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Project Study Report
On
“THE STUDY ON PERCEPTION OF PEOPLE ABOUT NANO CAR IN JAIPUR
CITY”
Submitted in partial fulfillment for the
Award of degree of
Master of Business Administration
2008- 2010
Submitted By: - Submitted To:-
HIMANSHU SHARMA Ms. Kavita Gidwani
MBA IV SEM
ST. WILFRED INSTITUTE OF MANAGEMENT & TECHNOLOGY
Jaipur
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The professional training is the internal part of an M.B.A. program. It helps the students
understand practical aspects of Business Management in a better way as a part of my M.B.A.
program at St.Wilfred Institute of management & Technology
“Marketing Research is the systematic and objective identification, collection, analysis
dissemination, and use of information for the purpose of improving decision making related to
identification and solution of problems and opportunity”
“Perception is the process, by which an individual selects, organizes and interprets
information inputs to create a meaningful picture of the world around as”
To be a Master of Business Administration student is a matter of pride because we are in a
field, which helps us to develop from a normal human being into a disciplined, and dedicated
professional. One has to be a good learner to sharper knowledge in the particular field to achieve
and attain the desired goals and heights. I conducted to gain an understanding of what goes in to
mind of the customer about “NANO”. To find the perception of people on “NANO” in the JAIPUR
city, I used research questionnaires as the research and data collection tools. The responses were
collected from 300 respondents from various areas of JAIPUR.
I had learned lot during my Grand Project on perception of people on Tata’s “NANO”, and
hope this will be helpful to find out perception of people on “NANO” car in JAIPUR city.
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In order to make my grand project I acknowledge a special thanks to all those people
without whose supports it would not be possible for me to complete my report.
First of all I really thankful to my St. Wilfred Institute Of Management & Technology
because of them I could achieve the target. I express my sincere thanks to our Directo
Mr.L.N.Gupta sir and my project guide Ms.Kavita Gidwani who had guide to me throughout my
project.
I would also thankful to the TATA MOTORS for giving me this opportunity to work on
“NANO” car in JAIPUR city.
Also I would like to express my inner feeling for all the people for co-operating and helping
me throughout the project.
Last but not the least; I am thankful to my parents and friends who have provided me with
their constant support throughout this project.
HIMANSHU SHARMA
MBA (SEMESTER – IV)
ST.WILFRED INSTITUTE OF MANAGEMENT & TECHNOLOGY
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The grand project study on a “The Study on Perception of people about NANO car in
JAIPUR city” based on customer survey. The main objectives of the project are
To know the perception of people about “NANO” car in JAIPUR city.
To know about awareness of products.
To know about factors affecting purchase decision of “NANO”.
To know acceptance level of people in JAIPUR City.
To know how purchase decision of “NANO”.varies from different Incomegroup.
For this project customer research was carried out at various area of JAIPUR City. In thiscustomer research, I learnt about different types of customer’s perception about TATA”s NANO in
JAIPUR City.
At the end it is submitted to “ST.WILFRED INSTITUTE OF MANAGEMENT &TECHNOLOGY”
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Sr. NO. CONTENTS PAGE NO.
1. INDUSTRY PROFILE 10
2. COMPANY PROFILE 13
3. THEORITICAL BACKGROUND 31
4. IDENTIFICATION OF THE STUDY 73
5.1 MARKETING RESEARCH PROBLEM 73
5.2 SCOPE OF THE STUDY 73
5.3 OBJECTIVE OF THE STUDY 73
5.4 LIMITATION OF THE STUDY 73
5. RESEARCH METHODOLOGY 74
6. INTERPRETATION AND ANALYSIS 77
7. INTERPRETATION OF RESULTS 99
8. CONCLUSION 101
9 ANNEXURE 102
9.1 BIBLIOGRAPHY 103
9.2 APPENDICES 104
LIST OF TABLES & GRAPHS
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TABLE/GRAPH NO.
ASPECT
1. SHOWING GENDER CATEGORY
2. SOWING AGE GROUP OF RESPONDENTS.
3. SHOWING INCOME GROUP OF RESPONDENTS
4. SHOWING OCCUPATION LEVEL OF RESPONDENTS.
5. SHOWING NO OF RESPODENTS WHO ARE HAVING VEHICLE OR WHO DONOT HAVE IT.
6. SHOWING PREFERENCE FOR RS. 1 LAKH CAR
7. SHOWING NO. OF RESPONDENTS WHO ARE AWARE ABOUT “NANO”
8. SHOWING PREFERENCE OF THE RESPONDENTS ABOUT “NANO”
9. SHOWING NO. OF RESPONDENTS WHO PLAN TO BUY “NANO” WITHIN 1TO 2 YEAR
10. SHOWING THE NO. OF RESPONDENT’S PREFERENCE ABOUT MODEL OFTHE “NANO”
11. SHOWING OPINION FOR “NANO’S” MILEAGE
12. SHOWING ATTRIBUTES PREFERENCE GIVEN BY RESPONDENTS WHILEPURCHASING “NANO”
12.1 BRAND NAME12.2 AFFORDABILITY
12.3 SHAP/DESIGN
12.4 SAFETY
12.5 COMFORT
13. SHOWING THE PREFERENCE OF THE RESPONDENTS ON “NANO”COMPARE TO SECOND HAND CAR
14. SHOWING HOW PURCHASE DECISION OF “NANO” WILL AFFECT TORESPONDENTS STATUS
15. SHOWING NO. OF RESPONDENTS WHO BELIEVE “NANO” AS A DREAM
CAR.
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CHAPTER: 1
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TATA GROUP PROFILE:
The Tata Group comprises 98 operating companies in seven business sectors: information
systems and communications; engineering; materials; services; energy; consumer products; and
chemicals. The Group was founded by Jamsetji Tata in the mid 19th century, a period when India
had just set out on the road to gaining independence from British rule. Consequently, Jamsetji Tata
and those who followed him aligned business opportunities with the objective of nation building
This approach remains enshrined in the Group's ethos to this day.
The Tata Group is one of India's largest and most respected business conglomerates, with
revenues in 2006-07 of $28.8 billion (Rs129,994 crore), the equivalent of about 3.2 per cent of the
country's GDP, and a market capitalization of $66.9 billion as on February 21, 2008. Tatacompanies together employ some 289,500 people. The Group's 27 publicly listed enterprises
among them stand out names such as Tata Steel, Tata Consultancy Services, Tata Motors and
Tata Tea have a combined market capitalization that is the highest among Indian business houses
in the private sector, and a shareholder base of over 2.9 million. The Tata Group has operations in
more than 80 countries across six continents, and its companies export products and services to
85 countries.
The Tata family of companies shares a set of five core values: integrity, understanding
excellence, unity and responsibility. These values, which have been part of the Group's beliefs and
convictions from its earliest days, continue to guide and drive the business decisions of Tata
companies. The Group and its enterprises have been steadfast and distinctive in their adherence
to business ethics and their commitment to corporate social responsibility. This is a legacy that has
earned the Group the trust of many millions of stakeholders in a measure few business houses
anywhere in the world can match.
Values and purpose:
Leadership with trust
Purpose
At the Tata Group our purpose is to improve the quality of life of the communities we serve
We do this through leadership in sectors of national economic significance, to which the Group
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brings a unique set of capabilities. This requires us to grow aggressively in focused areas of
business.
Our heritage of returning to society what we earn evokes trust among consumers
employees, shareholders and the community. This heritage is being continuously enriched by the
formalization of the high standards of behavior expected from employees and companies.
The Tata name is a unique asset representing leadership with trust. Leveraging this asset to
enhance Group synergy and becoming globally competitive is the route to sustained growth and
long-term success.
Five core values
The Tata Group has always sought to be a value-driven organization. These values
continue to direct the Group's growth and businesses. The five core Tata values underpinning the
way we do business are:
Integrity:We must conduct our business fairly, with honesty and transparency. Everything we do
must stand the test of public scrutiny.
Understanding:We must be caring, show respect, compassion and humanity for our colleagues and
customers around the world, and always work for the benefit of the communities we serve.
Excellence:We must constantly strive to achieve the highest possible standards in our day-to-day work
and in the quality of the goods and services we provide.
Unity:We must work cohesively with our colleagues across the Group and with our customers and
partners around the world, building strong relationships based on tolerance, understanding and
mutual cooperation.
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Responsibility:We must continue to be responsible, sensitive to the countries, communities and
environments in which we work, always ensuring that what comes from the people goes back to
the people many times over.
A saga of vision, commitment and fortitude:
As much an institution as it is a business conglomerate, the Tata Group is unique in more
ways than one. Established by Jamsetji Tata in the second half of the 19th century, the Group has
grown into one of India's biggest and most respected business organization, thanks in no smal
part to its entrepreneurial vision, its commitment to ideals that put people before profits, and its
fortitude in the face of adversity.
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Family pride
The Tata family of enterprises comprises 98 companies in seven business sectors. This
section lists all these companies under the sectors in which they operate, besides the two promoter
companies of the Group. Visitors can, by clicking on the relevant links, get a profile of individual
companies, their subsidiaries (if any), their products and services, contact details, etc.
THE SEVEN BUSINESS SECTORS
Engineering (Automotive):
Tata Auto Comp Systems:Subsidiaries / associates / joint ventures: International Automotive, Knorr Bremse
Systems for Commercial Vehicles, Tata Auto Comp GY Batteries, TACO Engineering, TACO
Faurecia Design Centre, TACO Hendrickson Suspension Systems, TACO Interiors and Plastics
Division, TacoKunststofftechnik, TACO MobiApps Telematics, TACO Supply Chain Management
TACO Tooling, TACO Visteon Engineering Center , Tata Ficosa Automotive Systems, Tata
Johnson Controls Automotive, Tata Toyo Radiator , Tata Yazaki Auto Comp, TC Springs, Technica
Stampings Automotive.
Tata Motors:
Subsidiaries / associates / joint ventures: Concorde Motors, HV Axels, HV
Transmissions, Nita Company, TAL Manufacturing Solutions, Tata Cummins, Tata Daewoo
Commercial Vehicles Company, Tata Engineering Services, Tata Precision Industries, Tata
Technologies, Telco Construction Equipment.
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ENGINEERING SERVICES
Tata Projects, TCE Consulting Engineers, Voltas
ENGINEERING PRODUCTS
TAL Manufacturing Solutions, Telco Construction Equipment Company, TRF
MATERIALS:
COMPOSITES
Tata Advanced Materials
METALS
Tata Steel :
Subsidiaries / associates / joint ventures: Hooghly Met Coke and Power Company
Jamshedpur Injection Powder (Jamipol), Jamshedpur Utility and Service Company Limited
(JUSCO), Lanka Special Steel, mjunction services, NatSteel, Sila Eastern Company, Tata Blue
Scope Steel, Tata Metallic, Tata Pigments, Tata Refractories, Tata Ryerson, Tata Sponge Iron
Tata Steel (Thailand), Tata Steel KZN, Tayo Rolls, The Dhamra Port Company, The Indian Stee
and Wire Products, The Tinplate Company of India, TM International Logistics.
ENERGY:
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Subsidiaries / associates / joint ventures: Taj Air , Roots Corporation (Ginger Hotels)
THDC
Tata Realty and Infrastructure
FINANCIAL SERVICES
Tata AIG General Insurance, Tata AIG Life Insurance, Tata Asset Management Tata Capital, Tata
Financial Services, Tata Investment Corporation
OTHER SERVICES
Tata Quality Management Services, Tata Services, Tata Strategic Management Group
CONSUMER PRODUCTS:
Infiniti Retail
Tata Tea
Subsidiaries / associates / joint ventures: Tetley Group, Tata Coffee, Tata Tetley, Tata
Tea Inc.
Tata Ceramics
Tata McGraw Hill Publishing Company
Titan Industries
Trent
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INFORMATION SYSTEMS AND COMMUNICATIONS:
INFORMATION SYSTEMS
Nelito Systems
Tata Consultancy Services
Subsidiaries / associates / joint ventures: APONLINE, Airline Financial Suppor
Services, Aviation Software Development Consultancy, CMC, CMC Americas Inc, Conscripti
HOTV, Tata America International Corporation, WTI Advanced Technology.
