CHAPTER - 1

1.1 INTRODUCTION

The Tata Nano is a city car manufactured by Tata Motors. Made and sold in India, the
Nano is the cheapest car in the world today. Before it went on sale, a price of 100000
(US$1,500) was widely touted. Since its 2009 debut, the price has increased; while the
Nano remains the lowest-cost four-wheeled passenger vehicle in India, it is significantly
more expensive than a motorcycle, a popular means of cheap transport in the country.

After having successfully launched the low cost Tata Ace truck in 2005, Tata Motors
began development of an affordable car that would appeal to the many Indians who drive
motorcycles. The purchase price of this no frills auto was brought down by dispensing
with most nonessential features, reducing the amount of steel used in its construction, and
relying on low cost Indian labour
The introduction of the Nano received much media attention due to its low price.

Tata Motors is working on a family of low-costcomposite cars that is expected to

complement the Nano, the automaker's ultra-low-cost car, said two people close to the
project.
However, opinion is divided on when to launch these vehicles, one of the persons said.
While one school of thought believes the composite car would be a good foil to the Nano,
the prevalent view in the company is that the car business should be stabilised before
launching a new vehicle based on 'non-conventional' technology and design. A more
likely launch before the composite car, therefore, would be that of a premium small car to
be built on a refurbished Indica platform.

Globally, composite vehicles are made of carbon fibre, which makes them expensive. To
reduce costs, the Tata car will use a material called poly-diallyl-phthalate (PDP), which is
used for industrial applications. Still, the car will cost slightly more than the Nano range.

Cars made of composites have their advantages because they are light-weight, thereby
making the vehicles more fuel-efficient. Materials such as PDP can also help drive down
costs as they are cheaper than the conventional steel and aluminum used to make car
frames and bodywork.

The car will be stronger, safer, lighter and simpler to make, and can be produced with
lower investments than a conventional metal-body car. A metal-body car has at least 500
bits and pieces while a composite car has just 25 moulds.

The low-cost composite platform will also be modular. A Tata Motors spokesperson did
not reply to an emailed questionnaire. However, a person aware of the strategy said the
immediate priority of the automaker was conventional technology rather than
2

composites and to stabilise the sales of the current range of products.

Karl Slym, the managing director of India's largest automaker by revenues, has initiated a
major restructuring exercise with an intent to make Tata Motors the second-largest
carmaker by sales and ensure its leadership position in the commercial vehicles space by
2020. The composite car has been successfully crash-tested at the Pune facilities of Tata
Motors, but most of the work on the project has been done in Italy. In fact, a prototype of
the car is currently in Italy.

The car's architecture and construction is the brainchild of Italian designer Marcello
Gandini, who is known for the use of composites in supercars such as Lamborghini's
Miura and the Countach. Tata Motors has purchased the technology and design from
Gandini, who has been at the forefront of the trend towards multi-matTata Nano to be
souped up, positioned as smart city car: Cyrus Mistry

1.2 HISTORY

After having successfully launched the low cost Tata Ace truck in 2005, Tata Motors
began development of an affordable car that would appeal to the many Indians who drive
motorcycles.[4] The purchase price of this no frills auto was brought down by dispensing
with most nonessential features, reducing the amount of steel used in its construction, and
relying on low cost Indian labour.[citation needed]
The introduction of the Nano received much media attention due to its low price
Tata Motors is one of the leading Indian car manufacturers. With a lot of experience and
decades of reliable service, Tata has been tremendously contributing towards the growth
of the Indian car industry. Tata cars in India carry the proud tag of being produced by the
country's largest automobile maker and the second largest passenger car maker. That said,
it's time we had a look at the Tata cars in India.

1.3 COMPANY PROFILE:

Tata Motors Limited is India's largest automobile company, with consolidated revenues of
USD 14 billion in 2008-09. It is the leader in commercial vehicles in each segment, and
among the top three in passenger vehicles with winning products in the compact, midsize
car and utility vehicle segments. The company is the world's fourth largest truck
manufacturer, and the world's second largest bus manufacturer. The company's 24,000
employees are guided by the vision to be "best in the manner in which we operate best in
the products we deliver and best in our value system and ethics." Established in 1945,
Tata Motors' presence indeed cuts across the length and breadth of India. Over 4 million
Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company's
manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune
(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad
(Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial
joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both
Fiat and Tata cars and Fiat powertrains. The company is establishing a new plant at
Sanand (Gujarat). The company's dealership, sales, services and spare parts network
comprises over 3500 touch points. Tata Motors also distributes and markets Fiat branded
cars in India. Tata Motors, the first company from India's engineering sector to be listed
in the New York Stock Exchange (September 2004), has also emerged as an international
automobile company. Through subsidiaries and associate companies, Tata Motors has
operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land
Rover, a business comprising the two iconic British brands that was acquired in 2008. In
2004, it acquired the Daewoo Commercial Vehicles Company, South Korea's second
largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has
launched several new products in the Korean market, while also exporting these products
to several international markets. Today two-thirds of heavy commercial vehicle exports
out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in
Hispano Carrocera, a reputed Spanish bus and coach manufacturer, and subsequently the
remaining stake in 2009. Tata Motors is committed to improving the quality of life of

