Tata motors is a part of Tata groups, manufacturing automobiles and

vehicles since 1954. Ratan Tata has always had a vision to provide utmost
services at affordable rates in India, that was when he promised the people
of India that he will launch a car worth only a lakh provided all the
comforts and safety standards. he initially had thought of Singur' west
Bengal as the manufacturing hub and bought a land of 997 acres for the
manufacturing of nano cars by state government support but the land
acquisition demanded displacement of farmers, for which it attracted
controversies and heavy criticisms, 'save farmland' movement was started by
the opposition leader, Mamata Banerjee to gain support and vote from the
people but Ratan Tata lost his patience on September 22nn 2008, when 2
security of the Tata motor Singur plant were attacked at night. the company
then started evacuating the heavy machinery from Singur plant signalling
the end of Tata nano inn West Bengal. The opposition party in awe of public
support made a huge mistake as this venture could have got a number of
employment and growth in the state.

100s of crore's investment was on risk and the dream of rs. 1 lakh car Nano
was also put in danger. With the loss of sunk cost and other accompanying
losses in hundreds of crore, the project cost and profitability has been
significantly affected. A few trade teams from Europe and other places
cancelled their visits to West Bengal because of the fear and sense of
uncertainty about doing business in the state. Chandrajit Banerjee,
Director – General of Confederation of Indian Industry, said “ It will be a
huge setback for Bengal’s development.
At the same time a good number of states came
forward proactively to attract this pretegeous and high investment project
to give Philip to the industry and employment in their state unlike the
west Bengal opposition plotting to ruin their own pathway to growth and
development the other states were able to discover the opportunity and were
readily coming forward to execute the plan of rs. 1 lakh Nano, but Gujarat
came out victorious because of a variety of reasons and the offer it made
in terms of complete package. the manufacturing plant was then later
established in Sanand, Gujarat.

Ratan Tat's vision for affordable, private transport for millions of

Indians finally became a reality in January 2009. But the quantum of
vehicle it could produce at the time of launch and near future has been
significantly affected because of Singur Fiasco for if it had not been
occurred they could have saved a lot of time and money. Tata Motors's
Engineers worked long, sleepless hours for years, they cut weight,
unnecessary parts and cost and helped Tata keep its promise of Rs. 1 lakh
car. The Nano may not be revolutionary in looks but its unexpected safety
standards and bigger interiors than Maruti 800 have forever transformed the
automobile sector in country.

PESTEL ANALYSIS:

POLITICAL: Tata motors acquired a land of 997 acres for manufacturing Cars
by state government support, But this acquisition required the displacement
of farmers. It attracted heavy criticisms, “Save Farmland” movement was
started by opposition leader Mamata Bannerjee. On 3rd October 2008, Tata
motor closed its plant from Singur and was later established in Sanand,
Gujarat. here the political matters created a fiasco for the fully success
of project "Nano"

ECONOMICAL: The plan of a affordable, secure and safe car in India had
brought an amazing growth in the market. the high investment project also
gave a boost to the industry and employment rates in the state of Gujarat.
Consumer Disposable Income – The household income of the country has
increased constantly in the last decade and half, Tata's Nano can leverage
this trend to expand the market beyond its traditional customers by
employing a differentiated marketing campaign.

If the employment rate is high then it will provide enough customers for
Tata's Nano products

SOCIAL: The attitude towards health and safety is often reflected in the
quality of the products and cost structures of manufacturing processes.
Tata's Nano has stringent norms for health and safety norms so in emerging
economies it may have to compete with players who don’t have high cost
structures that of Tata's Nano.

Where ever Tata motors goes, may it be domestic or international markets,

it hires mostly the local population generating employment. Due to its age
long history and its welfare activities, Tata enjoys full public support.
Tata motors is also involved in philanthropy and supports around 600 NGOs.
Tata motors also works towards provided high standards of education to
students.

Car is something that everyone dreams for but due to high cost and
maintenance, people tend not to be able to afford a car, but Ratan Tata’s
vision had made it come true for millions of Indians to finally own a car
that is both safe and affordable.

TECHNOLOGICAL: If there is high level of investment in technology

development sector then there are high chances of building a self
sustaining ecosystem that drives innovation. Tata's Nano can leverage such
a situation to hire the best people in business. the engineers have had
spent long hours to figure out the ways to make a car that is safe,
affordable and light, they had to cut off extra weights, extra parts were
eliminated and a lot of technical advancements were used in order to make
the most affordable yet standard car " NANO"

ENVIRONMENTAL: Tata motors manufactures its vehicles according to the norms

of Indian and Euro standards of emission. TTL is fostered by Tata to
manufacture greener cars with low fuel consumption and lowest emission
gases possible. Tata motors has invested huge sums of money in its R&D
section to produce eco-cars. As an eco-friendly company, Tata motors has
also invested in various “Green Earth, Clean Earth” campaigns. It has also
worked towards the stopping of deforestation many years in a row. they had
also designed "Nano" in a way that it lowers the emissions of harmful
gases.

LEGAL: Transparency is essential for fair and consistent decision making.

If the process is consistent and transparent then Tata's Nano can plan
ahead with greater conviction. while in Singur, Tata motors had asked help
of the government support but was then evicted because of public reforms
and movements to save the farmer's right, later other state government had
approached Tata motors, to transfer the plant into the other states as per
his requirements and for that he had agreed to start the plant in Gujarat,
as Gujarat had offered more services and better method of course.