Tata Elxsi
SerWizSol
Tata Interactive Systems
Tata Technologies
COMMUNICATIONS
Tata Sky
Tata Teleservices
Subsidiaries / associates / joint ventures: Tata Teleservices (Maharashtra)
Tata Communications
Tata net
INDUSTRIAL AUTOMATION
Nelco
Subsidiaries / associates / joint ventures: Tatanet
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CHAPTER: 2
TATA MOTORS PROFILE:
Tata Motors Limited is India's largest automobile company, with revenues of Rs. 32,426
crores (USD 7.2 billion) in 2006-07. It is the leader by far in commercial vehicles in each segment
and the second largest in the passenger vehicles market with winning products in the compact
midsize car and utility vehicle segments. The company is the world's fifth largest medium and
heavy commercial vehicle manufacturer, and the world's second largest medium and heavy bus
manufacturer.
The company's 22,000 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." Tata
Motors helps its employees realize their potential through innovative HR practices. The company's
goal is to empower and provide employees with dynamic career paths in congruence with
corporate objectives. All-round potential development and performance improvement is ensured by
regular in-house and external training.
The company has won several awards recognizing its training programs. 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 is spread across India - Jamshedpur (Jharkhand) in the east, Pune (Maharashtra) in the
west, and in the north in Lucknow (Uttar Pradesh) and Pantnagar (Uttarakhand). A new plant is
being set up in Singur (close to Kolkata in West Bengal) to manufacture the company's small car.
The nation-wide dealership, sales, services and spare parts network comprises over 2,000 touch
points. The company also has a strong auto finance operation, TML Financial Services Limited
supporting customers to purchase Tata Motors vehicles.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. In 2004, it acquired the Daewoo Commercial
Vehicles Company, Korea's second largest truck maker. The rechristened Tata Daewoo
Commercial Vehicles Company has launched several new products in the Korean market, while17
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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, with
an option to acquire the remaining stake as well. Hispano's presence is being expanded in other
markets.
In 2006, it formed a joint venture with the Brazil-based Marcopolo, a global leader in Body-
building for buses and coaches to manufacture fully-built buses and coaches for India and select
international markets. Tata Motors also entered into a joint venture in 2006 with Thonbur
Automotive Assembly Plant Company of Thailand to manufacture and market the company's
pickup vehicles in Thailand. In 2006, Tata Motors and Fiat Auto formed an industrial joint venture
at Ranjangaon (near Pune in Maharashtra, India) to produce both Fiat and Tata cars and Fiat
power trains for the Indian and overseas markets; Tata Motors already distributes and markets Fia
branded cars in India. In 2007, Tata Motors and Fiat Auto entered into an agreement for a Tata
license to build a pick-up vehicle bearing the Fiat nameplate at Fiat Group Automobiles' Plant a
Cordoba, Argentina. The pick-up will be sold in South and Central America and select European
markets.
These linkages will further extend Tata Motors' international footprint, established through
exports since 1961. While currently about 18% of its revenues are from international business, thecompany's objective is to expand its international business, both through organic and inorganic
growth routes. The company's commercial and passenger vehicles are already being marketed in
several countries in Europe, Africa, the Middle East, Australia, South East Asia and South Asia. It
has assembly operations in Malaysia, Kenya, Bangladesh, Ukraine, Russia and Senegal. The
foundation of the company’s growth is a deep understanding of economic stimuli and customer
needs, and the ability to translate them into customer-desired offerings through leading edge R&D.
The R&D establishment includes a team of 1400 scientists and engineers. The company's
Engineering Research Centre was established in 1966, and has facilities in Pune, Jamshedpur and
Lucknow. The ERC has enabled pioneering technologies and products. It was Tata Motors, which
developed the first indigenously developed Light Commercial Vehicle, India's first Sports Utility
Vehicle and, in 1998, the Tata Indica, India's first fully indigenous passenger car. Within two years
of launch, Tata Indica became India's largest selling car in its segment. The ERC in Pune, among
whose facilities are India's only certified crash-test facility and hemi-anechoic chamber for testing
of noise and vibration, has received several awards from the Government of India. Some of the
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more prominent amongst them are the National Award for Research and Development Efforts in
Industry in the Mechanical Engineering Industries sector in 1999, the National Award fo
Successful Commercialization of Indigenous Technology by an Industrial Concern in 2000, and the
CSIR Diamond Jubilee Technology Award in 2004.
The company set up the Tata Motors European Technical Centre (TMETC) in 2005 in the
UK. TMETC is engaged in design engineering and development of products, supporting Tata
Motors' skill sets. Tata Daewoo Commercial Vehicle Company and Hispano Carrocera also have
R&D establishments at Gunsan in South Korea and Zaragoza in Spain. The pace of new product
development has quickened through an organisation-wide structured New Product Introduction
(NPI) process. The process with its formal structure for introducing new vehicles in the market
brings in greater discipline in project execution.
The NPI process helped Tata Motors create a new segment, in 2005, by launching the Tata
Ace, India’s first indigenously developed mini-truck. The years to come will see the introduction of
several other innovative vehicles, all rooted in emerging customer needs. Besides produc
development, R&D is also focusing on environment-friendly technologies in emissions and
alternative fuels.
Through its subsidiaries, the company is engaged in engineering and automotive solutionsconstruction equipment manufacturing, automotive vehicle components manufacturing and supply
chain activities, machine tools and factory automation solutions, high-precision tooling and plastic
and electronic components for automotive and computer applications, and automotive retailing and
service operations.
True to the tradition of the Tata Group, Tata Motors is committed in letter and spirit to
Corporate Social Responsibility. It is a signatory to the United Nations Global Compact, and is
engaged in community and social initiatives on labor and environment standards in compliance
with the principles of the Global Compact. In accordance with this, it plays an active role in
community development, serving rural communities adjacent to its manufacturing locations. With
the foundation of its rich heritage, Tata Motors today is etching a refulgent future.
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Milestones since inception:
It has been a long and accelerated journey for Tata Motors, India's leading automobile
manufacturer. Some significant milestones in the company's journey towards excellence and
leadership:
1945: Tata Engineering and Locomotive Co. Ltd. was established to manufacture
locomotives and other engineering products.
1948: Steam road roller introduced in collaboration with Marshall Sons (UK).
1954: Collaboration with Daimler Benz AG, West Germany, For manufacture of medium
commercial vehicles. The First vehicle rolled out within 6 months of the contract.
1959: Research and Development Centre set up at Jamshedpur.
1961: Exports begin with the first truck being shipped to Ceylon, now Sri Lanka.
1966: Setting up of the Engineering Research Centre at Pune to provide impetus to
automobile Research and Development.
1971: Introduction of DI engines.
1977: First commercial vehicle manufactured in Pune.
1983: Manufacture of Heavy Commercial Vehicle commences.
1985: First hydraulic excavator produced with Hitachi collaboration.
1986: Production of first light commercial vehicle, Tata 407, indigenously designed,
followed by Tata 608.
1989: Introduction of the Tata mobile 206 - 3rd LCV model.
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1991: Launch of the 1st indigenous passenger car Tata Sierra.TAC 20 crane produced.
One millionth vehicle rolled out.
1992: Launch of the Tata Estate.
1993: Joint venture agreement signed with Cummins Engine Co. Inc. for the
manufacture of high horsepower and emission friendly diesel engines.
1994: Launch of Tata Sumo - the multi utility vehicle. Launch of LPT 709 - a full forward
control, light commercial vehicle. Joint venture agreement signed with M/s Daimler - Benz /
Mercedes - Benz For manufacture of Mercedes Benz passenger cars in India.Joint venture
agreement signed with Tata Holset Ltd., UK for manufacturing turbochargers to be used on
Cummins engines.
1995: Mercedes Benz car E220 launched.
1996: Tata Sumo deluxe launched.
1997: Tata Sierra Turbo launched. 100,000th Tata Sumo rolled out.
1998: Tata Safari - India's first sports utility vehicle launched. 2 millionth vehicles rolled
out. Indica, India's first fully indigenous passenger car launched.
1999: 115,000 bookings for Indica registered against full payment within a week.
Commercial production of Indica commences in full swing.
2000: First consignment of 160 Indicas shipped to Malta. Indica with Bharat Stage 2 (Euro
II) compliant diesel engine launched. Utility vehicles with Bharat 2 (Euro II) compliant engine
launched. Indica 2000 (Euro II) with multi point fuel injection petrol engine launched. Launch of
CNG buses. Launch of 1109 vehicle - Intermediate commercial vehicle.
2001: Indica V2 launched - 2nd generation Indica. 100,000th Indica wheeled out. Launch
of CNG Indica. Launch of the Tata Safari EX Indica V2 becomes India's number one car in its
segment.
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2002: Unveiling of the Tata Sedan at Auto Expo 2002. Petrol version of Indica V2
launched. Launch of the EX series in Commercial vehicles. Launch of the Tata 207 DI.
2,00,000th Indica rolled out. 5,00,000th passenger vehicle rolled out.Launch of the Tata Sumo'+'
Series Launch of the Tata Indigo. Tata Engineering signed a product agreement with MG Rover
of the UK.
2003: Launch of the Tata Safari Limited Edition.The Tata Indigo Station Wagon unveiled at
the Geneva Motor Show. On 29th July, J. R. D. Tata's birth anniversary, Tata Engineering
becomes Tata Motors Limited. 3 millionth vehicles produced. First City Rover rolled out 135 PS
Tata Safari EXi Petrol launched Tata SFC 407 EX Turbo launched.
2004: Tata Motors unveils new product range at Auto Expo '04. New Tata Indica V2
launched. Tata Motors and Daewoo Commercial Vehicle Co. Ltd. sign investment agreement
Indigo Advent unveiled at Geneva Motor Show Tata Motors completes acquisition of Daewoo
Commercial Vehicle Company Tata LPT 909 EX launched Tata Daewoo Commercial Vehicle
Co. Ltd. (TDCV) launches the heavy duty truck 'NOVUS' , in Korea Sumo Victa launched Indigo
Marina launched. Tata Motors lists on the NYSE
2005: Tata Motors rolls out the 500,000th Passenger Car from its Car Plant Facility in
Pune. The Tata Xover unveiled at the 75th Geneva Motor Show Branded buses and coaches -Starbus and Globus – launched. Tata Motors acquires 21% stake in Hispano Carrocera SA. Tata
Ace, India's first mini truck launched Tata Motors wins JRD QV award for business excellence.
The power packed Safari Dicor is launched Introduction of Indigo SX series - luxury variant of
Tata Indigo Tata Motors launches Indica V2 Turbo Diesel. One millionth passenger car produced
and sold Inauguration of new factory at Jamshedpur for Novus Tata TL 4X4, India's first Sports
Utility Truck(SUT) is launched Launch of Tata Novus Launch of Novus range of medium trucks
in Korea, by Tata Daewoo Commercial Vehicle Co. (TDCV)
2006: Tata Motors vehicle sales in India cross four million mark Tata Motors unveils new
long wheel base premium Indigo & X-over concept at Auto Expo 2006. Indica V2 Xeta launched
Passenger Vehicle sales in India cross one-million mark Tata Motors and Marcopolo, Brazil,
announce joint venture to manufacture fully built buses & coaches for India & markets abroad
Tata Motors first plant for small car to come up in West Bengal Tata Motors extends CNG
options on its hatchback and estate range TDCV develops South Korea's first LNG-Powered
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Tractor- Trailer Tata Motors and Fiat Group announce three additional cooperation agreements
Tata Motors introduces a new Indigo range 2007: Tata Motors launches the long wheel base
Indigo XL, India's first stretch limousine.
Management:
Board of Directors:
Mr. Ratan N Tata (Chairman)
Mr. N A Soonawala
Dr. J J Irani
Mr. V R Mehta
Mr. R Gopalakrishnan
Mr. Nusli N Wadia
Mr. S M Palia Dr. R A Mashelkar
Mr. Ravi Kant
Mr. P M Telang
Senior Management:
Mr. Ravi Kant : Managing Director
Mr. P M Telang : Executive Director
Mr. Rajive Dube : President (Passenger Cars)
Mr. C Ramkrishnan : Chief Financial Officer
Mr. P Y Gurav : Vice President (Corporate Finance-Accounts and Taxation)
Dr. S J Tambe : Vice President (Human Resource)
Mr. Zackria Sait : Vice President (Technical Services)
Mr. A M Mankad : Head (Car Plant)
Mr. S B Borwankar : Head (Jamshedpur Plant)
Mr. S Krishnan : Vice President (Commercial-PCBU)
Mr. Ravi Pisharody : Vice President (Sales & Marketing)
Mr. H K Sethna : Company Secretary
Corporate Communications
Mr. Debasis Ray Tel: 022 – 66657613 : Head - Corporate Communications
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CHAIRMAN’S PROFILE
Mr. Ratan N Tata (Chairman)
Heading the Tata Group since 1991, Ratan N Tata is the Chairman of Tata Sons, holding
company of the Tata Group, and major Group companies including, Tata Motors, Tata Steel,
Tata Consultancy Services, Tata Power, Tata Tea, Tata Chemicals, Indian Hotels, TataTeleservices and Tata Auto Comp. He is also Chairman of two of the largest private sector
promoted philanthropic trusts in India. During his tenure, the Group has further expanded its
global reach, with its revenues growing over six fold to Rs 97,000 crore ($21.9 billion).