communities by working on four thrust areas employability, education, health and

environment. The activities touch the lives of more than a million citizens. The
company's support on education and employability is focused on youth and women. They
range from schools to technical education institutes to actual facilitation of income
generation. In health, our intervention is in both preventive and curative health care. The
goal of environment protection is achieved through tree plantation, conserving water and
creating new water bodies and, last but not the least, by introducing appropriate
technologies in our vehicles and operations for constantly enhancing environment care.
With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.

Nano A small family concept

The main idea behind TATA NANO was perceived by the chairman of TATA group
himself who saw a family of four going on a scooter in rain he wanted to develop a
transport which was affordable, safe and could face all types of weathers. This turned out
to be the most ambitious project of Tata motors till date when Mr Ratan Tata told this to
one of his managing directors Mr. Ravi Kant he was also interested about the idea. Mr.
Ravi Kant had learned from his experience that People want to move from twowheelers to four-wheelers but they cannot afford it. More and more can, but Indian car
buyers today represent a tiny slice of a potentially giant market India has just seven cars
per 1,000 people. India's auto industry has grown an average of 12% for the past decade,
but just 1.3 million passenger vehicles were sold in India in the fiscal year ending March
2006. That means a billion Indians buy about the same number of cars in a year as 300
million Americans buy in a month. If four wheels cost as little as two wheels, that could
change fast. About 7 million scooters and motorcycles were sold in India last year,
typically for prices between 30,000 rupees and 70,000 rupees, about $675 to $1,600. Tata
is targeting a price of 100,000 rupees one lakh, in Indian 19 terms of measurement or
about $2,500 at current exchange rates, for its small car. That sounds impossibly cheap in
the West but remains three times higher than India's annual per capita income. The
average pay for factory workers at Tata Motors is just $5,500 a year.

1.4 Suppliers to the Tata Nano

Supplier Product
Bosch Gasoline injection system (diesel will follow), starter, alternator, brake
systems
Caparo Inner structural panels
Continental Gasoline fuel supply system, fuel level sensor
Delphi Instrument cluster
Denso Windshield wiper system (single motor and arm)
FAG Rear-wheel bearing
Ficosa Rear-view mirrors, interior mirrors, manual and CVT shifters, washer
system
Freudenberg Engine sealing
GKN Driveshafts
INA Shifting elements
ITW Deltar Outside and inside door handles
Johnson Controls Seating
Mahle Camshafts, spin-on oil filters, fuel filters and air cleaners
Saint-Gobain Glazing
TRW Brake system
Valeo Clutch sets
Vibracoustic Engine mounts
Visteon Air induction system
ZF Friedrichshafen AG Chassis components, including tie rods
Behr HVAC for the luxury version

1.5 TATA NANO DESCRIPTION

In terms of comfort and convenience Tata Nano is a car been manufactured keeping
inmindthat the car compartment offers enough space to the customer for his head and for his
legs. Considering the fuel economy the vehicle (Tata Nano) has a very efficient engine,
whichoffers rear-wheel drive to the car all in aluminum with its two cylinders being a 623 cc
displacement offering with a power of 33ps. The engine is a multi-fuel injection petrol type.
It is the first time the car is using a two-cylinder gasoline engine along with a balance shaft
added to it. Design of Tata Nano is such that it maintains the weight under control, all there
by maximizing the car's performance in terms of energy consumed, all in terms it delivers
high fuel efficiency. As like other cars Tata Nano is also equipped with many safety
requirements. Tata Nano has a steel body, made to provide a strong passenger compartment
with many safety features which includes crumple zones, intrusion-resistant doors, seat belts,
strong seats and anchorages, and the rear tailgate glass is attached to the body of the car.
Tubeless tyres provide better control over the road while the vehicle is on the drive, thereby
increasing the safety. The tailpipe emission of Tata Nano is equipped with many regulatory
requirements, these equipped features in the car helps in reduces the pollution. It is estimated
that Tata Nano has pollution level lower than the two-wheelers which are been manufactured
in India. Fuel efficient model of the car proves that it is a car with very less CO2 emissions.

1.6 Tata Nano Models

Tata Nano Models Tata Nano Std BSII

It is the base variant of Tata Nano which is BSII

emission norms compliant and it comes without few
standard features like AC, Power Windows, Central

Tata Nano Std BSIII

Locking, Body Colored Bumpers, etc.

It offers the same features that Tata Nano Std BSII
carries only the difference is that it is BSIII

Tata Nano Cx BSII

compliant.
The additional feature that this variant offers is Air

Tata Nano Cx BSIII

Conditioner, tinted glasses digital fuel gauges etc.

