever there were a symbol of India’s ambitions to become a
modern nation, it would surely be the Nano, the tiny car with the even tinier price-tag.
A triumph of homegrown engineering, the $2,200 (€1,490, £1,186) Nano encapsulates the
dream of millions of Indians groping for a shot at urban prosperity." 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
23
and eco-friendly initiatives which include using compressed-air as fuel and an electric-
version (E-Nano). Tata Group is expected to mass-manufacture the Nano, particularly the
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 pollution that it would
cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri). However, Tata
Motors has 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 manufacturing Nano at its
existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand
Gujarat.] The company will bank on existing dealer network for Nano initially. The new
Nano Plant could have a capacity of 500,000 units, compared to 300,000 for Singur.
Gujarat has also agreed to match all the incentives offered by West Bengal government.

Design:

24
Ratan Tata, the Chairman of Tata Motors, began development of the world's 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 roof —it's a real car.”

To achieve its design goals, Tata refined the manufacturing process, emphasized
innovation and sought new design approaches from suppliers. The car was designed at
Italy's Institute of Development in Automotive Engineering — with Ratan Tata requesting
certain changes, such as the elimination of one of two windscreen wipers. Some

25
components of the Nano are made in Germany by 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.

Cost cutting features:

 The Nano's trunk does not open. Instead, the rear seats can be folded down to
access the trunk space.
 it has a single windscreen wiper instead of the usual pair.
 It has no power steering.
 Its door opening lever was simplified.
 It has three nuts on the wheels instead of the customary four.
 It only has one side view mirror.

Price
Tata initially targeted the vehicle as "the least expensive production car in the world” —
aiming for a starting price of 100,000 rupees or approximately US$2000 (using exchange
rate as of March 22, 2009) 6 years ago, despite rapidly rising material prices at the time.

As of August 2008, material costs had risen from 13% to 23% over the car’s
development, and Tata faced the choice of :

 introducing the car with an artificially low price through government subsidies and
tax-breaks
 forgoing profit on the car

26
  using vertical- integration to artificially boost profits on cars at the expense of
their materials industries
 partially using inexpensive polymers or biodegradable plastics instead of a full
metal-body.
 raising the price of the car.

Model versions:

At its launch the Nano was available in three trim levels.

 The basic Tata Nano Std priced at 123,000 Rupees has no extras;

27
  the deluxe Tata Nano CX at 151,000 Rupees has air conditioning;
 the luxury Tata Nano LX at 172,000 Rupees has air conditioning, power windows
and central locking
 the Nano Europa, European version of the Tata Nano has all of the above plus a
larger body, bigger 3-cylinder engine, anti-lock braking system (ABS) and meets
European crash standards and emission norms.

The base model will have fixed seats, except for the driver's, which will be adjustable,
while the deluxe and luxury models will get air conditioning and body coloured
bumpers.

Photographs of some Nano models at the Auto Expo 2008 in New Delhi.

The
interior of
the Nano Red Tata Nano : standard
model
Nano in yellow Rear of Tata Nano in
yellow

Technical specifications:
According to Tata Group's Chairman Ratan Tata, the Nano is a 33 PS (33 hp/24 kW) car
with a 623 cc rear engine and rear wheel drive, and has a fuel economy of 4.55 L/100 km
(21.97 km/L, 51.7 mpg (US), 62 mpg (UK)) under city road conditions, and 3.85 L/100  km
on highways ( 25.974 km/L, 61.1 mpg (US), 73.3 mpg (UK)). It is the first time a two-
cylinder non-opposed petrol engine will be used in a car with a single balance shaft. Tata
Motors has reportedly filed 34 patents related to the innovations in the design of Nano,

28
with powertrain accounting for over half of them. The project head, Girish Wagh has
been credited with being one of the brains behind Nano's desige.

Much has been made of Tata's patents pending for the Nano. Yet during a news
conference at the New Delhi Auto Expo , Ratan Tata pointed out none of these is
revolutionary or represents earth-shaking technology. He said most relate to rather
mundane items such as the two-cylinder engine’s balance shaft, and how the gears were
cut in the transmission.

Though the car has been appreciated by many sources, including Reuters due to "the way
it has tweaked existing technologies to target an as-yet untapped segment of the
market", yet it has been stated by the same sources that Nano is not quite " revolutionary
in its technology", just low in price. Moreover, technologies which are expected of the
new and yet- to- be- released car include a revolutionary compressed-air fuel system and
an eco-friendly electric-version, technologies on which Tata is reportedly already working,
though no official incorporation- date for these technologies in the new car has been
released.