Mr. Tata joined the Tata Group in December 1962. After serving in various companies, he
was appointed the Director-in-Charge of The National Radio & Heading the Tata Group since
1991, Ratan N Tata is the Chairman of Tata Sons, holding company of the Tata Group, and
major Group companies including, Tata Motors, Tata Steel, Tata Consultancy Services, Tata
Power, Tata Tea, Tata Chemicals, Indian Hotels, Tata Teleservices and Tata Auto Comp. He is
also Chairman of two of the largest private sector promoted philanthropic trusts in India. During
his tenure, the Group has further expanded its global reach, with its revenues growing over six
fold to Rs. 97,000 crore ($21.9 billion).
Mr. Tata joined the Tata Group in December 1962. After serving in various companies, he
was appointed the Director-in-Charge of the National Radio & Electronics Company Limited
(Nelco) in 1971. In 1981, he was named Chairman of Tata Industries, the Group's other holding
company, where he was responsible for transforming it into the Group's strategy think-tank and a
promoter of new ventures in high-technology businesses.
He is associated with various organizations in India and abroad in varying capacities,
some of which are:
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Chairman, government of India's Investment Commission
Member, Prime Minister's Council on Trade and Industry
Member, National Hydrogen Energy Board
Member, National Manufacturing Competitiveness
Competitiveness Council , Serving on the International Investment Council set up by the
president of the Republic of South Africa
Serving the International Business Advisory Council of the British government to advise
the chancellor of the exchequer
Member, International Advisory Council of Singapore's Economic Development Board
Member, Asia-Pacific Advisory Committee to the board of directors of the New York Stock
Exchange
Member, international advisory boards of the Mitsubishi Corporation, the American
International
Group and JP Morgan Chase
President, court of the Indian Institute of Science, Bangalore
Chairman, council of management, Tata Institute of Fundamental Research, Mumbai
Member, board of trustees of the Rand Corporation, Cornell University and University of
Southern California, and the Foundation Board of the Ohio State University
Chair, advisory board of RAND's Center for Asia Pacific Policy
Member, Global Business Council on HIV / AIDS and the programme board of the Bill &Melinda Gates Foundation's India AIDS initiative
Mr. Tata received a Bachelor of Science degree in architecture from Cornell University in
1962. He worked briefly with Jones and Emmons in Los Angeles, California, before returning to
India in late 1962. He completed the Advanced Management Program at Harvard Business
School in 1975.
The government of India honored Mr. Tata with one of its highest civilian awards, the
Padma Bhushan, on Republic Day, January 26, 2000. He has also been conferred an honorary
doctorate in business administration by the Ohio State University, an honorary doctorate in
technology by the Asian Institute of Technology, Bangkok, and and honorary doctorate in
science by the University of Warwick.
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Manufacturing:
Tata Motors owes its leading position in the Indian automobile industry to its strong focus
on indigenization. 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 in the West and Lucknow in the North.
Jamshedpur :
Established in1945, the Jamshedpur unit was the company's first unit and is spread over
an area of 822 acres. It consists of 4 major divisions - Truck Factory, Engine Factory, Cab &Cowl Factories, and the Novus. Engineering Division, which has one of the most versatile tool
making facilities in the Indian sub-continent.
Lucknow:
Tata Motors Lucknow is one of the youngest production facilities among all the Tata
Motors locations and was established in 1992 to meet the demand for Commercial Vehicles in
the Indian market.
Uttarakhand
The company has set up a plant for its mini-truck, Ace, at Pant Nagar in Uttarakhand. The
plant will begin commercial production during the course of the year.
Research:
Research & Development:
Research provides the much-needed inspiration for the birth of new ideas, which in turn
breathes new life into products. World-class automotive research and development are key
factors that contribute to the leadership of the Company.
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Engineering Research Centre (ERC):
The Research Centre at Jamshedpur regularly upgrades components and aggregates. A
well-equipped torture track enables rigorous and exhaustive testing of modifications before they
are used as regular fitments.
Safety (CRASH TEST FACILITY):
For Tata Motors, safety is of paramount importance. This avenue provides no room for the
slightest margin of error. Tata Motors ERC is the only high-tech facility in India to evaluate the
degree of passenger safety in the event of any high-speed impact. Through a special crash test
facility. Different types of accidents are simulated; the results analyzed, and put to use in the
development of a vehicle that satisfies stringent international safety norms. Special high-speed
cameras record test crashes at the rate of 1000 frames per second. An accident, for instance, at
the speed of 50 kilometers per hour, lasts one eighth of a second. Thus, 125 frames recorded by
these cameras are available for study with the completion of each individual test.
Minimizing Noise (ANECHOIC CHAMBER):
Anechoic chamber is a highly sophisticated noise and vibration laboratory, the nerve
centre of which is a vast chamber lined with 88,000 cones projecting at various angles from the
walls and ceiling. It is one of its kinds in India and is developed completely with in-house
facilities.
Designing and Styling (CAD CENTRE):
The CAD centre is equipped with 53 state-of-the-art CAD stations and the latest software.
The CAD centre is a vital organ of ERC's Cab Design Section. CAD designing involves
development of vehicle specifications, styling interiors and exteriors, reviewing the styling from
the engineering and aesthetic points of view, virtual prototyping to check for design acceptability
and feasibility of manufacture.
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AWARDS:
PCBU bags Handa Golden Key Award…
Tata Motors receives Uptime Champion Award 2007.
Aggregates Business, CVBU, bags ‘Best Supplier Award’ from ECEL.
'NDTV Profit' Business Leadership Award...
Tata Motors bags National Award for Excellence in Cost Management...
Tata Motors' TRAKIT bags silver award for 'Excellence in Design'...
Tata Motors Pune - CVBU has bagged the "Golden Peacock National Quality Aw...
Tata Motors was awarded four prestigious honors, at the 'CNBC TV18- Auto car.
Tata Motors chosen as India's Most Trusted Brand in Cars...
Business today selects Mr. P.P. Kadle as India's Best CFO in 2005...
Pune Foundry Division bags prestigious Green Foundry Award...
Tata Motors is 'Commercial Vehicle Manufacturer of the Year'...
ACE bags 'Best Commercial Vehicle Design' at the BBC-Top Gear Awards....
Tata Motors bags the prestigious' CII-EXIM Bank award' for business excellence...
'Car Maker of the Year' Award for Tata Motors.
Tata Motors is 'Commercial Vehicle Manufacturer of the Year'
'CFO of the Year Award 2004' awarded to Mr. Praveen P Kadle, Executive Director
Tata Motors wins 'Golden Peacock Award' for Corporate Social Responsibility.Tata Motors CVBU Pune wins National Energy Award.
Tata Motors - Jamshedpur wins 'Energy Efficient Unit Award'.
Tata Motors wins the first CSIR Diamond Jubilee Technology Award.
Tata Motors Jamshedpur & Lucknow win awards...
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CHAPTER: 3
The Next People's Car:
Tata Motors' plans would produce, in real terms, by far the cheapest car ever made.
An Indian car may soon earn a parking place in history alongside Ford's Model T, Volkswagen's
Beetle and the British Motor Corp.'s Mini, all of which put a set of wheels within reach of millions
of customers after they rolled onto the scene. Tata Motors is developing a car it aims to sell for
about $2,500 the cheapest, by far ever made.
# Source :(NYSE: TTM - news - people)
There is a lot riding on its small wheels. If the yet-to-be-named car is a success when it
goes on sale next year, it would herald the emergence of Tata Motors on the global auto scene,
mark the advent of India as a global center for small-car production and represent a victory for
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those who advocate making cheap goods for potential customers at the "bottom of the pyramid"
in emerging markets. Most of all, it would give millions of people now relegated to lesser means
of transportation the chance to drive cars.
It is a hugely ambitious project rivals have called it impossible for any company. But it is
audacious for one that hadn’t even built cars a decade ago.
For decades Tata Motors has been India's largest commercial vehicle maker the Tata logo
appears on buses, dump trucks, ambulances and cement mixers. Sturdy as elephants, they are
a fixture of the Indian landscape. Owners inevitably paint the exteriors in a cheerful riot of bright
red, green, orange, blue and yellow and line the un-air-conditioned cabs with teakwood to keep
them cooler in India's searing heat.
However ubiquitous, Tata's trucks faced a problem after the Indian government began
reforms that opened the Indian economy in 1991: the huge cyclical swings in demand typical for
commercial vehicles. To diversify, Tata would enter, at great expense, the less volatile
passenger car market.
Before the reforms Indian customers had so few choices that Tata was sheltered. When
demand tailed off it just worked down a waiting list, and there was never a need to concern itself with customer desires. Sure enough, after the economy slumped in the late 1990s just when
expenses for developing the passenger car hit home Tata truck and bus sales plunged by 40%
and Tata Motors lost $110 million in fiscal 2000. It was the first red ink seen since 1945, when
the company was founded to make locomotives. Executives were stunned. "It was corporate
India's biggest loss," says Ravi Kant, managing director of Tata Motors. "The crisis changed us.
We told ourselves Never again.'"
But Tata Motors, part of India's largest conglomerate, first had to reset its ways. Like many
Indian companies protected for decades from foreign competition, Tata had gotten to 2000 still
fat and slow.
Change started with a spring 2000 meeting at the Lake house, a bungalow across the
street from the company's main factory in Pune, a three-hour drive east of Mumbai. Kant, then in
charge of the commercial vehicle division, needed fresh ideas instead of rigid resistance, so in
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an experiment, he called a meeting of 20 of his most promising young Managers all under 35
years old.
"I have a problem," he said in his matter-of-fact tone. "The company is bleeding." He asked
for ideas on how to stop the gush of red ink. Okay, they told him, trim costs.
Girish Wagh was there, just 29 then. He remembers the shock of what came next. "Ravi
Kant said that 1% in cost cuts would be a rounding error. He asked for 10%!" says Wagh. "Never
had we thought of such a target." Every single year until then costs had gone up, not down. Kant
told them to present a basic plan that very afternoon, in front of him and Alarmingly all their
bosses.
They worked frantically. By the 3 p.m. meeting, their wildest ideas were on the table.
Taken together, they added up to 6.5%. "A breakthrough!" Kant remembers thinking. But that's
not what he said. "Please go back and think again," he told them. He needed 10%, not 6.5%.
"You've got three weeks." The young team took some measures even as it scrounged for more.
In came benchmarking, purchasing from Internet auctions, and outsourcing parts to more
efficient suppliers and boosting revenue by selling Tata-made dies to other companies.
Meanwhile, the Pune factory's veteran boss bought into the project.
The transformation of Tata Motors had begun with the searing loss in 2000, but it
continued with a return to profit in the fiscal year ending March 2003. By then it was producing
two cars models and selling a bit abroad. Today, after buying or partnering, the company has
vehicle projects around the globe and exports 11% of output, mostly to South Africa.
Efficiency is way up: It now takes between 12 and 15 minutes to change a die on the
passenger car assembly line, down from two hours in 2000. The company's break-even point for
capacity utilization is one of the best in the industry worldwide. Between 2000 and 2006 nearly
6,000 workers left the company with early-retirement deals. Meanwhile, the once radical e-
sourcing idea has become routine for Tata, which ran 750 reverse auctions on Ariba in the past
year to bring down purchasing prices by an average of 7% for everything from ball bearings to
the milk served in the company cafeteria. Tata Motors listed on the New York Stock Exchange in
2004. After thousands of changes, in the quarter ending December 2006 Tata earned $116
million on revenue of $1.55 billion. Annual revenue grew to $5.2 billion for the fiscal year ending
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in March 2006. Analysts worry that high product development costs and rising commodities
prices could lower profit margins for the next few quarters.