This variant offers same features that Tata Nano Cx
BSII carries only the difference is that it is BSIII

Tata Nano Lx BSIII

compliant.
It is the top end variant of Tata Nano and the
additional feature that this variant offers is Power
Steering, Central Locking, Body Colored Bumpers,
Front and Rear Fog Lamps, etc.

CHAPTER - 2
2.1 TECHNICAL SPECIFICATIONS

Overall Length

3099 mm

Overall Width

1495 mm (Without ORVMs)

Overall Height

1652 mm

Wheelbase

2230 mm

Ground clearance

180 mm

Minimum Turning Circle Radius

4m

Seating Capacity

4 person

Fuel Tank Capacity

15 Litres

Kerb Weight Nano

Nano CX
Nano LX

Boot Space

600 kg
615 kg
635 kg
- With rear seat folded: 500 Litres
- Without rear seat folded: 80 Litres

2.2 ENGINE AND TRANSMISSION

10

Engine Type

624 cc, 2 cylinder, MPFI

Maximum Engine Output

38 PS @ 5500 250 rpm

Maximum Torque

51 Nm @ 4000 500 rpm

Maximum Speed

105 kmph

Gradeability

30%

Transmission
No. of Gears

Synchromesh on all forward gears,

Sliding mesh on reverse gear with overdrive on 4th gear
4 Forward + 1 Reverse

2.3 SUSPENSION

Front Independent, Lower Wishbone, McPherson Strut with gas filled dampers and anti-roll bar

11

Rear

Independent, Semi Trailing arm with coil spring & gas filled shock absorbers

BRAKES

Brake Type

Dual Circuit, Vertical Split operated by tandem master cylinder with vacuum booster

Front

180 mm diameter Drum Brake

Rear

180 mm diameter Drum Brake

12

2.4 WHEELS AND TYRES

Tyre Type

Radial & Tubeless

Front Tyre size

135/70 R12

Rear Tyre size

155/65 R12

Spare Tyre size

135/70 R12

Wheels

4 B x 12

13

CHAPTER - 3
3.1 INTRODUCTION TO THE NEW PRODUCT
DEVELOPMENT:

Tata Managing Director Karl Slym insists the company wont kill the tiny, egg-shaped
car. It will soon add improvements to breathe new life into the model, a move that would
ultimately bring its price closer to those of rivals. The Nanos marketing didnt jell with
anybody, Slym says. Scooter drivers werent attracted because others dont think Im
buying a car, they think Im buying something between a two-wheeler and a car. Anyone
who had a car didnt want to buy it, because it was supposed to be a two-wheeler
replacement.

Slym points to the Pixel, a Nano-based concept vehicle Tata first showed in 2011, as an
example of how the brand could evolve. The two-door hatchback takes the skeleton of the
Nano and adds innovative doors that rotate up rather than open out, automatic
transmission, and a diesel engine. Yet Haritha Saranga, an associate professor at the
Indian Institute of Management in Bangalore, says in an e-mail that just creating
variations is not going to help increase sales. It is important to change the current image
of Nano as a cheap car.

14

Before the introduction of a product into the market, it goes through several stages of
development. The stages of the product development includes the following

Idea Generation

Idea Screening

Concept Testing

Development Market Strategy

Business Analysis

Total Sales Estimation

Estimation Costs

Profits Product Development

Test Marketing

As far as Nano is concerned, it falls new to the world products in the context that it
has made a history for the cheapest car ever made without compromising on quality. i.e.
best way value analysis. There were many ideas like to make a scooter with two extra
wheels at the back for better stability,
A three wheeled car like a closed auto-rickshaw but the market requirement was a
car, the car should be such that it doesnt convey a message that its just an extension of a
scooter it should be a proper car and likewise should also give the feel of a actual car.
Trying to build a car cheap enough for motorcycle buyers seems to make sense now
but seemed unachievable several years ago when Mr. Ratan Tata, chairman of Tata
Motors had first mentioned his dream of building a one-lakh car in2003 at that time the
whole world thought that this gamble will never work out but ironically the whole world
15

is now talking of small cars as $5,000 or $7,000 after TATA NANO was launched in
2009.

3.2 EXPECTATIONS AND EFFECTS

Expectations created for the car during the run up to its production may have been out of
proportion with its realised success. A 2008 study, by Indian rating agency CRISIL,
thought the Nano would expand the nation's car market by 65%, but, as of late 2012,
news reports have detailed the underwhelming response of the Indian consumer to the
offering; sales in the first two fiscal years after the car's unveiling remained steady at
about 70,000 units although Tata appears intent on maintaining a capacity to produce the
car in much larger quantities, some 250,000 per year, should the need arise.

