PRE-DRAFT on TATA NANO PLANT SANAND

By Mohit Soni FY-III 355

Automotive Industry
The Automotive Industry in India is one of the largest in the world and one of the fastest growing globally. India's passenger car and commercial vehicle manufacturing industry is the 7th largest industry in the world with an annual production of more than 3.7 million units in 2010. According to recent reports, India is set to overtake Brazil to become the sixth largest passenger vehicle producer in the world, growing 16-18 per cent to sell around three million units in the course of 2011-12. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand. As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second fastest growing automobile market in the world. According to the Society of Indian Automobile Manufacturers, annual vehicle sales are projected to increase to 5 million by 2015 and more than 9 million by 2020. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads. The majority of India's car manufacturing industry is based around three clusters in the south, west and north. The southern cluster near Chennai is the biggest with 35% of the revenue share. The western hub near Maharashtra is 33% of the market. The northern cluster is primarily Haryana with 32%. Chennai, is also referred to as the "Detroit of India" with the India operations of Ford, Hyundai, Renault and Nissan headquartered in the city and BMW having an assembly plant on the outskirts. Chennai accounts for 60% of the country's automotive exports. Gurgaon and Manesar in Haryana form the northern cluster where the country's largest car manufacturer, Maruti Suzuki, is based. The Chakan corridor near Pune, Maharashtra is the western cluster with companies like General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land Rover, Fiat and Force Motors having assembly plants in the area. Aurangabad with Audi, Skoda and Volkswagen also forms part of the western cluster. Another emerging cluster is in the state of Gujarat with manufacturing facility of General Motors in Halol and further planned for Tata Nano at Sanand. Ford, Maruti Suzuki and Peugeot-Citroen plants are also set to come up in Gujarat. Kolkatta with Hindustan Motors, Noida with Honda and Bangalore with Toyota are some of the other automotive manufacturing regions around the country.

TATA MOTORS
Tata Motors owes its leading position in the Indian automobile industry to its strong focus on indigenisation. This focus has driven the Company to set up world-class manufacturing units with state-of-the-art technology. Every stage of product evolution-design, development, manufacturing, assembly and quality control, is carried out meticulously. Our manufacturing plants are situated at Jamshedpur in the East,Pune and Sanand in the West and Lucknow and Pantnagar in the North. Tata Motors plant for the Tata Nano at Sanand, in Ahmedabad district of Gujarat, marks the culmination of the Companys goal of making the Tata Nano available to hundreds of thousands of families, desirous of the car a safe, affordable and environmental friendly mode of transport. The capacity of the plant, to begin with, will be 250,000 cars per year to be achieved in phases, and with some balancing is expandable up to 350,000 cars per year. Provision for further capacity expansion has also been incorporated in this location. Built in a record time of 14 months starting November 2008, the integrated facility comprises Tata Motors own plant, spread over 725 acres, and an adjacent vendor park, spread over 375 acres, to house key component manufacturers for the Tata Nano. In line with latest world-class manufacturing practices, the Tata Nano plant has been equipped with state-of-the-art equipment. They include sophisticated robotics and high speed production lines. Conscious of the critical need of environment protection, the plant has energy-efficient motors, variable frequency drives, and systems to measure and monitor carbon levels. These are supplemented with extensive tree plantation, sustainable water sourcing through water harvesting and ground water recharging and harnessing solar energy for illumination.

Major Market Players

MAJOR MARKET PLAYERS for Automotive Industry in India for manufacturing low budget cars are as follows: 1. 2. 3. 4. 5. 6. TATA MOTORS MARUTI SUZUKI CHEVROLET HYUNDAI FORD FIAT

Expectations from the Visit

My Expectations from the Visit of TATA NANO PLANT at SANAND, GUJARAT are very high. I will like to know about the management of such a big and successful AUTOMOTIVE INDUSTRY of INDIA. I will be happy to see the latest Technology they use in manufacturing these economical cars. I will see their resource and labour management. I will see the type of organisational structure they follow.

Questions To Be Asked
1. How they keep their supply of raw material so proper? 2. What strategies they use to obtain full efficiency from their employees? 3. What they would prefer, less labour more machines or more labour less machines? 4. What is their process of production? 5. Which method they use to pay salaries or wages to their workers? 6. What are their plans or strategies to abtain a higher percentage of the market? 7. How they transport their goods to different places? 8. What precautionary measures do they keep in their factory? 9. What facilities do they provide to their workers besides salary? 10. What is their daily production?