The changes at Tata Motors are coming as India itself is transforming. With economic
growth charging along at 9% last year, more and more Indians can afford cars. But on the
highway from Mumbai to Pune, the new cars zoom past wooden carts filled with construction
materials and pulled by ponies, camels, elephants or even people. Roadside markets offer
chickens and geese those chosen are slaughtered on the spot and usually carried home on
motor scooters. Outside the Tata Motors gates in Pune, a woman in a flowing red sari balances
a 3-foot-wide basket on her head. It holds snacks and drinks and serves as a roving roadside
shop.
Inside the company gates is a modern factory complex. In one building, just past a small
statue of the beloved Hindu elephant god Ganesha, robots pick up pieces of sheet metal and
feed them into a series of 30-foot-tall stamping presses every ten seconds until the left-side door
of a Tata Safari suv is formed. In a building nearby, workers in navy-blue uniforms use
computer-aided designs from Tata engineers to create tools and dies used to make those sheet-
metal stampings. Tata Motors boosts its revenue by making dies for Jaguar, Ford, General
Motors and Toyota too, just as it does by allowing the made-in-India Mercedes to be run through
its paint shop.
# Source: (NYSE: GM - news - people) & (NYSE: TM - news - people)
Workers at the Tata Motors factory have been trained in Japanese manufacturing
techniques that call for continuous improvement. A worker building Safaris noticed that each day
on average, one front grille was ruined when a worker leaned over to work on the engine and
accidentally scratched the grille with his belt buckle. Cost: about 2,500 rupees $57 a day, or
$17,000 a year. Tata designed a simple protective cover for the grilles, plus a slip-on fabric cover
for belts and watches that is now used to cut down on expensive waste at each of Tata Motors'
factories. Cost: about 25 cents per vehicle.
That's the sort of thing that Girish Wagh, one of the breakfast-meeting whiz kids, was
working to foster when Kant called him in unexpectedly in December 2000. Kant needed
someone to take on a risky project to extend the truck line beyond the sturdy Tata mainstays.
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Kant wanted one cheap enough to compete with three-wheeled, motorized rickshaws and even
considered building a small, three-wheeled truck. Before starting the project, Wagh did
something no one at Tata Motors ever had: He talked to customers. The three-wheeler men
inevitably insisted on a cheap, dependable truck that could go from village to market carrying,
say, 200 chickens, a ton of onions or potatoes, or 2,000 eggs. One night, as sunset approached,
Wagh stuck with one rickshaw driver. "I kept asking the question. Why? Why? Why do you want
a four-wheeler?" Wagh remembered. Finally, he got the real answer. It turned out it wasn't really
a problem of chickens or eggs. "If I had a four-wheeler, I would have better marriage prospects
in my village," the young man said. Drivers of three-wheelers are looked down upon in India.
Wagh realized that four wheels had emotional, not just practical, appeal.
When Tata Motors brought out the bare-bones Ace truck in May 2005 for just $5,100, it
had a monster hit: The company sold 100,000 in 20 months. To try to keep up with demand, it
offers the truck only in white to save the time it takes to change colors in the factory paint shop.
Tata is building a new factory that will be able to turn out 250,000 a year starting this month.
So when Tata Motors needed someone to take charge of the company's most ambitious
plan yet to build the world's cheapest car ever Ravi Kant, who by then had become the
company's managing director, again turned to Wagh. Wagh remembers what he learned
marketing the little truck. "People want to move from two-wheelers to four-wheelers," he says.”Today they can’t 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 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.
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Within a few years 2 million of those motorcycle owners may trade up to buy the Tata car,
Figures McKinsey and Co. partner Ramesh Mangaleshwaran in Mumbai. Trying to build a
car cheap enough for motorcycle buyers seems to make sense now but seemed crazy several
years ago when Ratan Tata, longtime chairman of Tata Motors and scion of the nation's giant
Tata Group conglomerate, first mentioned his dream of building a one-lakh car in 2003. "They
are still saying it can't be done," he says, insisting that it can and will. "Everybody is talking of
small cars as $5,000 or $7,000. After we get done with it, there will hopefully be a new definition
of low-cost.”
Many low-cost car producers have set up shop in India, and McKinsey believes it could
become a global hub for small-car production the way the U.S. is for pickups. Hyundai and
Suzuki (other-otc: SZKMF.PK - news - people ) build their small cars in India, and Toyota is
considering an India hub. Passenger vehicle exports grew by 13% last year to 192,000,
according to J.D. Power and Associates, with Hyundai exporting more than 110,000. A one-lakh
car is unlikely to be sold in the U.S. But it wouldn't be aimed only at India, either, Ratan Tata
says. Bottom-of-the-pyramid markets would be the best fit: places like Africa, Southeast Asia
and maybe eastern Europe and Latin America, Wherever income levels mirror India’s.
The cost target is tough, but there are plenty of other hurdles at home. India's inadequate
roads, for one. Roads and highways are being built nationwide, but if India goes car crazy,maddeningly slow traffic is inevitable for several years. By far the biggest struggle in India is
political. The People's Car factory is already caught in the crossfire, as politicians and pressure
groups squabble over forcing destitute farmers off their land for a project expected to bring
10,000 jobs to industry-hungry West Bengal.
The company signed the final deal with the state last month and has begun the property's
boundary walls, land leveling, and road and building plans. "We've lost four months," says Ratan
Tata. So far. He is still personally driving the People's Car project. It is a rear-engined, four-door,
four-seat car that will get around on 33hp more pep than the Model T or the VW Beetle had
when they drove onto the scene. The cheapest versions won't have air-conditioning or power
steering, but Tata hopes its cute looks will make up for missing creature comforts just as
happened with the VW Beetle and the Mini long before it.
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Tata Motors has not released a photo of its prototypes, but Ratan Tata, a trained architect
with a penchant for designing consumer goods, sketched its outlines for a reporter's eyes only.
He drew an egg-shaped car with a ceiling high enough to handle his tall frame. He pointed
proudly to the air intake scoop in front of the rear tires and the vertical taillights similar to those
found on the Tata Indica. Under the front hood it will have a small storage space, "like an
overhead bin" on an airplane, Tata says. "It is not as small as a Smart," he says. "It is not a car
with plastic curtains or no roof it's a real car."
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Tata Nano - The little car that might change the world
TECH SPECS:
Length : 3.1 m
Width : 1.5 m
Height : 1.6 m
To seat : 4
Engine : 643cc, 2-cylinder, all-aluminum
Power : 33 BHP
Position : Engine, battery at rear end
Boot : In front
Fuel : Petrol
Fuel injection : MPFI
Fuel consumption : 20 kmpl.
AC : Only in deluxe version
Passenger side mirror : No
Power steering : No
Price : $2500 at dealer + VAT + transport cost. Base version
approximate on-road price: $3000
Tyres : Tubeless tyres.
Body : All-steel
Safety features : Crumple zones, intrusion-resistant doors, seat belts,
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2 A-Pillars
Suspension : Independent front and rear.
Seldom do we see cars that rewrite the history books even before they are seen running
around on the roads. And hardly ever do we see cars that vow to put the nation on four wheels.
The Tata Nano is one such car – a car that has been in the news for quite a few years, for
reasons good and evil. Nano is a car which has breathed into life due to one man. Give credit to
Mr. Ratan Tata for his determination to build a low cost family car that has come true, finally!
Took long it did, but the Nano came in a beautiful form. Touted as world’s cheapest car by a far
cry, Nano has been the talk of the town around the globe. Head honchos of big organizations
have been pouring in by numbers to have a look at this engineering masterpiece. We bring you
some interesting bits.
Looks:
Numbers first.
Length 3100mm
Width 1500mm
Height 1600mm
Wheelbase 2230mm.
Ground Clearance – 180mm
You will be wondering why I am talking about the dimensions of the Nano, since all of you
know that it is a rather compact and tiny machine. It is because I have good reason to talk about
the dimensions. You see, the Nano is going to be faced with Maruti 800 as its main rival. But you
could throw in the Alto and Zen Estilo to mark out some design and packaging aspects. Just to
get things in perspective, Nano is over 230mm shorter than 800 in overall length but the
wheelbase advantage of 155mm over the offering from Maruti makes sure that the Nano is more
accommodating than the 800. Tata has managed to squeeze out a 60mm advantage in width
and Maruti 800 falls short of about 100mm in height. So in essence, you get more legroom,
better shoulder room and room more than enough for a turban, if you wear one! But before you
enter inside, you are bound to gape in admiration at the beautifully crafted curves of this micro
car. I personally feel that the front has a lot of Zen Estilo written on it, but manages to look really
funky and cool.
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The mono-volume design establishes a sea of change from the two-box layout of the 800.
What it ensures the Nano with is extremely short overhangs and tight packaging. For a car of
this size and image, the Nano is an extremely sexy looking car with futuristic design cues. The
bonnet line is steep and unites together with the bumper in a seamless way. Though there is no
‘grille’ per se, the front has a smiling look which accentuates the ‘happy’ feeling. The fog lamps
are incorporated in the bumper which has a distinct air dam running across in between them. In
profile, the Nano resembles Mitsubishi’s latest small car ‘i’. The rear of the Nano is somewhat
recognizable. The tail lamps are inspired from elder sister, Indica. So this is a very compact
hatchback, yes? No my friend, you are massively wrong. Even I was dumbfounded when I
discovered that the Nano cannot be called a hatchback – a word so true to the way the small
cars are. The reason for this is because it does not have a hatch! The tail gate cannot be opened
owing to it being joined together with the boot sill. This makes accessing the engine a pain in the
bottom. But a hatchback it will be called still. The back side of the Nano is made attractive by the
mid mounted exhaust pipe which peeps out of the aggressively designed bumper.
The ultra-secret people's car for India - the Tata Nano - is here. How will this car change
the way India, and the developing countries drive?
It will help India's huge two wheeler popular upgrade to a four-wheeler
Very affordable - priced a bit higher 2 125cc motorcycles in IndiaIf popular, will clog roads in the cities
Establish a huge volume market that cannot be ignored by any large car manufacturer
40 patents by Tata Motors during development.
Here are the pictures from the unveiling of the Tata Motors' small car to be sold at a price
of US $ 2500 approx. (Rs. 1 lakh.). The Tata Nano was unveiled at the 9th Auto Expo in New
Delhi, India.
The Nano is disruptive tech - make no mistake.
The world's car manufacturers have expressed all shades of opinion in the run-up to the
Tata Nano. Suzuki has said that it is impossible V W said it is not what they want to do.
DaimlerChrysler said they think it is an important market Tata is trying to tap.
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There was no way Tata could design a car the conventional way. So went at it on a clean
slate. And seems to have pulled it off. The rear engined car will have a small boot for luggage
storage in the front. In the process of developing the Nano, Tata Motors has added 40 patents to
its kitty.
This car, if it becomes a hit, will make every auto company change the way it works and
look at the volume market. Not only in India, but in entire Asia and every third world country.
Offering mobility for the masses is big business. The VW Beetle did that, and so did Henry Ford.
Environmental Impact:
In India, a car like this can crowd the streets, forcing the government to improve
infrastructure - and as the evolution of the Western industrial society demonstrates, affordable
cars can be a major force for change. But till that happens, this is a car that can seriously crowd
the streets - and make life a bit tougher in the short-term.
The car will have a two-cylinder 624-cc petrol engine with 33 bhp of power.
It will also have a 30-litre fuel tank and four-speed manual gearshift. The car will come with
air conditioning in the deluxe version, but will have no power steering. I know, that's patheticpower by American and Western standards. But Indian maximum legal speeds are way lower
than them - and Tata Motors anyway claims that the car is as fast as the Maruti 800, India's
original People's Car that changed things a couple decades back. And there are a million or
more of them on the streets of India already. The car will have front disk and rear drum brakes.
The company claims mileage of 22 kmpl in city and 26 kmpl on highway.
The $ 2500 is the dealer price - the actual price on the road might be approx Rs. $3000.
The car would be commercially launched in the second half of 2008 and would be
produced at the Singur plant in West Bengal.
The car launched is being avidly watched by the auto industry around the world.
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As attractive as the Nano is on the outside, the same cannot be said for the interior. The
plastics feel cheap and it is here that you begin to feel the concern towards the price that Tata
was aiming at. The rudimentary knobs and switches point towards the use of materials which
would be better off in tractors twenty years old! Dreary and uninspiring by any measure, that’s
what one can say about the interior quality and looks. What impressed me though was the
layout. Spacious and functional, the dashboard has a curved look which can prove beneficial
when it comes to storing items. The Chevy Spark started it for the small cars and the Nano
continues on what seems to be the current trend. The instrument binnacle is mid-mounted and
the centre console has a swooping form which houses all the important knobs and air con vents.