It was anticipated that its 2009 debut would greatly affect the used car market, and prices
did drop 25-30% prior to the launch. Sales of the Nano's nearest competitor, the Maruti
800, fell by 20% immediately following the unveiling of the Nano. It is unknown if the
Nano has had a lasting effect on the prices of and demand for close substitutes, however.
In July 2012, Tata Group chairman, Ratan Tata, said that the car has immense potential in
the developing world while admitting that early opportunities were wasted due to initial
problems.

16

Price

Announced as the least expensive production car in the world, Tata aimed for a price of
one lakh rupees, or 100,000, which was approximately $2,000 US at the time. Only the
very first customers were able to purchase the car at that price, however, and, as of 2012,
the price for the basic Nano is around 150,000. Increasing material costs may be to
blame for this rapid rise in price.
Compared to the Volkswagen Beetle it has a relatively low price, however. In 1990, a
Beetle from Mexican factories was priced at $5,300, about $9,313 in today's money. The
Ford Model T's initial price was about $850, equivalent to $21,719 today.

Cost-cutting features

Tata Nano engine in trunk that's only accessible from inside as a cost reduction
featureTata Nano dashboard is very simple. CD player and radio on this deluxe model
The car's exterior and interiors were designed at Italy's Institute of Development in
Automotive Engineering. The Nano's design implements many measures that make its
manufacture cheap. The Nano's trunk is only accessible from inside the car, as the rear
hatch does not open.

One windscreen wiper instead of the usual pair (also seen earlier on certain Citroen and
Mercedes models) No power steering, unnecessary due to its light weight Three lug nuts
on the wheels instead of the usual four (also seen on Smart) Only one wing mirror Radio
17

or CD player is optional (the idea picked on some basic car models in North America) No
airbags on any model624cc rear engine has only 2 cylinders (recently implemented in
new Fiat 500, with a surcharge) No air conditioning in base model (as on most basic car
models in Europe and North America) Technical specifications The Nano (2012) is a 38
PS (28 kW; 37 hp) car with a two-cylinder 624 cc rear engine. The car complies with BS4
Indian emission standards and can also meet European emission standards as well. The
development of the Nano had led to 31 Design and 37 Technology patents being filed

Compressed-air engine

Tata Motors signed an agreement in 2007 with a French firm, Motor Development
International, to produce acompressed air car Nano. While the vehicle was supposed to be
able to travel approximately 200 kilometres (120 mi) on $3 US of electricity to compress
the air, Tata's Vice-President of Engineering Systems confirmed in late 2009 that vehicle
range continues to be a problem.

Diesel

A website has speculated that the Nano might be made available with a diesel engine.
Tata motors have not confirmed this but have stated: "As of now there is no Diesel
variant of the Nano. The Nano is only available in a Petrol version."

Electric vehicle

Tata has discussed the possibility of producing an electric version, and while it
showcased an electric vehicle Nano at the 2010 Geneva Motor Show, no such car is
currently on the market.
18

An upscale Nano concept car called the Europa was shown at the 2009 Geneva Motor
Show.

Car fires

There were reports of several fire incidents involving the Nano. The company denied
those were connected to the cars design or its parts and blamed "foreign electrical
equipment" found on top of the exhaust system. The company offered to retrofit the
exhaust and electrical systems but refused to recall the cars. Tata extended the warranty
on the car, including those already sold, from 18 months to four years in early December
2010.

Reception

The Nano has received a tepid reception from Indian consumers. Reasons given have
included that it is still too expensive compared with a motorcycle, which can carry more
people. Also it is identified as the cheapest car, whereas a secondhand car that was more
expensive when new has more social cachet. The fires and other safety issues have also
been nominated.

Place:
Tata Motors has an extensive dealer network covering Indian and International markets.
Wherever you are, there is a Tata Motors Sales and Service dealership close to you. The
channel of distribution, physical location, and dealership method of distribution and sales
is generally adopted. The distribution of vehicle must be in a very systematic way, from
the plant to dealership and to end user. This is not only in India itself but also to the
world-wide dealership.

Promotion:
Tata motors promote their products via Advertising and after sales services.
19

 Enough use of one of the most important element of promotion mix, publicity reduces
the necessity of other promotional devices for Nano.
Publicity as One lakh car by mouth to mouth.
Auto expo 2008,New Delhi & Geneva
Publicity through print & electronic media
For other type of promotional activities, cost factor that is 1 lakh price tag is to be keep in
mind, nano watches, nano T-shirts available in retail clothing stores. Advertising: - TV &
other mass media will be less effective, thus too much money will not be invested in this
regard. Mainly word of mouth advertising will get more emphasis. Internet will be a major
media for advertising.

3.3 INNOVATIONS INCORPORATED IN TATA NANO:

At this moment, a fair amount of information on how the Nano was brought to its
intended price tag without compromising its design brief - 'a proper car'. The report
attempts to study the tactics and policies adopted by Tatas under the enlightened
approach to innovation.