According to Tata, the Nano complies with Bharat Stage-III and Euro-IV emission
standards. Ratan Tata also said, 'The car has passed the full-frontal crash and the side
impact crash'. Tata Nano passed the required 'homologation’ tests with Pune- based
Automotive Research Association of India (ARAI). This means that the car has met all the
specified criteria for roadworthiness laid out by the government including emissions or
noise & vibration and can now ply on Indian roads. Tata Nano managed to score around
24 km per litre during its ‘homologation’ tests with ARAI. This makes Tata Nano the
most fuel efficient car in India. Nano will be the first car in India to display the actual
fuel mileage figures it recorded

at ARAI’s tests on its windshield. According to ARAI it conforms to Euro IV emission

standards which will come into effect in India in 2010.

29
Rear mounted engine

The use of a rear mounted engine to help maximize interior space makes the Nano similar
to the original Fiat 500, another technically innovative "people's car". A concept vehicle
similar in styling to the Nano, also with rear engined layout was proposed by the UK
Rover Group in the 1990s to succeed the original Mini but was not put into production.
The eventual new mini was much larger and technically conservative. The independent,
and now-defunct, MG Rover Group later based their Rover City Rover on the Tata Indica.

Tata is also reported to be contemplating offering a compressed air engine as an option.

Engine: 2 cylinder petrol with Bosch

multi-point fuel injection (single
injector) all aluminium 33 
horsepower (25 kW) 624 cc
(38 cu in)

Value Motronic engine

management platform from Bosch

2 valves per cylinder overhead

camshaft

Compression ratio: 9.5:1

30
 bore × stroke: 73.5 mm (2.9 in) ×
73.5 mm (2.9 in)

Power: 33 PS (33 hp/24 kW) @

5500 rpm

Torque: 48 N·m (35 ft·lbf) @ 2500

rpm

Layout and Rear wheel drive

Transmission
4-speed manual transmission

Steering mechanical rack and pinion

Turning radius: 4 metres

Performance Acceleration: 0-70 km/h (43 mph):

14 seconds

Maximum speed: 120 km/h

(75 mph)

Fuel efficiency (overall): 20

kilometres per litre (5 litres per 100
kilometres (56 mpg-imp; 47 mpg-US))

Body and Seat belt: 4

31
dimensions Trunk capacity: 15 L (0.53 cu ft)

Suspension, Front brake: drum

Tires & Brakes

Rear brake: drum

Front track: 1,325 mm (52.2 in)

Rear track: 1,315 mm (51.8 in)

Ground clearance: 180 mm (7.1 in)

Front suspension: McPherson strut

with lower A arm

Rear suspension: Independent coil

spring

12-inch wheels

Diesel
Wheel sunplugged .com reported that an anonymous source claimed a diesel variant
would be available in September 2009.

Compressed-air engine
32
Tata Motors is working with a French firm on using compressed air as an energy source.
The company has tied up with Moteur Development International (MDI) for this purpose.

Electric drivetrain or electric-version

Tata is also believed to be making an electric version of the Nano, called the E-Nano
(reportedly with attached or side by solar panels as well) which might well turn out to be
the "world's cheapest electric car " which is more eco-friendly and has many enthusiasts
and media for its support. It's supposed to be as cheap as the conventional gasoline
version. Tata is making the Nano compliant with export market regulations and plans to
export such a car worldwide, particularly to the UK and the rest of continental Europe,
the US, and Australia.

Economic Times reported that the "electric Nano" "would still make good sense for
economic, clean and green personal mobility in countries around the world." According
to the Hamburg-based newspaper, Auto Bild, the E-Nano would be built in cooperation
with the Norwegian electric car specialist, Miljøbil Grenland AS.

Hybrid
Leftlane news reported that "a hybrid version [of Tata Nano] is also likely, although it is
not yet known whether the electric motor will be paired with a gasoline or diesel
version."

NANO ERUROPA

33
Tata Motors unveiled a version of the Nano mini-car called the Nano Europa at the
2009 Geneva Motor Show. The car will be coming to mainland Europe and the UK. and
will have a number of improvements over the standard Nano. The Nano Europa has an
increased wheelbase, a new engine and Improved interiors and exteriors. The Nano
Europa will be more expensive than the standard Nano with prices said to be around the
US$ 6000 mark.

Expectations

according to one report , India as well as other nations, such as European nations, have
great expectations from the Nano and are keenly awaiting it, especially the electric version of
the Nano, making it in all probability the "world's cheapest electric car" officially on record. The
car itself is expected to boost the Indian Economy as well as expand the Indian car market by
65%, according to rating agency CRISIl.