Speakers for the audio system have been incorporated on the rear bench just under the seat
area.
The speedo is calibrated to a top whack of 120kmph though we shall reserve our
statements on that till we test the car thoroughly. Cash saving activity has gone a bit too far with
the sun visor, there’s only one! Please Tata, please, have mercy on the people who will sit on
the passenger seat, only to find no sun visor to protect their skin from sun or no vanity mirror for
women (men too, going by the current fashion!) to put the make-up on. The centre console,
forming a crest in the middle of the dash, can be worrisome if you happen to be as tall as Rajpal
Yadav. The seats have integrated head restraints, like in the hugely popular, Hyundai i10. Yes
the Nano will be deprived of a lot of creature comforts but to satisfy your salivating mouth, Tatawill offer the top end version with air con, power windows and power steering. This car is
destined to be exported too, so provision for ABS and airbags will also be there for sure. The
floor mounted four-speed gearbox wasn’t smooth as silk but would give the 800 something to
take inspiration from. Roominess is what this compact car from Tata is all about. Four average
sized Indians will find themselves enjoying their ride.
Safety:
Passes crash tests. Side impact test yet to be done, but Tata is confident about it. It has 2
A-pillars on one side to better meet safety norms. No airbags. Airbags are still not a required
feature in India. But you have crumple zones, intrusion-resistant doors, seatbelts and
anchorages.
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A four wheeler is safe than a scooter. So to begin with, the huge two wheeler population of
India gains a safety benefit. But will it pass the safety requirements of a large car or even a high
technology compact? Unlikely. But that is not the objective - it is to improve the safety of four-
member families like this one that rides scooters and at risk every day.
And so here it is. If Tata Motors is right, we could be witnessing a serious disruptive force
and one that might kick-start India on to a high growth path. Successful mass market mobility
does that to a country.
Mechanicals:
Everyone, and it does not discount the motoring journos, expected the ‘One Lakh Car’ to
have a plastic body. But boy did Tata play it big there! Contrary to everyone’s belief, the Nano is
a metal-bodied car with four full-blown doors to ease the ingress and egress. This is a uni-body
construction but makes use of a sub-frame which adds to the strength in addition to providing
support for drive train and suspension units. The suspension has a story of its own altogether!
Well, Tata engineers said that since the rear-biased weight distribution led to some scary
moments while testing the car, they had to optimize the suspension setup and add a fair amount
of other eccentric but equally helpful technical add-ons like fatter rear tyre while the battery box
and fuel tank are placed right underneath the arse of front occupants.
The engine is what has been the buzz word around the car. It is an all-aluminum two
cylinder engine displacing 624cc with two valves per cylinder driven by a single overhead
camshaft. The bore and stroke are nearly similar giving it a ‘square’ form. Making the Nano
move will be the power of 33 horses which will peak out at 5500rpm while 48Nm of turning force
will be supplied at a meager 2500rpm which should help the drivability of the car. The Nano will
transmit its small amount of power via a 4-speed cable operated gearbox with the fourth being
an overdriven ratio. Tata is working on developing an automatic gearbox as well but that will not
be available when the car gets launched later this year. In addition to the 624cc petrol engine,
the Indian auto giant might also bring out a common-rail diesel engine (700cc) which might be of
the same architecture as the one seen on Tata Ace.
As it was famous, Tata’s One Lakh Car will not exactly be that. Not a one lakh rupee car it
will be. The base version, when it will come to a parking halt will see you shed close to 1.2lakh
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while the one which will sit in between with some necessary creature comforts will be priced in
the vicinity of 1.5lakh. The top end might retail for close to 2.0lakh, we speculate.
Quick Specs:
Price : 1.2lakh onwards
Engine : 624cc, in-line, twin-cylinder
Power : 34PS@5500rpm
Torque : 48Nm@2500rpm
Gearbox : 4-speed manual, Cable operated
Top Speed : 95-100kmph (Speculated)
Fuel Efficiency : 20kmpl (claimed)
Length : 3100mm
Width : 1500mm
Height : 1600mm
Wheelbase : 2230mm
Ground Clearance : 180mm
Fuel Tank Capacity : 15lt.Kerb Weight :
600kg.
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Literature review:
Latest News
Tata Motors takes forward its initiative to support primary and secondary education in
Singur.
Taking forward its initiative to support the cause of primary and secondary school
education in Singur, Tata Motors today helped a primary school in Joymollah upgrade its
infrastructure. The company provided desks, benches, chairs, tables, cupboards and electrical
fittings in addition to educational and sports material to the school, in the presence of school
authorities, officials from the panchayat and local administration, Tata Motors' officials, school
students and residents. Tata Motors had flagged off its education initiative with a similar activity
in a primary school in Ruidaspara, Beraberi recently.
As part of its initiative, Tata Motors recently set up a computer laboratory in a high school
in Beraberi, and has provided 5 computers, 5 CVTs (stabilizers) and 5 computer tables and
chairs to the school. The computer laboratory was inaugurated by Mr. Prosenjit Chakraborty,
Block Development Officer. The company has planned similar programmes to upgrade school
infrastructure in the project area.
This initiative is part of Tata Motors’ comprehensive community development programme
for Singur, in line with the company’s practices in other locations. The three focus areas in
Singur are – Health, Education and Livelihood. The programme includes: a) training, according
to an individual’s educational qualifications and skill, to improve their employability; b) training
women for employability – through facilitation of cooperative societies – to produce a diverse
range of items, which could be used in the Tata Motors plant or the vendor plants; and c) social
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development in the Singur area, through community centers, and support for primary health,
provision for drinking water, primary/secondary education and adult education.
As part of its health initiative, Tata Motors has been regularly conducting health camps in
Beraberi and Joymolla, where patients receive treatment and medicines. Till date, over 54 health
camps have been conducted, where over 10,170 villagers were treated.
Tata Motors recently inducted a batch of around 100 youth as apprentices at the Singur
plant. This batch comprises youth from Singur villages and from various ITIs of West Bengal. 16
local youth, educated in state-run Industrial Training Institutes (ITI) have been appointed as
employees at the Singur plant from October 2007. 300 others are undergoing training. On
successful completion of the training programme, the trainees will take the trade tests to qualify
for trade certificates issued by the National Council for Vocational Training (NCVT) and will
become eligible for apprenticeship training at the Singur plant and vendor facilities.
Tata to ride Nano to Geneva Motor Show
Tata Motors' Nano, easily the world's most talked-about car these days, will make its
international debut at the 78th Geneva Motor Show in the first week of March. The five-door
hatchback that costs just Rs 100,000 ($2,500), making it the world's cheapest, was unveiled in
January this year at the Auto Expo here. Nano would be among Tata Motors' exhibits at theshow, a company spokesperson said here.
Sales of Nano, nicknamed the people's car for its affordable pricing that will make four-
wheelers available to millions of middle-class people who hitherto rode two-wheelers, is
expected to start in the second half of this year.
Although the car has its share of critics, it has undeniably put India on the global
automotive map and has triggered a race among leading car makers to match the Nano price-
point. Already, car manufacturers Renault and Nissan are eyeing a $3000 car.
The Nano, which Tata Motors has said meets all safety and emission norms, will share the
limelight with top marques from around the world that are expected at the show. This year's
edition of the Geneva Motor Show will mark the 11th year of participation for Tata Motors. Tata
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Motors' Nano, easily the world's most talked-about car these days, will make its international
debut at the 78th Geneva Motor Show in the first week of March.
# Source :The Economic Times — February 7th, 2008.
What gave Nano a headstart ?
The Nano could potentially challenge the conventional wisdom within the auto industry that
wholly new concepts do not live long enough. New launches basically add a whistle here and a
bell there to the plethora of existing models. Indeed, in more than 70 car launches worldwide,
there have been not more than a handful of seminal shifts within this industry.
But the Tata offering has come to topple all those casts by reordering the status-quo. The
whole story seems to strike two notes at once. The first one is true to the old adage among
businesses that the wise profit from giving that which profits their customers; the second dares to
contrarily create and nurture a space that others overlooked or even rejected.
Some known facts:
Not too long ago, many pundits within the industry had held that small cars such as the
Maruti 800 have outlived their use and must, therefore, pack up. Yet, just into 2008, a glowing Mr.
Ratan Tata drove on to the stage in his Nano, that sports a far lower powered engine and which
may soon storm the Indian roads. Surprisingly, many of the same pundits who had bemoaned the
twilight of Maruti 800 have now begun to celebrate the business sense that the Nano exudes. It
looks like, in any case, the Tata Nano project has defied textbook constructs of successful
venturing.
In fact, we knew for good reasons that there is much less money to be made in small cars.
We also knew that products conceived for specific markets have less possibility of success than
those visualized on a global basis. And, admittedly, auto majors with a wider, deeper portfolio of
cars are rightly believed to be able to gain more profitably from a radical but relevant offering.
Such manufacturers, it is often acknowledged, are able to reap from the economies of scale that
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can be got from sharing the costs of design, manufacture and retail, among their entire product
line-up.
Small-car concept The Tata project bore none of the above usual stamps of success. Yet it
is pretty hard to term Nano anything but a success going by the reception it received. This
perhaps indicates that the real game is one of strategy.
Indeed, it is not so much about cars or of experience as about getting clear the underlying
concepts and attitudes. Ironically, Tata's capture of the "small car concept" is in itself hardly path-
breaking.
One recollects that when the Maruti 800 was introduced around the mid-1980s, it was,
even after adjusting for the then stronger rupee, an immensely affordable car (well below a lakh of
rupees). It was, in fact, India's first small, sweet car.
But, over time, the sweetness of Maruti 800 - rather than the real demand for small cars -
had diminished. That was primarily because of its price, which kept on surging.
What is certainly path-breaking is the price tag of the Nano. Even if we went all the way
back before all those price rises and income growth spread over the past two consecutivedecades, Nano's price would have still generated a landslide sales record in the mid-1980s.
The price element And, what is important is, where a pre-liberalised mid-1980s
represented stunted buying power, "today's India" that is to receive the Nano, represents greatly
enlarged buying power.
This, in effect, gives the Nano an exceptional welcome thrust. Besides the element of
price-point - where Tata Motors led the pack on a wide margin - almost every other major car
company in the world seems to have otherwise just as seriously investigated small cars. If
anything, notwithstanding the environment dimension, the persistently high oil prices of the
present decade have, in fact, made all makers gravitate toward more fuel-efficient, smaller cars.
The key question, then, is: With so many auto firms zeroing in on small cars, how did Tata Motors
achieve such astounding price levels? Indeed, when global industry majors were talking about a
small car with trendy, tiny engines, they were all, in effect, attempting to scale down on what they
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were traditionally good at: Medium and big cars. Two perspectives Unlike Tata Motors, almost
none of the global majors had paid due attention to the thought of an all-new small car. There is,
for sure, a big difference between scaling down a big-sized car to a viable small size and creating
one ab initio. The gamut of idea generation, concept, design, making, retailing, and so on, differs
a great deal between the two perspectives. The first perspective tweaks to fit what is already on
hand, whereas the second creates afresh to fulfill what is widely sought.
Consequently, the processes that colour the making of an inexpensive and cheerful car
are not at all 'cheap'. Understandably, those processes have to be richer in innovation, bolder in
imagination, nimbler in evaluating and, of course, shrewder in putting together the pieces (ideas,
hardware, and costs) appealingly. Taking the lead The stalwarts of the car industry never quite
saw 'small cars' as 'small cars'. Here is where Tata Motors strode ahead, giving Mr. Tata and his
team a head-start. The Nano, then, brings home the truth that lacking certain advantages can
actually prove more rewarding. The car industry, unlike the insurance industry, which enjoys
safety cover from reinsurance, has never been able to obtain a guaranteed cover for assured
success.
One could say that the future Nanos would certainly get their shots of incremental
improvement. So, too, would be the approaches of many other aspiring small-car makers, after
taking note of this primordial shift. Although it is a little too early to be looking for it in the rear viewmirror!
# Source : The Hindu Business Line — February 5th, 2008
The man and his dream machine
Mr. Ratan Tata, a shock of grey on his head, a grim look on his face, shuns the limelight.