Strategic Innovation:
Some of the innovations that Tata Motors followed during the process of coming out with
Nano were not only concerned with the only the car as the product, but extended itself to
the whole organizational thought process. Starting from the team formation to product
delivery, everything was thought keeping in mind the promise of bringing out a quality
car within a price tag of Rs. 1 lakh that would fulfill the latent demand of the Indian
middle class who could not afford even the lowest priced car at that time.
of product designing and manufacturing technologies. Inline with this, the engineering
team in charge with the designing and production of Nano was very young with the
average age being only 28.
-learn the processes and they were open to take in ideas from their strategic partners also.
During development, the company reinvented and minimized the manufacturing process,

20

brought in innovative product design, and asked

component manufacturers to look at current work and design approaches in a different
perspective to produce logical and simple solutions.
f Indian families who had two wheeled transport, but couldn't afford a four wheel car, and
was based on the company's success in producing the low cost 4 wheeled Ace truck in
May 2005. The company management learnt and improved on the design procedure of
Ace truck and used this know-how to come up with the best design for Tata Nano. Also,
since both the vehicles were similar in their basic design and component requirement,
the supplier base was also easier to be put in place.
unching the petrol and diesel variants of Nano, Tata Motors have not rested on the laurels. They
have taken one step further in coming out with an electric version which enables them to position
it as an environment friendly car of the future. This shows the foresightedness of the management
to sense future demand and also the company culture to continuously innovate and improve.
establish their demographic. Setting the price and working backwards also required a
fundamental shift in the way the car was designed, since many costs are fixed once the design is
set.
that call for continuous improvement.

3.4 CONCEPT TESTING AND DEVELOPMENT

After surveying customers the end result was that people wanted a four wheeler which
was cheap, dependable and strong enough to carry a load of 1 ton additionally four
wheelers also increased the social status of the person who owns it .Four wheels not only
practical appeal but also had a emotional appeal.
Regarding the proposal to have zero production days at Tata Motors Limited, he said,
"We explored the necessary block closure dates in TML in respective manufacturing units
as best required. We will continue to look at specific dates as may be required by the
business environment in the future."
To a question on the current rate of capacity utilisation of passenger cars and commercial

21

vehicles, he said the installed capacity stands at 1.6 million vehicles and the production in
2012-13 stood at 7.73 lakh vehicles at a utilisation of 48 per cent.
On the new products in the commercial vehicles space, Mistry said the Prima range is
coming out with the upgraded cabins, with better fuel efficiency and technologies.
"Multi axles and hybrid bases and the new range of LCV - Ultra range, we are providing
number of value added service to the customers," he said.
MUMBAI: Faced with steep fall in sales of Nano, Tata Motors today said it will
reposition the budget car as `a smart city car' with added features such as power steering,
apart from introducing a CNG version.
"We are now focusing on increasing the features and the perceived value of the Nano
with every subsequent model launch," Tata Group Chairman Cyrus P Mistry told
shareholders at the 68th annual general meeting here.
"We are now focusing on making it a smart city car and targeting the young customers,"
he added.
Despite discounts and other freebies, Tata Motors has not been able to draw in customers
to Nano showrooms and its dedicated Nano plant at Sanand in Gujarat is running much
below even half its capacity.
"We are coming out with power steering options (on Nano), improved interiors and
exteriors and better fuel efficiency," Mistry said.
According to the latest Siam data, market share of Tata Motors dived to 8.9 per cent in
July in the passenger car space, from 11.8 per cent in March, pushing it down to the
fourth slot. For commercial vehicles, the share slipped to 52.9 per cent from 56.1 per cent
during the same period.
In the April-June quarter, Tata Motors' standalone sales declined 14 per cent from a year
earlier, pulling down its annualised manufacturing capacity utilisation to a low 36.2 per
cent, from 47.6 per cent in the fiscal ended March 2013, said a Moody's report dated
August 19. It also warned of credit rating of the company due to the steeply falling
market share and sales volumes.
Mistry also said the company will launch the much-delayed CNG variant of the Nano this
22

year.

Stating that there is a lot Tata Motors can do on service, Mistry said, "We are monitoring
on all the different dimensions and there is scope for improvement in all the dimensions,
in terms of responsiveness to the market, responsiveness on the service side.
"It is not a binary situation, it is a path we are on, it is a continuous journey for us to
improve," he said.
Thus the new product was now to be developed but the following considerations would
have to kept in mind when developing it-

The car should be built on a different platform than conventional ones.

It must be meeting all the safety and regulatory requirements.