Potential effect on Indian economy:

Economic Times quotes:

34
 “ Tata Nano’s launch could expand the Indian car market by 65%, according to rating
agency CRISIL. The low price makes the car affordable for families with incomes of Rs
1 lakh [100,000] per annum, the agency said. The increase in the market is expected to
push up car sales by 20% over the previous year. “The unveiling of Tata Nano, the
cheapest car in the world, triggers an important event in the car market. Based on the
statement by company officials, CRISIL Research estimates the consumer price of the
car at around Rs 1.3 lakh. This brings down the cost of ownership of an entry level car
in India by 30%,” the company said in a report. ”

Place in history
Some news sources have compared the Nano with Henry Ford's Model T that coincidentally was
built around a century ago. Livemint said:

“ Ford Motor Co. is rich because Henry Ford used the assembly-line to produce the
Model T in 1908. Ratan Tata is a late entrepreneur, making the Nano in 2008.

India is 100 years behind. But we are waking up to the possibility of catching up. I just
hope our planners wake up soon. ”

Times of India also compared the Nano to the Model T:

“ This raises the question: How have the Tatas accomplished such a task? Pursuing this
question a fascinating story unfolds that reminds one of Henry Ford's Model T that was
built exactly one hundred years ago (September 1908). Ford wanted to make a car for
the multitude, not for the elite, with the best material and the best design that the
technology of his time could devise, and he wanted to make it, above all, at a price that
was affordable. This is the example that Ratan Tata has followed with determination.
When he announced the price of his car in an interview to the Financial Times during
the Geneva Motor Show, his colleagues were 'aghast', but he had set his goal. ”

35
The Nano, though not yet in production, has already been listed in the Guinness Book of World
Records as the world's cheapest car.

Criticism, issues and problems

India has 8 percent of the world’s vehicle fatalities and less than 1 per cent of its cars, with
more than 90,000 people killed on the country’s roads every year. Introducing a million
Nanos into the mix may bring more – and unwelcome – headlines.

Tata, which has the only crash-test facility in the country, said that the Nano "exceeds
current regulatory requirements". And while it is not a deathtrap – it has crumple zones, seat
belts and strong seat anchors – it is worth bearing in mind that total vehicle crash testing
(rather than just frontal impact), airbags and antilock braking systems are not mandatory.

Without these, the Nano would not even be considered for approval in Britain. Adding them
would double its price in India, which is why they have been omitted.

Tata Motors will offer a version of the Nano with these safety-features, including an airbag
system in its electric version. The Nano has an all sheet-metal body made from Japanese and
Korean steel, with safety features such as crumple zones, intrusion-resistant doors, seat-belts,
strong seats and anchorages, and the rear tailgate glass bonded to the body. Tires are tubeless.

Mass motorization

As the Nano was conceived and designed around introducing the automobile to a sector of the
population who are currently using eco-friendly bicycles and motorcycles, environmentalists are
concerned that its extraordinarily low price might lead to mass motorization in countries like
India and therefore possibly aggravate pollution as well as increase the demand for oil. The
ecology focused German newspaper die tageszeitung feels that such concerns are "inappropriate"
as the Tata Nano has lower emissions compared to the average Volkswagen, and that developing

36
countries shouldn't be denied the right to motorized mobility when industrialized countries
should be looking to reduce their emissions and usage of cars. Die Welt reports that the car
conforms with environmental protection, and will have the lowest emissions in India.

In crowded metropolitan cities like Mumbai, Ratan Tata has conceived a scheme to only offer
the Nano to those individuals who do not have an automobile already. The Nano will also
replace many overloaded and worn-out two-stroke polluting vehicles, both two and three-
wheeled. According to Anumita Roychowdhury, associate director of the Centre for Science and
Environment in New Delhi, "the low-cost cars will be disastrous" in the current policy and
regulatory framework.

Used car market effects

The Nano is alleged to have severely affected the used car market in India, as many Indians opt
to wait for the Nano's release rather than buying used cars, such as the Maruti 800 (a rebadged
Suzuki Alto), which is considered as the Nano's nearest competitor. Sales of new Maruti 800s
have dropped by 20%, and used ones by 30% following the unveiling of the Nano. As one
automotive journalist summarises; “People are asking themselves – and us - why they should
pay, say, 250,000 Rupees for a Maruti Alto, when they can wait and get a brand new Nano for
less in a few months’ time, a car that is actually bigger”.