But on Thursday, the industry patriarch perhaps did not mind the thousands of flashbulbs that
popped in his face as the world took its first look at an astonishing Tata product: the Nano. His
usual taciturn expression gave way to a smile as he threw a repartee at the environmentalists for
their worries that the Rs 1 lakh "people's car" would add to India's emission woes.
Ratan Tata's quiet moment of triumph was deserved. Despite being born to luxury, he had
felt for the Indian family, riding four to a bike. Their dream machine-his dream machine-was here
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now, having weathered the odds and the critics' pessimism. To top it, there came news that the
Government had allocated spectrum to his companies to operate GSM mobile services, a
moment that harkened back to bitter wrangling with established GSM players.
The initial response to the Nano has been overwhelming and the tiny, Noddy-land car is
expected to help the company cross several milestones. With revenues at Rs 1,29,994 crore for
the financial year 2006-7, and group companies enjoying a market capitalisation of Rs 2,51,487
crore as on January 10, 2008, the Tata Group is on a strong footing, contributing more than 3
per cent to India's GDP. Nano, being the world's cheapest car, has made international players sit
up in amazement and the company has received proposals from some African, Latin American
and Southeast Asian countries to manufacture the car there.
The Nano will make millions of Indians mobile. But then, that has always been a Tata
specialty: over the 138 years of the company's existence, it has been helping India propel itself
forward. It is emblematic of the company's own recent push to become a proactive corporate
mover, not the stolid doer it had been for generations. The acquisition of Tetley in 2000, the
takeover of Corus to become the fifth largest steel company in the world and upping its stakes to
become the frontrunner in acquiring the Jaguar and Land Rover brands from Ford, all make a
statement for Tata as a company on the move.
When Tata Tea bought Tetley, it made big news as Tetley was a much bigger company.
Similarly when Tata Steel took over Corus, it did so without a hint of corporate bashfulness.
When Tata Tea bought 30 per cent stake in Glaceau, it was looking for the international
marketing acumen of the company to leverage for Tata Tea. But then with another company
acquiring the majority stake in Glaceau, Tata was left with no option than to book the gains of its
investment in Glaceau. But there was still a footnote to the episode and it stated that the Tata
Group was aggressive about going global.
The importance that the economic community puts on the Tatas is evident from the fact
that three group companies form a part of the Sensex, the most to represent a corporate. RDAG
(Reliance Dhirubhai Ambani Group) is represented by two companies in the benchmark stock
market index. The combined weightage of the market cap of the three companies in the Sensex
is 6.4 per cent. Tata has 13 other listed companies, excluding the three that are a part of the
Sensex.
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The future of the group will be defined by some of its flagship listed companies-TCS, Tata
Steel, Tata Motors, Tata Power, Tata Teleservices and by Tata's venture into financial services
with Tata Capital. In the current market scenario, not only does Tata Motors stand tall after the
Nano, but Tata Steel, on the back of growing demand for steel and rising metal prices, is also
strongly positioned.
Power is the buzzword in Tata circles these days. Tata Motors has bagged the Mundra
Ultra Mega Power Project and there are other projects to be undertaken by the company. As for
its finance company, the entity Tata Capital has three companies within it, Tata AMC, Tata AIG
Insurance and Tata Investment Corporation. As and when Tata Capital gets listed, it will unlock a
lot of value for the company. How the company moves ahead will depend a lot on who takes
over from Ratan Tata, a bachelor. Retirement, though, is not what preoccupying Ratan Tata’s
mind is. In fact, he has another dream-for himself and his countrymen: availability of clean
drinking water. He has already put his scientists on the job of finding the cheapest method of
purifying water for drinking.
The company has had a strong inheritance line and that has been an important aspect in
the continuous evolution and growth of the company. Ever since Jamsetji Tata established the
first textile unit in 1870, the company has rigorously moved ahead. Dorab Tata established TataSteel and Tata Power and took the Tatas into new segments of operation. Then came the
aviation pioneer JRD Tata, who brought commercial aviation to India under the name Tata
Airlines, later nationalized into what became Air-India. He also has to his credit the tea business,
hotels, trucks and locomotives, among others.
The latest in the line of Tata patriarchs, Ratan Tata has not proved less than his
predecessors. He was instrumental in producing India's first indigenously designed and
manufactured car, the Tata Indica, a new version of which was released a day before sibling
Nano took centre stage. He has shown the aggressive face of the Tatas-as the acquisitions that
it has gone for and successfully completed. And now he has delivered on his promise of
launching the world's cheapest car. While Ratan Tata is around, surely there will be little talk of a
successor.
SUMANT BANERJI
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The people's car, also the cheapest in the world, is here with us and as we write this, it is
being scrutinized by millions across the world. But not many know that the Nano is not only a
work of art perfected by 50 engineers in Tata Motor's plant in Pune-the character of this low-cost,
cute-looking, four-wheeled vehicle has the stamp of Ratan Tata all over it.
It was Tata, a trained architect himself, who wanted a car tall enough to hold his 6 ft tall
frame. People say he once joked in the factory that he wanted to drive the car himself at the
launch. That is how the car gets its tall boy looks.
When the company was looking to cut costs, it was Tata who suggested the Nano have
one windscreen wiper instead of two. The original blueprint for the design of the car, prepared by
Italy's Institute of Development in Automotive Design-which had also designed the Indica over a
decade earlier-had a more sedate-looking car. Tata, with his eye for detail and aesthetic sense,
made it look more revolutionary and, few will deny, more likeable. Along the way, it became less
expensive as well.
But the Nano is not a story of one product. It is not a story of Ratan Tata's long pending
dream. It is a story of the journey of Tata Motors itself. As the Tata patriarch himself admitted
after the unveiling, it was the Indica that was a bigger risk. For a successful company. Nano is ameans of achieving an ambition, not of survival.
In many ways, the Nano story starts in 2000. That was the year when the company,
despite its Indica, faced losses for the first time in its 55-year history. An economy that was in
decline resulted in the company's turnover receding by almost 9 per cent in 2001.
Till then Tata Motors was the face of the Indian highways. Its sturdy trucks and buses were
as ubiquitous on the dusty landscape as the roadside dhabas. The company was the
unchallenged leader in the auto industry with an over 65 per cent market share.
Things changed after 1992, when globalization stepped in and Tata found itself wanting. A
spate of technological joint ventures followed, first with Cummins Engine Co and then with UK's
Tata Holset Ltd and Tata entered the passenger car space with the Indica in 1998. The idea then
was to entrench itself in a widely changing industry but the crisis at the turn of the century proved
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that Tata was in trouble. In 2000, Tata Motors was a bulging, slow-moving auto giant all set for
decay.
The company went back to the drawing board and the commercial vehicle division was the
one that saw the first change. The head of the division, Ravi Kant (the current MD), decided to
revolutionize the flow and inject young blood. Instead of depending on the grey heads, he asked
the engineers to show the way. The solution he had in mind was to cut costs.
It was in those times of distress that a saviour in the form of Girish Wagh emerged. Wagh
was given the responsibility of a project so risky that at that time only a young man could have
taken it. It was to build a small truck that would ensure last mile connectivity. Something that
would work where the traditional trucks stopped. Today we know it as the Tata Ace - a mini truck
that was such a runaway success that even passenger cars paled in comparison.
Ace's success convinced Tata that a small car built frugally but practically, would sell.
"Nano was a concept that was in Tata's mind even as Ace was being developed. In many ways it
is a precursor to Nano and its success convinced him of its salability an important facet for a
listed entity with shareholders riding on it," said a Bosch official, the company that supplies Nano
engines.
Wagh was the obvious and automatic choice for Nano as well. By the time Tata announced his
wish to make a small car in 2003; the company was back to its money-making ways. After that
slump in 2001, the company's revenues went up in 2002-3 and by the next fiscal, the turnaround
was complete.
"In many ways I was more nervous with the Indica. That was a time when we were getting
into a completely new area of passenger cars. Our CV business was also not in great shape. So
there was pressure," Tata himself admits. "Now both our divisions are doing Well and making
money.”
But unlike the Ace, which had to be small and not necessarily inexpensive, Nano had to be
both. Wagh knew that as the company challenged its own limitations, its component suppliers
had to do the same. "The Nano was as much a dream for us as it was for our suppliers. They
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have challenged their own capabilities and have helped us in no small way in realising our
dream," says Tata Motors Managing Director Ravi Kant.
The engine, alternators, management systems and brakes come from Bosch, transmission
comes from Birla's Avtec Ltd, steel from its own Tata Steel, castings from Tata Metallic,
headlights from Lumax and batteries from Exide. All these components are different from the
standard ones fitted in other small cars and the companies have made concessions and spent
extra hours on R&D for the dream car. Some do not even expect to make money with the
association.
"Our association with the Nano project is more notional. We do not have major margins
and will start making money only after 1-2 years," said P.K. Kataky, Director (Automotive), Exide
Industries Ltd.
The challenges did not end with the product alone. In the wake of controversy surrounding
the policy on SEZ, Singur in West Bengal, the site for the Nano factory, became a rallying point
for protestors. Tata had won the technological battle but a political one still stared it in the face.
Tata lost over four months and there were anxious moments when company officials
sometime thought aloud if the project should be shifted. A belligerent monsoon last year did nothelp matters either. The low-lying factory site was flooded and work had to be stopped.
"Thankfully we had not placed any equipment at that time or the loss and the delay would have
been greater," says Tata. With the passage of time, both the opposition and rain water receded.
The dream came to the fore four years ago but no one knows how cherished or long
standing it is for Tata. The sense of relief on his face was palpable and as he stood addressing
the world with the car in the background, he looked the youngest 70-year-old ever.
Ratan Tata's dream has stepped out of its private domain and is awaiting mass approval. If
it comes, Tata Motors will have well and truly arrived.
# Source : As published in the Indian Express — January 13th, 2008
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The making of a modern classic When Tata engineers began making the Tata Nano, it
was seen as an act of faith; what they have accomplished is an act of courage.
In early 2003, five engineers from Tata Motors trooped into the main conference room at
Bombay House, the Victorian sandstone building that houses the headquarters of the Tata
Group. They had been summoned at a day’s notice from the Tata Motors factory in Pune by
company Chairman Ratan N. Tata, who had just made a promise the world said would be
‘impossible’ to keep. Classic cars down the years. Top to bottom: Ford Model T(1908),
Volkswagen Beetle (1938), Morris Mini Classic (1958), Swatch-Mercedes Smart (1998), Tata
Nano (2008) Tata had told a Financial Times correspondent on the sidelines of the Geneva Auto
Show that he was thinking of making a car that would cost about € 2,000. Adjusted against the
then exchange rate of the rupee, that translated to Rs 1 lakh. Tata says he had never really
defined the project in his head exclusively by its pricing. "It was the media that said it," says Tata.
"But we decided to accept the challenge…." With that resolution, Tata imprisoned himself and
his engineers in a promise to fulfill which they would have to all but rewrite the principles of
automotive engineering.
When the engineers walked into the conference room that morning, they knew that the
meeting had something to do with Tata’s statement about a small car that they vaguely
remembered reading about in newspapers a few days ago. Little did they realize then that thenext four years of their lives would be dotted with moments of agonizing failure and heady
success, between which they would eat, drink and catch up with their families. The worst: the
engineers would not be able to share with anyone, even their wives, what was going on inside
their second home, the drab block of concrete called Engineering Research Centre (ERC) at
Tata Motors’ campus on the outskirts of Pune.
Jai Bolar, senior manager for development at Tata Motors’ ERC, recalls that the team
entered the conference room armed with just a 60-slide presentation on all the low-cost modes
of personal transport. The vehicles included motorbikes, auto rickshaws, scooters and the
company’s own Indica. "We had no clue as to what we were supposed to do,’’ says Bolar.”So
finally, we asked him whether he could tell us what he had in mind."
The next few minutes will, forever, be imprinted on the team’s mind. Tata, or RNT as he is
affectionately called, held forth, exhorting the team to dream of building a low-cost car that would
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cost only marginally more than a two-wheeler and revolutionize personal transport in India. Show
the world what Indian engineering is truly capable of, RNT told the engineers. "Make me also
part of the team. Only in a country like India or Pakistan can a low-cost car be made," he
insisted.
The motivational talk worked. "We came back from the meeting all charged up,’’
saysNagabhushan R. Gubbi, head of engineering for passenger cars. Gubbi did not know, nor
did the others, that they had just been impelled by arguably India’s most visionary businessman
to create history.