It has to be built on a scale which shall be more than double the earlier launches
of similar products and the ramp up must be smooth

The car has to be designed so that it can be exported to other countries as the domestic
demand may not materialize as per projections. There were three main requirement of the
new vehicle: it should be low cost, adhere to the regulatory requirements, and achieve
performance targets such as fuel efficiency and acceleration capacity.
Nearly 500 engineers were involved in the development of the vehicle and everyday they
had meeting so that the decision taking and the problem solving process could be
accelerated. Each engineer represented a different part of the car: engine and
transmission, body, vehicle integration, safety and regulation, and industrial design.
The body of the vehicle had to go under a number of iterations because the Mr. Ratan
Tata wanted that a person whose height is over six feet can also fit into the car without
any discomfort and finally the length of the car had to be increased by 100mm but
eventually. The hard work of designing the car paid off and the designers were successful
in their attempt to design an actual car which did not look shabby and inexpensive but
looked sleek and sophisticated.

23

CHAPTER - 4
4.1 CHALLENGES FACED DURING THE DEVELOPMENT
OF TATA NANO:
After much speculation, Tata Motors announced on May 19, 2006 that it will be
manufacturing Tata Nano from Singur, Bengal. However, within a week protests were started
by a few farmers in the area against the acquisition of their lands by Tata. The cause was
taken up by Mamata Banerjee, the leader of Congress. The situation escalated with Tatas
threatening to pull out and disruption of compensation for farmers who had volunteered to
sell their land by anti-acquisition activists. This was followed by a state-wide strike by
Trinamool Congress in October. The government banned political parties from holding
meetings or processions at Singur and installed a huge police force there. There was
widespread violence in the clashes between the police and the farmers on December 2, 2006.
The Key concerns are

1. Question of Safety
The Nano has an all sheet-metal body made from Japanese and Korean steel, with safety
features such as crumple zones, intrusion-resistant doors, seat-belts, strong seats and
anchorages, and the rear tailgate glass bonded to the body. Tires are tubeless

2. Mass Motorization
As the Nano was conceived and designed around introducing the automobile to a sector of
the population who are currently using eco-friendly bicycles and motorcycles,
environmentalists are concerned that its extraordinarily low price might lead to mass
motorization in countries like India and therefore possibly aggravate pollution as well as

24

increase the demand for oil. The ecology focused German newspaper die tageszeitung feels
that such concerns are "inappropriate"

25

as the Tata Nano has lower emissions compared to the average Volkswagen, and that
developing countries shouldn't be denied the right to motorized mobility when
industrialized countries should be looking to reduce their emissions and usage of cars.
Die Weltre ports that the car conforms to environmental protection, and will have the
lowest emissions in India.
In crowded metropolitan cities like Mumbai, Ratan Tata has conceived a scheme to only
offer the Nano to those individuals who do not have an automobile already. The Nano
will also replace many overloaded and worn-out two-stroke polluting vehicles, both two
and three-wheeled. According to Anumita Roychowdhury, associate director of the
Centre for Science and Environment in New Delhi, "the low-cost cars will be disastrous"
in the current policy and regulatory framework.

3. Used car market effects:

The Nano is alleged to have severely affected the used car market in India, as many
Indians opt to wait for the Nano's release rather than buying used cars, such as the Maruti
800 (a rebadged Suzuki Alto), which is considered as the Nano's nearest competitor. Sales
of new Maruti 800s have dropped by 20%, and used ones by 30% following the unveiling
of the Nano. As one automotive journalist summarizes; People are asking themselves
and uswhy they should pay, say, 250,000 Rupees for a Maruti Alto, when they can
wait and get a brand new Nano for less in a few months time, a car that is actually
bigger.

4. Cases of Fire
There have been 7 cases where the Nano caught fire, with the first three attributed to an
electrical fault in the steering column. Tata Motors has since replaced the OEM supplying
the fire retardant material as well as the steering column assembly. In March 2010, a new
case of a Tata Nano catching fire was reported, in which the car was being delivered from
the dealership to the owner's house. This case is currently under investigation. ~ 43 ~

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5. Competitors
Rival car makers including Bajaj Auto, Fiat, General Motors, Ford Motor, Hyundai and
Toyota Motor have all expressed interest in building small cars in India that are affordable to
more middle-class consumers in emerging markets. The bulk of demand there is for small
cars because people are much more sensitive to fuel prices. Honda and Toyota are leading the
way on so called cleaner gasoline-electric hybrids, and some environmentalists argue getting
prices down on these technologies is where efforts should be concentrated. Inexpensive and
eco-friendly electric-cars like Tara Tiny (which has an engine producing 4 hp compared to
Nano's 33 hp), Oreva Super (both reportedly even cheaper than Tata Nano) and REVA pose
even more significant danger to Nano. There are also rumors of Maruti Suzuki introducing a
lower priced version of Alto to counter Tata Nano.

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Launch

The much publicized Tata Nano CNG, which will be sold with the emax moniker, will be
launched in Indian car market tomorrow. The launch event is being expected to take place
in Ahmedabad and here we have some details of the soon-to-be-launched production spec
Tata Nano emax. It is being said that the dealerships across the country have already
received cars from the first batch of Nano emax CNG.

