Tata Motors passenger cars vehicles division president Rajiv Dube told ET that "the consumer profile for

the Nano will be fit-for-all." Earlier, Tata Motors MD Ravi Kant said that the buyer profile for the Nano would cut across traditionally defined socio-economic classifications and would appeal to the young and old alike. NishaSinghania, executive vice-president, Rediffusion YR, the ad agency for the Tata Nano, said the communication objective was to target the youth, women or even households that own high-end luxury cars. Tata Nano, the new model introduced by Tata motors, hailed as "the people's car", is an amazingly cheap car. With a price tag of US$ 2500, Tata Nano is indeed an affordable middle class family car. Tata Nano is a dream come true for an average Indian. His /her ideas about owning and driving a car will become a reality soon. An analysis of the new car seems necessary as it is bringing mobility to the masses in an efficient and economic manner.

Achieving the cost objective

Tata has defied the conventional odds and sceptics in the industry through the innovation of the world's cheapest car. Tata Nano is a marvel of a product yet audaciously economical and mechanically simple. It is a breakthrough in frugal engineering where innovation is driven by cost savin gs and sheer ingenuity. Tata managed to reorient the basic tenets of efficiency and practicality to meet the cost target.

Tata Nano's efficiency comes from including only those items that are necessary for basic transportation and eliminating the not so relevant ones i.e. having one part/component that can perform a task just as good as two parts/ components can do, thus resulting in cost savings, e.g. one windscreen wiper and one side mirror. Tata also refrains from including items that are not feasible due to monetary reasons. Radio, air conditioner (despite the sizzling heat in India), power steering are not included while the instrument panel consists of only a speedometer, odometer, and fuel gauge similar to that of the two -wheelers- basic, yet functional.

In addition, Tata has come up with practical ways to reduce car weight and thereby trim down the overall cost. It uses comparatively small and light engine, a 623cc two-cylinder petrol engine made of aluminium, unlike conventional engines which are made out of cast iron. The engine of Tata Nano is strategically placed at the back of the car leaving the front section for luggage, that too with the capacity of a briefcase. This is the most significant element in bringing down the weight and the overall cost of the car. Other factors that contribute towards the weight reduction

are the usage of hollow steering wheel shafts, plastic body panels and smaller tubeless tyres. As a result of these measures, Tata Nano weighs only about 590kg. Lesser weight and fewer parts mean less raw material and lower cost for Tata Nano.

Safety in mind

Besides having the right parts to meet the cost objective, Tata Nano has adequate features that exceed current regulatory requirements and meet minimum safety standards. It has a sheet-metal body with strong passenger compartment equipped with safety features such as crumple zones, intrusion -resistant doors, seat belts, strong seats and anchorages. The rear tailgate glass is fixed to the body and tubeless tyres enhance saf ety further.

Ownership cost

It is quite obvious that Tata Nano is cheap to manufacture, but the question is, does owning and operating a Nano over a period of time yield significant savings and benefits? While the low -price tag of Nano looks attractive, it is important to look at certain other factors like the running cost of the car in the long run. Potential buyers need to consider the rising price of petrol. Petrol prices have breached the US$ 100 mark with no sign of abating as global demand skyrocke ted. The influx of thousands of Tata Nano on Indian roads would elevate the demand for petrol and this might bring a new dimension to the continuous hike of petrol price in India, which still depends on the Middle East for oil. Petrol prices may reach a po int where owners of Tata Nano could no longer afford to buy petrol to run it. If that is the case, Tata Nano owners may leave their cars behind and resort to riding two wheelers. In such a scenario, Tata Nano's value proposition may no longer make an economic sense. The low cost of ownership model championed by Tata may not remain successful at times of surging energy prices.

The would-be owners of Tata Nano have to consider the cost of replacement parts and service maintenance for the car during the period of ownership. Tata Nano is built from scratch and most of the component parts are new and do not share platform with other models in the Tata family. As a result, it is difficult to assess the vehicle's reliability, durability and parts' longevity. These factors along with unavailability of the model have made it difficult to estimate the cost of ownership of Tata Nano and th e frequency of service trips. The overall cost of parts and services of Tata Nano is likely to be at the range of similarly sized car like Maruti 800. The perception of frequent parts breakdown and shorter service interval due to sub-standard parts and inf erior

Conclusion
Tata Nano achieves what most people deemed impossible through originality and ingenuity. It is a no frills car that serves the needs of the general public and India's deplorable road conditions and notorious traffic. In this sense, the production and launch of Tata Nano can be called a revolution - not only to the consumers but also to industry players. Other players are contemplating on their own versions of low cost alternatives as a result of the overwhelming response from the Indian public and all over the world during the pre-launching ceremony. Moreover, their skepticism is met with a surprise upon seeing the model in action. The next step forward for Tata is to address the possible concerns with regard to ownership in order for customers to grasp the value proposition that Tata is trying to propagate. This includes dispelling all perceptions of shortcomings normally associated with a low-cost car through vigorous testing on real roads using real users. The basic rule of customer service still applies. Tata Nano should meet the consumer's expectations by providing a reliable and modestly safe vehicle to drive. The car, with its immense recognition gained even before its launch, is expected to fulfill the dreams of common people

Nano overseas
The rise in petrol prices makes consumers around the world to look for a low cost car. Tata seems to capture this trend and is looking forward to introduce Tata Nano beyond Indian shores. One of the countries where Tata Nano is likely to make inroads is Thailand, dubbed as the 'Detroit of Asia', due to its extensive vehicle manufacturing activities in ASEAN region.

Thailand has introduced the 'Eco-Car' project, a framework laid by the government to build green cars that are fuel efficient and cost effective. Vehicle manufacturers all over the world are invited to submit plans for the Eco-car investment project in Thailand. Various incentives have been provided for manufacturers of green cars in Thailand, including exemption from corporate tax for up to eight years and duty exemption for imported machinery. However, the investment should yield an output of 100,000 units by the fifth year of production. Such initiative bodes well for Tata Nano. Tata is one of the seven manufacturers that have submitted applications for the Eco-Car project and its application has already been approved. Tata might use this plan to export to other ASEAN countries through the ASEAN free trade area agreement (AFTA).