Spluttering Start The idea stage:
An early vehicle layout for the occupants the team made little progress over the next year
and a half. It tried to source parts from around the world, even toyed with the idea of an open car
with plastic or canvas sheets for protection. The problem was it was still thinking of making the
motorcyclist safer. Two-wheelers continued to overtake the image of a car in their minds.
"The biggest challenge when the project started was there was no brief, no benchmarks,
and it had never been done before," says Bolar. Even RNT had only the disturbing image of a
family of four riding a scooter on wet roads and an unclear dream to help such families asbenchmarks.
In August 2005, Girish Wagh, an easy-going, but intense 35-year-old with a reputation for
building teams and trucks, entered the scene. Wagh, a mechanical engineer by training, had just
helped build the runaway hit Ace. He arrived at a time when the first ‘mule’ was ready. A mule in
auto parlance is a vehicle that comprises the engine and transmission, driving a mock-up addled
with electronic sensors. It moves like a vehicle just for testing purposes. The first mule had a
marine engine that delivered 20 brake horse power (bhp).
Cranking Up At Tata Motors, Jain is regarded as a pioneer. He is credited with the first
gasoline engine that Tatas made. For two years, Jain scoured the world looking for an engine
that could fit a small car. He even tried motorcycle engines, but finally decided that RNT’s
common man would need an engine not yet invented. Jain then went to work with a clean sheet
of paper. He started off designing a small engine that would deliver 20 bhp, but realized midway
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that it would not be enough. So he increased the engine’s capacity to 554 cc, which delivered 27
bhp.
The engine still did not have enough zing and its driveability was not satisfactory. So, Jain
redesigned the engine and increased its capacity to 586 cc. That appeared to be peppy enough
and satisfy all parameters. The team, swelling in number as new tasks were incorporated and
specialists taken on, was working to meet three parameters — acceptable cost, acceptable
performance and regulatory compliance, not only current but also future.
While Tata engineers worked on the engineering of the car, Italian design house I.D.E.A.,
which also designed the Indica, was chartered with styling. Guided by RNT, the styling kept
changing. Though in an interview with BW, RNT underplayed his own role in the design, Wagh
says he was intimately involved in the styling and made some alterations even a few days before
the launch. "Mr. Tata was present at every testing and he made all the decisions," Wagh says.
"He was very focused on what the customer would like."
In December 2005, the second mule was tested, and by mid-2006, the first prototype or
alpha was ready. After testing the prototype, which ran on the 586-cc engine, the team found the
vehicle wanting. "We felt it needed to be longer," Wagh says. "RNT wanted changes in styling,
which meant changes in body design, which increased safety performance." It was decided toincrease the length by 100 mm. It meant redoing everything that was done until then. The team
was back at the drawing board.
Beat But Not Beaten
That the project did not have any specifications, and was never tried before, worked both
in its favor as well as against. With only three parameters to guide them, the engineers kept
coming up against failures. Jain says the biggest support from the management was not to hold a
failure against anyone. "The hardest part was continuing to believe we could do it," RNT said. "I
never felt the project won’t go through. I was scared I won’t meet Target- price targets, time
targets the auto expo…”
Bolar says that since there was no precedent to the project, everybody had a number of
concepts. "The management remained open, but the most challenging task was to define the55
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specs," he says. The Maruti 800 was the only benchmark to go by. And it cost more than Rs. 2
lakh on the road.
As the team struggled with constant change, which often put them at their wits’ end, RNT
and Tata Motors Managing Director Ravi Kant played a key role in preventing creative fatigue.
"We were like a football team," says Gubbi. "The leadership was where the ball was. Everyone
was playing for everyone.”
Ravi Kant put in long hours of work and was always available to take decisions, monitor
progress and keep the team motivated. "We exposed our people to products of competitors by
tearing those products apart and analyzing the good and bad and comparing them with our own,
thereby making people see why customers buy someone else’s products rather than ours," Ravi
Kant told The McKinsey Quarterly in a recent interview.
Abhay M. Deshpande, general manager for vehicle integration, says though there were
time and cost pressures, the collective leadership kept the engineers completely insulated from
them.
Sometimes the work was repetitive and tedious. In designing the engine, Jain did 150
thermodynamic simulations, each of them stretching eight to ten hours. Body systems expert R.G.Rajhans, who had built the body of the Indica and also the new Indica, had by then built about 10
different floors for the car.
Finally, in October 2006, Jain hit upon an optimal engine design. His creation had a
capacity of 624 cc and squeezed out 34 bhp of power. "It was the first time that a high-pressure
die-cast engine was made in India," says Jain. In comparison, the first Maruti 800, which was
powered by a 796-cc engine, delivered only 37 bhp.
Jain’s computer prototype was cast into a real engine in January 2007, when it was first
fired. With a multi-point fuel injection system developed by Bosch calibrating the gasoline flow, the
heart of the car was ready. Jain filed 10 patents for the engine. By the time the car was finished,
the company had filed 34 patents in all; and some more are in the pipeline.
An Idea Is An Idea :
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Japanese auto giant Suzuki, which makes the ubiquitous Maruti 800, also spoke out with
derision. "What is it going to be? A three-wheeler with a stepney?" Suzuki’s Founder Chairman
Osamu Suzuki had quipped when Tata announced the project. In February 2006, Suzuki again
took a shot, saying that it was impossible to make a reliable car for Rs. 1 lakh.
But within a year of Suzuki’s comment, the Tata team had reason to pop the bubbly. A
beta prototype was ready by the middle of 2007 and to maintain secrecy, it was tested at foreign
locations, such as test tracks in Germany and the rough terrains of Australia.
Just about 10 days before the Auto Expo at New Delhi’s Pragati Maidan where the car was
to be unveiled, RNT joined the team in Pune. He camped there until the launch, overseeing the
finishing touches. He personally drove it, and made several last-minute changes, including
changes in the seat covers and air vents, as the team prepared for the Big day.
Kinds of sketches about the car’s looks, three Nanos were shipped to Delhi in containers
and remained under cover until the night before the launch. In the wee hours of 10 January, the
car was rolled into Tata’s pavilion in hall 11 of Pragati Maidan right under the noses of several TV
vans stationed nearby. But they missed the action. RNT, who later admitted he had spent a
sleepless night preparing for the launch, and Ravi Kant, were present when the cars arrived.
That day will go down as a red-letter day in Indian automotive history. Using a three
dimensional hologram created in Germany, a ‘virtual’ RNT spoke to the huge crowds deluging the
Tata pavilion about the car he had dreamed of and which was finally about to be unveiled.
Then, the real RNT, his over 6' 2" frame comfortably ensconced in a white-colored Nano’s
driver seat, drove onto the stage what the world now acknowledges as a path-breaking car. As
the crowd roared and cheered, a visibly tired but moved RNT took the mike to assure them of one
thing — the car, despite the protestations of many in the press, would cost Rs 1 lakh. "A promise
is a promise," RNT said, sealing his place in the hearts of millions, whose aspirations of owning a
car were now reality. As Tata stood modestly enjoying his success on the stage, a foreign
journalist was overheard saying to another: "We are lucky to be here". The other replied, "Yes, at
least we can tell our grandchildren that we were there.”
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If the Nano was one of the most anticipated events in automotive history, its launch has set
the industry aflutter. "It’s a problem for Detroit," wrote The Washington Post, "which is racing to
enter India’s booming small-car market but will now have to completely revolutionize its
production and distribution to compete." Perhaps the most important comment came from Ford’s
Executive Vice-President John Parker. "It is a groundbreaking product," he said. "The Nano will
cause people to think differently about the car. I have a lot of respect for Tata.’’ It seemed like
poetic justice that the praise came from the company that had revolutionized personal
transportation with the launch of the original ‘people’s car', the Model ‘T’, exactly a hundred years
ago. Curiously, every ‘people’s car’ has been launched in the eighth year of the decade.
However, Tata Motors still needs to align the commercial imperatives behind the car,
analysts say. The company has invested Rs 1,700 crore in creating the Nano, which will yield
wafer-thin margins. Analysts are concerned the company will have a hard time achieving the
volumes before the Nano returns a profit. In fact, Tata Motors’ stock has been downgraded by
rating agencies on this count as well as concerns over RNT’s bid to acquire the Jaguar and Land
Rover for $2 billion. Analysts also seem unsure if a company can straddle a spectrum of products
that ranges from a $1-lakh car to a Rs 1-lakh car. "That car doesn’t have air-conditioning, power
steering, air bags and other features. Do you dare to buy that kind of car?" Wang Chuanfu,
chairman of Chinese carmaker BYD, Was quoted as saying at the Detroit Auto Show.
But RNT emphasizes that the Nano is not just a Rs 1-lakh car, but a platform that will be
used to create further high-end models that will sell for more and yield comfortable margins. Tata
Motors will also foray into electric and hybrid cars, using the Nano and its future variants as a
base, RNT says. He adds that he has also received invitations from at least two countries to set
up Nano manufacturing plants there, which will also help recover the car’s R&D costs. More
impressive are the intangible benefits RNT’s dream car has achieved for Tata Motors. For one, he
has put the fear of Indian engineering into carmakers across the world. In a single stroke he has
also made the Tata brand known in every corner of the world, something no other auto company
has ever done. In fact, the publicity the Nano has garnered globally would be worth more than Rs
500 crore.
The Last Mile :
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The launch was perfect, but the Nano has to go some more distance before it reaches the
customers. The last stage of cost reduction is expected to happen in distribution. Tata Motors is
developing an assembly kit for distributors who would stock completely knocked-down kits of the
car at warehouses and assemble them on site. Carting CKDs to different parts of the country is
expected to bring down costs as more parts can be transported in the same space that a fully built
car can be moved.
To enable cheaper assembly at the distributor’s end, some parts of the car would be glued
together instead of welded. "Usually those who make a small number of cars do such distributed
manufacturing," says Wagh. "Sometimes others do it to test the market. For the first time, it
would be tried on a large scale." Also, the car is still at the beta stage. Wagh says there would be
more tweaking done by the time the first car rolls out of Singur Later this year.
Already newly converted cynics are describing the car as revolutionary. The only person
not fully satisfied is RNT himself. "It is not as revolutionary as I wanted,'' he said. "I wanted the
car to be made from new materials, use new techniques, in a sense completely re-envisage the
way cars are made. In that sense I am still not satisfied,'' he told BW.
For the moment, however, the cute-as-a-bug Nano is the cynosure of all eyes. And Ratan
Tata has undoubtedly entered the hall of fame of automobile manufacturing.
# Source : As published in Business world, January 22-28, 2008
Nano makes it to Time’s most important cars of all time. One week after it’s unveiling, the
world’s media is still agog with news and views about the Tata Nano. Many termed it a cute,
ultra-cheap car that will revolutionize personal transportation in India and Asia and many others
are calling it a glorified go-kart that will be unreliable and unsafe. The debate is still raging in all
sorts of media - print, TV and the Internet.
Online polls that ask Americans if they will buy one if and when the Nano is launched in
that market, blogs that have postings, which swing from patriotic praise to outright hatred and
discussion forums that are still witness to heated arguments about the promise and fallout of the
car are keeping the Tata car in the thick of it all. The Nano has probably got more media
attention than it bargained for. But, it was only to be expected with the Nano’s much-publicized
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price tag making it the cheapest car of the world. Competitors who have in the past sworn that it
is an impossibility to develop a $2,500 car have reacted to the Nano as far away as Detroit – the
home of the American automobile industry.
Interestingly, the notoriously taciturn, Toyota Motor Corporation and its President, Mr
Katsuaki Watanabe, also reacted to the Nano saying that the world’s number two car maker will
need a little more time to develop vehicles at this kind of price point. It is reported that he also
added that an early prototype of a Toyota small car that will be made specifically for markets
such as India is close to getting a “go sign”.
In the midst of all this attention that the Nano is still getting, comes one of the first
recognitions of its potential to create history. In a presentation titled ‘The dozen most important
cars of all time starting from 1908 to the present’, Time magazine lists the Tata Nano along with
legendary cars like the Ford Model T, the Volkswagen Beetle, Chevy Belair, Toyota Corolla, the
Mini and the Honda Civic.
Listing the 12 cars in chronological order, the Time magazine presentation says only these
‘few automobiles have been able to fundamentally change the way we live and dream’. As for
the Nano, Time says “India’s ‘people’s car’, as it is already dubbed, is intended to put motoring
within reach of Asia’s masses. At $2,500 it’s hard to see it how it won’t sell, but even if it doesn’tit will become the poster car for a new, stripped-back style of engineering — glue instead of
welds! — that could change the world.”