During its first launch to market in mid 2009, the world was quite skeptical about this
cute car with price quotes almost comparable to a scooter. The Tata Nano is not used or
refurbished, it's totally brand new and best of all, it is a four-seater car. This may be a
little hard to believe, but it's true! Depending on the size of each passenger, the car can fit
up to four people, which is impressive for its compact size.
Take out all the norms of a luxury car that most automobile manufacturers aim at, Tata
Nano is something else. Dubbed as "the People's Car", it is Ratan Tata's dream come true
to provide a low cost, economical family car to the Indian market. Motor bikes and
scooters dominate the streets in India, but the Tata Nano provides a safer option, a fourwheel vehicle that helps protect against the high death toll from bike riders. This can
completely change the social dynamic found over there.
The Tata Nano has three types, Base, CX and LX, ranging from $2,500 to $3,500 in
India, with price variations depending on the city or state it is purchased. The cute car has
four doors and is equipped with a 0.6 liter two-cylinder engine, four speed manual
transmission tucked behind the rear seat to save space. It runs at a maximum speed of
65mph with the 35hp the engine produces. The best thing is that it consumes an average
of 55 miles per gallon per the Automotive Research Association of India.
It's not a race car, obviously, but it's a brilliant innovation to provide affordable vehicle
options for the huge Indian population. For worldwide distribution, it's still on its way to

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be refitted to meet other countries' safety and emission regulations. Prices for Europe and
US may go higher than the basic price it started with at India, but it will still have the
affordable edge over the low-end basic cars being sold today.

The Nano emax CNG was put on display at Horizonext event, which was held in June
this year. Compared to the car shown at the Horizonext, the production spec model gets a:
different color theme for the instrument cluster
larger steering wheel higher seat factory fitted fire extinguisher.

The Nano emax CNG will come equipped with a 8 litres CNG tank, which will be
mounted below the drivers seat and is good for holding approx 6 kgs of CNG. The Nano
emax CNG will automatically switch to using petrol once it runs out of CNG.
The car will go on sale in two variants CX and LX. It is expected that the car would be
almost INR 50000 pricier than the petrol sibling.
Safely expect us to update you with more info about the Tata Nano emax CNG.
The Tata Nano was so popular that they had to sell the first 100,000 on a ticket allotment
for which the people paid for the cars before they were made. They had a more than 45%
growth rate last year. They recently opened a factory in Gujarat to begin 250,000 cars per
year to be achieved in phases. This will allow them to better meet the strong demand for
the Tata Nano.
This car has been a real God send to the people of India with families. Now they can take
the whole family to the nearest town, to visit relatives or any where else they want to go.
This can be done without spending a lot of money for gas. The Tata Nano is a beautiful
car, much prettier than the people's car from Germany, the Volks-wagon. They'll be
making them by the thousands in the next few years, providing lots for their people.

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CHAPTER 5
5.1 RESEARCH METHODOLOGY

In order to prepare the project on project Tata Nano we just took the help of secondary
data. The secondary data provided us the relevant information. The data for tata nano is
collected from the official websites of the TATA company.
The purpose of preparing this project is to gather the information about the TATA Nano
Car. The objective of preparing this project is

To study about TATAs new product TATA NANO.

To study about what made possible for Tata to develop and produce a car for
just
Rs. One lakh.

To study the objectives and target customers of Tatas one lakh car

To study on customers buying behaviour and preferences and views about Tata
Nano by various methods of data collection

To know the challengs face by company

To know pricing ,cost cutting, expectation etc

In order to get answer of above point the following project is prepared

Sample Design:

Sampling design is a plan design to select the appropriate sample in order to

collect the right data so as to achieve research objective. A sample is a part of
universe that can be used as a respondent to survey for the purpose of the
experimentation in order to collect a relevant information to solved a particular
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problem .In this project my friends circle are considered for the purpose of
sampling. The information is collected from them.

Sample Size:

The sampling unit is 30 which are divided as follows

:Number of respondent 27 Age-group 18 35

5.2 DATA COLLECTION PLAN

Data Gathering:
This study involves data collection the both primary research and secondary
research.
Literature Review
The research conducted as a part of our study would include Primary as well as
Secondary research. Primary research would include a survey that would be
conducted in my friends circles. where the responses of them would be recorded
through a designed questionnaire. Secondary research would include various
aspects of company information, history Brand management through Internet.
METHOLODOGY
The research will be carried out in the form of a survey. This will include primary
research in addition to
secondary research as stated below. The survey research method will be descriptive
research design. Each respondent will be interviewed through a Questionnaire. The
sample will be selected by a simple random sampling method. The questionnaire is
also prepared in a such way so that it can give a right information in order to
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achieve a research objectives.