Competitors:
Rival car makers including Bajaj Auto, Fiat, General Motors, Ford Motor, Hyundai and Toyota
Motor have all expressed interest in building a small car that is affordable to more middle-class
consumers in emerging markets. The bulk of demand there is for small cars because people are
much more sensitive to fuel prices. Rival car makers including Bajaj Auto, Honda and Toyota
are leading the way on so called cleaner gasoline-electric hybrids, and some environmentalists
argue getting prices down on these technologies is where efforts should be concentrated.
Inexpensive and eco-friendly electric-cars like Tara Tiny, Oreva Super (both reportedly even
cheaper than Tata Nano) and REVA pose even more significant danger to Nano. There are also
rumors of Maruti Suzuki introducing a lower priced version of Alto to counter Tata Nano.

37
38
Who Will Buy the Nano?

It is highly speculated that the majority of the buyers for Nano (expected now in 2009) will come
from the motorcycle users. But, this may not be as much as it is anticipated, purely from the
energy and pricing structure involved38. Energy and transport experts are in no doubt that in a
growing Indian economy; demand for cars through 2015 will be persistent at 14% a year, maybe
a little less in the megacities with saturation39. The Nano car will be a success (similar to Maruti
80040 when it arrived in the 80's). However, as the experts predict, it is inconclusive to say that
the cheapest car in the world will be the new mode of transport for the middle income group and
a majority of the motorcycles will shift to buy the Nano, especially in the immediate future.
There is also some discussion of Maruti 800 (and other manufacturers) in competition to the
Nano in the similar price range.

Llimitations of study:

Limitation of study are following:-

-Secondary data are limited.

39
-Data are not so much accurate.

-There are not exist more primary data.

RECOMMENDATION:

After studying the features about the tata nano although the car is made for the middle class of
society. It lacks the safety features as well as efficiency of engine is not up to the mark so
company needs to work more on its machinery and durability.

40
SWOT ANALYSIS:

Strenth:

 Low price and stylish

 High fuel efficiency
 Brand name
 First innovation

Weaknesses:

 Fiber body
 Low suspension power
 Low engine capacity
 Light vehicle

Opportunities:

 Bikers can be motivated

 Created a niche market
 Creates employment

41
Threats:

 New competitors – bajaj, Honda, etc.

 Rising cost of raw material
 Government may increase taxes in metros

42
CONCLUSION:

The Nano represents the spirit of breaking conventional barriers. From the drawing board
to its commercial launch, the concept, development and productionisation of the car has
overcome several challenges. It is to the credit of the team at Tata Motors that a car once
thought impossible by the world is now a reality. It is not a car with plastic curtains or no roof
it’s a real car. The bulk of demand there is for small cars because people are much more sensitive
to fuel prices. Rival car makers including Bajaj Auto, Honda and Toyota are leading the way on
so called cleaner gasoline-electric hybrids, and some environmentalists argue getting prices
down on these technologies is where efforts should be concentrated. Inexpensive and eco-
friendly electric-cars like Tara Tiny, Oreva Super (both reportedly even cheaper than Tata Nano)
and REVA pose even more significant danger to Nano. There are also rumors of Maruti Suzuki
introducing a lower priced version of Alto to counter Tata Nano. The acquisition of land was
initially criticised in February 2007, but later approved by the Calcutta High Court in 2008. As
political unrest and rains hampered the construction, Tata Motors delayed the launch of Nano to
September 2008.

Violence continued throughout 2008 and on September 2,2008 Tata Motors announced that they
have suspended work at Singur. On October 2 ,2008 Tata Motors announced that they are pulling
out of Singur. On October 7 2008, it was announced that the Chief Minister of Gujarat, Narendra
Modi had signed an MoU with Tata Motors for allocating land for Nano factory in Sanand in
Ahmedabad district of Gujarat. The Nano will also replace many overloaded and worn-out two-
stroke polluting vehicles, both two and three-wheeled. According to Anumita Roychowdhury,
associate director of the Centre for Science and Environment in New Delhi, "the low-cost cars
will be disastrous" in the current policy and regulatory framework. Tata Group is expected to
mass-manufacture the Nano, particularly the electric-version and besides selling them in
India, to also export them worldwide.

Nano was advance technology car with build up security and it’s can be hand to lower
purchaser people .small is beautiful seem to have become the marketing mantra of consumer
goods to push demand to slowdown.

43
 Webiliography

www.tatanano.com VIEWED ON 10- APRIL.

www.tatamotors.com VIEWED ON 15-APRIL.

www.google.co.in VIEWED ON 18-APRIL

www.wikipedia.com VIEWED ON 5-MAY

Bibliography

Kotler Philip, marketing management, Pearson Education, 13th edition.

44