Project Report

on
TATA GROUP (Tata Nano)

in
Information Technology for Managers

by
KASHISH SINHA
150085

Submitted to

Prof. Kalyan Agarwal

Post Graduate Diploma in Management (2022-2024)

Chandragupt Institute of Management Patna

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 ACKNOWLEDGEMENT

I take this opportunity to express my deep sense of gratitude, thanks and regards
towards all of those who have directly or indirectly helped me in the successful
completion of this project.

I present my sincere thanks to Prof. Kalyan Agarwal (Professor of Chandragupt

Institute of Management Patna) who guided me through all the phase.

I am grateful to all faculty members of Chandragupt Institute of Management

Patna and my friends who have helped me in the successful completion of this
project.

Last but not the least I am indebted to my PARENTS who provided me their time,
support and inspiration needed to prepare this report.

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 Contents

Acknowledgement .............................................................................................................. ii

CHAPTER 1: INTRODUCTION

CHAPTER 2: OBJECTIVE

CHAPTER 3: RESEARCH METHODOLOGY

CHAPTER 4: ANALYSIS AND FINDINGS

CHAPTER 5: CONCLUSION AND RECOMENDATION

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CHAPTER 1: INTRODUCTION

The Indian economy is largely dominated by the automobile industry. By 2026,

India is anticipated to be the third-largest automobile market in the world in terms
of volume. The automobile industry is considered to be growing rapidly because it
benefits other sectors of the economy. The $222 billion automotive industry is
expected to grow to $300 billion by 2026. The Indian government also encourages
foreign investment in the automobile sector and has allowed 100% FDI through the
automatic route. The Indian government encourages foreign investment in the
automobile sector and has allowed 100% FDI through the automatic route.

Growing need and wants of individual, increases the sales figure of vehicle. Two-
wheelers and passenger cars accounted for 76% and 17.4% market share in India.
Likewise, many passengers’ vehicle car which were sold between 1 lakh to 8 lakh
by many manufactures like Tata, Maruti, Honda etc. There was high competition
among these manufactures. But among these manufactures Tata, discovered that
the small car market in India has a lot of potential.

The chairman of Tata group came up with an idea “creating a car for common
man”. Then he decided to build a car that costs roughly the same as a bike called
TATA NANO and he set the price at Rs.1 lakh. The company branded it as
“People’s Car. The one man behind this project and policies was the chairman of
tata group, Ratan Tata.

CHAPTER 2: OBJECTIVE

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The overall objective of this study is to examine the reason behind the failure of
TATA Nano car. The specific objectives are:

 To Examine the actual reason of the failure of TATA Nano.

 To study the real expectations of the buyers of Tata nano.
 To study the mistakes done by the organizations.
 To examine that there is safety issue in tata nano or not.
 To offer suggestion and recommendation to the organizations in
order to boost the sales.

CHAPTER 3: RESEARCH METHODOLOGY

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This section contains the theoretical framework, which has a direct and indirect
relationship with the phenomenon investigated in the study. It also discusses the
author's research methodology and the framework of analysis used in this
dissertation. It also includes data collection and analysis methods to inform the
reader about the methods used to produce study results.

1. Research design –
The research design was descriptive as well as analytical
in order to attain specific goals.

2. Duration of the study: - 2009 – 2019 (sales figure of 11 year)

3. Data collection: Secondary data have been collected through various

publications of newspaper and information on the website.

4. Tools: Table

Limitation of the study-

1. The sample size is too small for the study's research

2. The Published resources related to this topic was not available easily.
3. The authenticity of knowledge or evidence is another potential research
limitation

CHAPTER 4: ANALYSIS AND FINDINGS

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This section of the research focuses on the analysis based on the findings.

*Source- autopunditz.

According to the statistics (Bar Graph) presented above, the trend line of sales
figure going upward till 2012, in fact highest sales recorded in 2012, but after that
trendline is going towards downward, and in 2019 Tata Motors produced only a
single unit of Nano.
Tata had planned to keep a production capacity of up to 2,50,000 units on hand in
case of emergency. However, the Nano nameplate could only sell 2,98,011 units in
its entire lifetime!
The initial excitement surrounding the car was so intense that sales of the Nano's
closest competitor, the Maruti 800, dropped by 20% immediately following its
unveiling.

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Tata reported the highest yearly sales of the Nano in 2012, and the model has
struggled to make an impact since then.

Why Tata Nano Failed?

According to my findings there are several reasons behind this failure, some of
them are following: -
 Least Expensive Vehicle- TATA nano promotes itself as the least
expensive vehicle, No one wants to drive least expensive vehicle. People
thinks Purchasing a vehicle represent the status symbol in the society.
 Using inappropriate word in advertising - The words "cheap" and
"lakhtakia" were used in Tata Nano's advertising for expansion and
showcasing throughout India, which harmed its image.
 Engine and design issue- Several cars caught fire, despite its low cost, as a
result people did not purchase it. The vehicle was not designed for sloping
terrain.

It is marketed as the "World's Cheapest Car." "It became known as the cheapest car
by the public and, I'm sorry to say, by ourselves, not by me, but by the company
when it was marketed." "I think that's unfortunate," Mr. Tata later admitted.
Extended Initial Waiting Period Customers were not prepared to wait, and the
marque's consistent branding as a "poor man's vehicle" turned them away.

CHAPTER 5: CONCLUSION AND RECOMMENDATION

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RECOMMENDATION

1. Tata motor have to work on their “quality” as nano was bad in their quality.
Due to this it faces safety problems.

2. While using any kinds of words in promotional activities and tagline,

organisation should be very careful, using inappropriate word leads towards
destruction and bad image.

3. Work closely with PR team in order to address the issue. Any

misunderstanding about product and policy will create big problem. example
tata nano, the organizations failed to address the vision of this car.

4. While designing a car, organization should follow all the parameters,

whether it is regarding to safety and build quality of engine.

5. Rather making it cheaper, focus on affordable with best qualities.

CONCLUSION

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Tata Motors is one of India's leading automobile manufacturers. People believe that Tata Cars
are people's cars because they meet all criteria. Tata Motors has knowledgeable salespeople, and
TATA Motors employees spend adequate time before and during sales. However, when it comes
to TATA NANO. Due to early reports of the Nano catching fire, Tata failed to significantly
entice Indian consumers. As a result, one of the major reasons why Tata Nano failed was the
perception that the vehicle was dangerous due to a compromise in quality to cut costs. The
perception that Tata Nano creates in the minds of its target audience is the primary reason for its
failure. Back then, owning a car was a luxury, not a necessity. The branding of the Nano as a
"cheap car" killed the entitlement that was supposed to come with it, and as a result, people did
not find it worthwhile to purchase.

References-
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https://www.autopunditz.com/post/gone-but-not-forgotten-series-tata-nano
https://startuptalky.com/tata-nano-case-study/
https://www.investindia.gov.in/sector/automobile
https://www.business-standard.com/article/automobile/govt-aims-to-raise-auto-sector-
contribution-to-gdp-job-creation-gadkari-121082501375_1.html
https://www.ibef.org/industry/india-automobiles#:~:text=Market%20Size,billion)%20in%20India
%20by%202025.

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