5.3 SURVEY RESULT

When I asked the respondent Do you have tata nano car?
A 15 of them answer yes they have a nano car. Further when I asked reason of
purchasing nano out of 15 a 11 answer a low
When I a sked them a question which module do you prefer?
A 11 like to Tata Nano Lx BSIII out of 4 like Tata Nano Cx BSII
12 does not drive their nano for long routs..
What comes first in your mind when you hear the word tata ?
The 8 of respondent response to car and remaining go with a consultancy . As it
very well know
On a scale of 1 to 5 rate nano on the following parameters
A.
B.
C.
D.

look = A 3.5 rating is given by respondent

safety = it is between a 3-5 given
performance = it is between a 4-5
maintenance = it is between a 3-5

nano would you like to see in feature

The respondent reply they would like to see a nano in future as a safe and luxuries and
with powerful engine
Do you experience any trouble with a tata nano?
Here a 12 of respondent answer in yes they experiment with the problem like doers
closing, engine noise , air conditions , battery problem etc.

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would you like to purchase other companies car instead of nano?

Answer of this question is quit shocking as more than 11 respondent response to yes
they will be ready to go with other company car instead of nano. The number of
loyal customer are very low.
are you satisfied with nano car?
When is Important question asked to the respondent a 10 answer yes.

Recommendation

Since the car had to be built within a cost of Rs. 1 Lac, no conventional design would
work as the costs shall be higher and so the entire car has to be redesigned. The design
has to question the need of each and every component from the point of view of its
necessity of existence and also the minimum requirements of its functionality. Value
Engineering concepts have to be deployed to finalize the minimum requirements.

Its a technology which brings radical change

by introducing new ways of doing things. Technology that is Significantly cheaper than
existing Technology. Much higher performing? Has greater functionality and
Is more convenient to Use. Brings to market a totally different Value proposition than the
one available and can change the Paradigm about a product.

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Conclusion

In the conclusion we can say that Nano has truly lived up to its expectations and shattered
the following myths -

-Cheap means unsafe- physically validated crash test results on 1 vehicle and plansmore
tests in the future

-Rear- engine cars are unsafe- Ferrari, Porsche, VW and Lamborghini do it why cant
Tata?

-The Nano will pollute the planet- 623cc engine produces less CO2 than average small
car.

-The Nano will have no storage space-Sufficient storage space, under the bonnet and over
the rear parcel tray, rear seats fold to dramatically increase storage space.

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QUESTIONAIRE
Q 1 Do you have tata nano car?
Yes
No
If yes what are the reason u purchase it
A. Low price
B. Other
Q 2 which tata nano do you prefer?
A. Tata Nano Std BSIII
B. Tata Nano Cx BSII
C. Tata Nano Cx BSIII
D. Tata Nano Lx BSIII
Q-3 do you drive your nano for long routs?
A. yes
B. no

Q- 4 What comes first in your mind when you hear the word Tata?
A. cars
B. consultancy
C. electricity
D. other

Q-5 On a scale of 1 to 5 rate tata nano on the following parameters

E. look
F. safety
G. performance
H. maintenance

Q -6 nano would you like to see in feature

A.
B.
C.
D.

with more colour

contain quality of luxury car
with more powerful engine
Others
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Q-7 does nano fulfill ur expectations?

A. yes
B. no

Q- 8 Do you experience any troubles with tata nano?

Yes
No
Q-9 if chance given to you would you like to buy other companies car instead of tata
nano?
Yes
No
Q-10 are you satisfied with your tata nano?
Yes
No
(If no mention your suggestion )

Summary
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Summary of Technological Opportunity and Innovation

An Indian firm Tata has launched the Nano people's car, which is the cheapest car in the
world, in January 2008, and the company also led to the other manufacturers revealing
their plans for the cheap car market. Companies like Toyota, Fiat and Ford are also
interested in the production of the cheap cars, and they had announced to invest a huge
amount in India to make a new small, low cost car. The increasing competition, which has
developed because of the large used car market. This has forced car suppliers to lower
their prices and try to develop cheaper cars that can compete with the low cost second
hand vehicles. There are environmentally led legislations, which is forcing the size and
shape of cars to change, the demand and need of the customers are also the one of the
reason behind this.
Rationale Behind the Scene:

Tata's Nano is a result for a variety of reasons. We believe that it is going to

fundamentally change the way the automobile sector functions. And here is why.

Tata Nano is not just about low-cost, but also about high technology.

We also find that the Tata Nano has fundamentally implemented the
'Forget,borrow,learn' model of innovation.

The Tatas realized that for a poor country like India, there was a need of an ultra lowcost product and they offered it by leveraging the power of technology.

The Tata Nano will certainly find big takers in India. However, it can have a market in
the US, as well. If the car is enriched with high technology functions to make it an
intelligent car, many in the US will look forward to own it.

Bibliography
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http://www.tatamotors.com/our_world/press_releases.php?ID=432&action=Pull
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