NANO

THE PEOPLE’S CAR

GROUP MEMBERS

• AKANKSHA SHRIVASTAVA (10IB-007)

• CHHAVI AGARWAL (10IT-013)
• PRATIMA RAO GUNTA (10IT-021)
• RAJESH MOHAN (10FN-088)

• RUDRA SHANKAR CHOWDHURY (10FN-097)

• SHAMINDRA MUKHERJEE (10FN-138)
 One of the
largest in the
world

Manufacturing
– 11 million Indian Seventh largest
vehicles Passenger +
Automobile Commercial Mfg
Exporting – 1.5 Industry Ind.
million vehicles

One of the
fastest
growing
Manufacturing
• India is a leading centre
• Hyundai exports annually 2,50,000 small cars
• Reva is a major attraction
• Many international players introducing smaller fuel efficient
cars
• Maruti exports cars for Nissan – European Market
• Nissan will export small cars from Indian assembly lines

Research and Development

• Nano ‘Electric’ on the development stage
• Nano ‘Diesel’ in the pipeline
• Bajaj designing a small car
 TATA MOTORS
• An MNC, a part of the Tata Group
• India’s largest automobile company - Revenues of USD 20 billion in 2009-10.
• In India
– Leader - in commercial vehicles 
– Among top three - in passenger vehicles.
• In the world
– Fourth largest truck manufacturer
– Second largest bus manufacturer
• Employs 24,000 workers.
• Established in 1945 manufacturing locomotives
• Manufactured its first commercial vehicle in 1954(collaboration with Daimler-
Benz AG, which ended in 1969)
•  Dual-listed company  - BSE and NYSE
HOW NANO CAME INTO BEING?
OF COURSE THERE WERE CRITICISMS
THE TG WAS VERY VISIBLE
 truck) joined the team.
grounds with ACE-the mini
(track record of breaking new
In August 2004, Girish Wagh
• “Go beyond just the usual cost reduction exercise.
Show the world the ingenuity of Indian engineers” Ratan Tata’s words:
• “Only countries like India or Pakistan
• These words had a far-reaching affect on the
product development team.
make a low-end ‘rural car’
Initially, the thought was to
PROJECT INITIATION
 Tata Motors
developed an In October
assembly kit 2006,
MRF, a leading Tata engineers
for distributors Tata’s Head of Narendra Jain
Costs dropped tyre found that
who would Hollow Sourcing, E. (credited with
as much as manufacturer, door handle
stock steering shafts Balasubramani the first
60% just by redesigned the had 70 percent
completely reduced am, negotiated gasoline
reengineering tyre to bear less parts than
knocked-down further costs with vendors engine made
and out of box extra weight one of the
(CKD) kits of and weight. to drastically by Tatas) built
thinking. on the rear cheapest
the car at reduce costs. a 624 cc engine
wheels. European cars.
warehouses producing 34
and assemble bhp.
them on site.
STEPS OF DEVELOPMENT OF THE CAR
INNOVATIVE AND MOTIVATING
REASONS FOR LOW COST
CAR LAUNCH
9th January, 2008. Venue: Auto Expo, Delhi. As excitement ran
high, Ratan Tata entered the stall housing the Nano.

Among the audience were Maruti Suzuki’s MD, Jagdish Khattar,

and home-grown F1 star, Narayan Kartikeyan.

The international and national media were reporting live. CNBC,

BBC and other channels were now reporting live from Delhi.

The components suppliers spoke of their experience of working

with Tata Motors on this project.

Delphi, a supplier, which developed the low cost centrally

maintained instrument cluster of the Nano, felt the biggest
learnings were:
• innovative thinking to cut costs,
• meeting time lines and
• eliminating wastages.
 Safe &
• Passed Frontal Crash Test at 48 kmph Pollution
Free
• Compliant to Euro IV and Bharat III Auto pollution norms
Fuel
• High on fuel efficiency , mileage of 20 kms per litre Efficiency
• Suitable and safe for people from lower income group
• Maintained original price: Rs 1,00,000 Price and
• Could accommodate a family of four along with space for Space
keeping the luggage
THE PEOPLE’S CAR
SO WHAT’S MISSING IN THE NANO?

No headlight Smaller tank

Less boot space
levelers capacity (15litres)

Poor engine Dissimilar tyre in

Poor traction
cooling and hence front (135) and
control
over heating back(155)

Price hike in
Steering too touch AC no decent in
subsequent
low LX and CX models
models
 OPPURTUNITIES FOR NANO
Since the liberalization of 1991, there has been a sizeable growth in the
Indian middle class

By 2015 India’s middle class will control ,the largest block of income in the
country at 19 trillion Indian rupees (44% income)

Income growth to be biggest drivers of increasing consumption far

outweighing population growth

India is expected to become the fifth largest market by 2025.To grow to 51.5
trillion rupees (58% income)– 11 times the level of 2007

Positive changes in Social image, Education and Employment.

CHALLENGES TO TATA NANO
PROGRESS OF COMPETITORS

Bajaj Renault-
Fiat is planning to
Nissan's 'Ultra Low- Nissan’s Tata Nano
produce a low-cost
Cost Car' for competitor will go
car for India, which
emerging markets on sale in 2011 but
may make its debut
will be launched by it will go on sale in
in Indian market by
2011. Prototype India in 2012.
the 2012.
"LITE"
PROMOTIONAL STRATEGIES
BUZZ : The 1-lakh car created a buzz by itself

LONG WAITED : Low Availability created

desired and huge booking queues for the
Nano

The company used mass market promotion

strategy – innovative print ads

Appeals to price sensitive Consumers to meet

demand for a safe mode of transportation.

All proposed competitions of Nano in the

pipeline. No real competitor at present