Indian people's car
India is one of those developing countries whose economies are expected to be among
the world leaders by the middle of this century. Its technological skill and financial clout have
already made an impact in the IT industry and the international cricketing arena, to take just two
examples. But the unveiling of Tata Motors' Nano car in New Delhi yesterday Marks a new level
of Indian achievement.
The headline news is that the Nano will cost only pounds 1,300, thus opening a potentially
huge market in the developing world. But Tata has also stolen a march on giant vehicle
manufacturers such as GM, Ford, Toyota, V W, Mitsubishi and Renault-Nissan, all of which are
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looking to expand sales in Asia, Africa and Latin America at a time when the European and
American markets are, respectively, flat and declining.
Tata has produced a car that not only costs pounds 500 less than the cheapest Chinese
model, but also breaks technological ground by having a rear-mounted two-cylinder engine,
which both saves fuel and creates interior space. It has taken out more than 34 patents on
technologies used in its manufacture. The Tata Group, the country's largest conglomerate,
epitomizes the global outreach of modern India; having acquired the Corus metals company last
year, it is now seeking to buy Jaguar Cars and Land Rover.
The world's second most populous nation presents a striking contrast between that kind of
industrial clout and the poverty in which most Indians still live. At one end of the scale are
billionaires such as Vijay Mallya, who is promoting India as a Formula 1 racing power. At the
other are the inhabitants of Mumbai's periphery who lack decent housing, education and
healthcare. The Nano lies between those two extremes: a car built to attract members of the
urban middle class who at present perch on motorcycles. That it will add to India's already acute
traffic problems should remind the government of how far it has fallen behind in infrastructure
development, whether roads, electricity or water. The Nano is a remarkable first from a country
that still exasperates for its failure to provide basic services.
# Source : As published in The Daily Telegraph, London on January 11th, 2008.
Breathe easy People's Car, Nano, not that polluting
In spite of what Ratan Tata might say, Sunita Narain and RK Pachauri would have spent
an uneasy night. The prospect of hundreds and thousands of Nanos trundling down the roads of
various Indian cities spewing carbon dioxide and nitrous oxide would have been nightmarish for
them.
Are their worries justified? Not really, if the evidence and math’s are taken into
consideration. But that is getting ahead of the story. For some experts, Tata Nano is actually a
good thing. After all, had the Tata Nano not come along, there would have been another car to
take its place.
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"India is a growing economy and so people will buy cars. It is a good thing that they will
perhaps be buying a smaller car which is complying with more stringent norms rather than
a much larger car or a two-wheeler that follows less stringent norms," says Krish Krishnan,
managing director, Green Ventures, a venture fund that invests in green initiatives. Mr. Krishnan
has been an entrepreneur in sustainable environment development.
But let us get to the heart of the argument and look at it clinically. After all, how much
pollution will the Nano cause? Automobiles produce many pollutants: carbon monoxide, unburnt
hydrocarbons and nitrous oxides. To make things simple, all of these have to be converted into
equivalent amounts of carbon dioxide (CO2) — the Mr. Evil of environment today.
Now Euro IV compliant cars, which the Tata Nano is, produce one (1) gramme of carbon
monoxide and 0.08 gramme of nitrous oxide. To convert them into CO2 equivalent, a conversion
factor recommended by IPCC (Intergovernmental Panel on Climate Change) of which Mr.
Pachauri is chairman, is applied. It is 3 for carbon monoxide and 310 for nitrous oxide. Once the
entire math’s is done, we get 30 grammes per kilometer.
So each time the Tata Nano moves a kilometer, it will release 30 grammes of CO2
equivalent material into the atmosphere. This is 40% less than what all others cars produce (50grammes/kilometer or more) — and there are more than 5 million cars in India today. But let us
take the argument into a zone where the naysayers would be comfortable: on the total amount of
CO2 equivalent that Tata Nanos will produce over the next five years. This involves a bit of some
assumptions.
So assume that Tata will from the next year sell 1,00,000 cars a year for five years and
reach a total of 5,00,000 - half the size Mr. Tata thinks a car at one-lakh price point may sell.
Now let us take a range that the Tata Nano runs between 1,000 kilometers and 8,000 kilometers
a year. If all those half-a-million cars run 1,000 kilometers then the total CO2 produced will be
15,000 tones annually.
If they all run 8,000 kilometers then the total CO2 equivalent will be 1,20,000 tones. In
reality, the figure should be closer to 25-30,000 tones because our assumptions of car sales and
annual mileage are on the higher side.
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So are these numbers large? Taking the worst case - 5, 00,000 on roads and each running
8,000 kilometers annually - the total CO2 equivalent will be less than 8% of India's total CO2
emission. And if we take a more realistic assumption then it will be less than 1% of India's total
CO2 emission. Environment guys would do well to go after the other 99%.
# Source: As published in The Economic Times — January 11, 2008
1 lakh car drives 1 billion dreams
Little Nano, the next big thing 20 km per liter; 21% more space than Maruti 800; Bharat III
emission norms.
NEW DELHI, SINGUR, JANUARY 10: Ending a four-year wait and bringing the dream of
car ownership closer to millions, Tata Motors today unveiled the "People's Car" at a show here
watched by the international automobile industry. Called Nano, the car will cost Rs 1 lakh as
promised by the company which also assured meeting all safety and emission norms.
"Since we started the project four years back, there has been a steep increase in input
cost but a promise is a promise," said Tata Group chief Ratan Tata after displaying his dream
project at the Ninth Auto Expo.
"I observed families riding on two-wheelers — the father driving the scooter, his young kid
standing in front of him, his wife seated behind him holding a little baby. It led me to wonder
whether one could conceive of a safe, affordable, all-weather form of transport for such a family,”
Tata said.
"Tata Motors' engineers and designers gave their all for about four years to realize this
goal. Today, we indeed have a people's car, which is affordable yet built to meet safety
requirements and emission norms, to be fuel efficient and low on emissions. We hope it brings
the joy, pride and utility of owning a car to many families who need personal mobility." This small
car — Nano is 20 per cent shorter in length than the Maruti 800 but Tata claims it has 21 per
cent more space — is powered by a 623 cc rear-mounted engine and will travel 20 km per liter.
The car will cost Rs 1 lakh at the dealer-end but Attract Value-Added Tax and transportation
cost.
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Apart from the standard version, Nano will also come in two deluxe models with air
conditioning. While critics had been skeptical about the car meeting safety and emission norms,
Tata said Nano will meet Bharat Stage-III emission norms and can also meet the stringent Euro
4 norms. The car has also gone through a full frontal crash test as per Standard norms, he said.
Tata Motors expects two-wheeler riders to buy the car that costs half as much as those
currently in the market. With just 8 people in 1,000 owning a car in India, there is huge potential
to upgrade bike and scooter owners who bought about 7 million two-wheelers in 2006-07.
Commerce Minister Kamal Nath said Nano will help the common man shift from two-
wheelers to four-wheelers. "It is a proud moment for India. It demonstrates India's technological
and entrepreneurial ability. The car will help people move from two-wheeler to four-wheeler and
it will leap-frog the two-wheeler. It fulfils the need of the common Indian who aspires to move
from a two-wheeler to a four-wheeler," he said.
Tata also allayed fears expressed by environmentalist R K Pachauri and green activist
Sunita Narain that a car at that price would add more vehicles, leading to higher pollution.
"Pachauri will not have a nightmare and Sunita Narain can also sleep," he said.
On the reasons for choosing the name Nano, Tata said the car was about high technology
and small size. He credited the development of Nano to Tata Motors' engineers, and said it was
the capability and commitment to innovate that realized the dream. In fact, Tata Motors has
applied for 34 patents for aggregate features, such as the two cylinder gasoline with single
balancer shaft.
Asked if the company was looking to export the car as well, Tata said: "The first two-three
years our focus will be India and see the Indian market appropriately addressed." He did not,
however, rule out an overseas launch of the car.
Tata revealed what enabled it to cut down costs and score over the entire global auto
industry. "We took the standard Maruti 800 as the base model and worked backwards on how
we can reduce costs. We decided and found out that a tight package that will mean a smaller,
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meaner car, lighter engine and higher fuel economy will do the trick," Tata said. "The decision to
make it a rear engine driven was precisely to reduce the length of the car."
But why did other car makers miss the trick? "I cannot say for others but what is important
is whether you have desire strong enough to prevent the odds from overwhelming you,"Tata
said.
At the site of the plant in Singur, West Bengal, where the first Nano will roll out, it is a race
against time. Over 2500 people have been working in two shifts behind a guarded perimeter to
complete the factory in time. Soon another shift will be introduced to make up for any backlog in
work caused during the last heavy monsoon.
"Work will soon start in three shifts. Over 75 per cent work of the factory is complete and
we hope by September of this year the first car will roll out of the factory,"' a top official of West
Bengal Industrial Development Corp (WBIDC) told The Indian Express. A major portion of the
work involving the setting up of a 230 KV substation on the project site to ensure uninterrupted
power supply to the factory and the vendor park has almost been completed by ABB.
In order to save the site from inundation in the future, the state government has revived the
30-year-old Ghiya Kulti irrigation project at a cost of Rs 170 crore.
Next to the 645-acre plot that will have the main car plant, a vendor park is coming up on
290 acres to house the proposed 55 ancillary units. Already, 14 have started setting up theirs.
These include Lord Swaraj Paul-owned Caparo Engineering Pvt Ltd, Rasandik Engineering
Industries Indian Ltd, Rucha Engineers Pvt Ltd and Sharda Motor Industries Ltd. While Rasandik
has plans of investing Rs 55 crore in the first phase of work at the vendor site, Rucha
Engineering has committed Rs 50 crore for their facility at the vendor park. WBIDC has set up a
camp office at the project site where so far 2432 persons from displaced families have got their
names registered.
# Source : As published in Indian Express on January 11th, 2008
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CHAPTER: 4
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ROLE AS A MARKETING RESEARCHER
I was a researcher of the Tata’s NANO car in which I research Perception of people on
“NANO”. I had use questionnaire as a tool in my marketing research.
Under my project was the perception of Tata Nano in JAIPUR city. I have visited different
showrooms of Two Wheeler & Four Wheeler in these areas to collect the data. I educated every
customer before filling the questionnaire about my project work. Like this task of filling of the
questionnaire was finished. After that I analyses the entire questionnaire and get the rea
perception of the people about “NANO” in JAIPUR city, and I also came to know the acceptance
level of “NANO” in JAIPUR city.
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CHAPTER: 5
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CHAPTER: 5
Marketing Research Problem :
To find out the consumer perception on NANO car in JAIPUR city.
Scope of the Study :
This study would be useful for companies to know what people perceive and thinking abou
“Small Fight” that is NANO.
This study would be useful to other students as a secondary data.
This study would be useful to form strategies according to perception of people about
NANO.
Objective of the Study :
To know the consumer perception on “NANO” car.
To find out the Acceptance level of people.
To find out the awareness level about “NANO” car.
To know about factors affecting purchase decision of “NANO”.
To know how purchase decision of “NANO”.varies from different Income group.
Limitation of the study :
I will have to rely upon the information given by respondents, which may not be fully true
This study will be limited to only some areas of JAIPUR City.It is only for short period of time.
Lack of professional approach since researcher is a student.
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CHAPTER: 6
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CHAPTER: 6
Instrumentation:
SOURCES OF DATA COLLECTION
PRIMARY:
For my survey primary data have been used as a questionnaire to collect the data.
SECONDARY :
The secondary date has been collected from the following modes:
● Magazines● Data through internet sources
RESEARCH DESIGN
Research Design is the arrangement for conditioned for data collection & analysis of data
in a manner that aims to combined relevance to research purpose with economy in procedure.
A research design is a master plan or model for the conduct of formal investigation. It is
blue print that is followed in completing study.
The research conducted by me Is a descriptive research. This is descriptive in nature
because study is focused on fact finding investigation in a well structured form and is based on
primary data.
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RESEARCH PLAN
Type of study: For completing my study I have gone for sample study because looking at
the size of population & the time limitation it was not convenient for me to cover entire
population. Hence I have gone for sample study rather than census study.
SAMPLING PLAN
A sample design is a definite plan for obtaining a sample from a given population. It refers
to the technique or the procedure that researcher would adopt in selecting items from sample.
Sampling plan may as well lay down the member of items to be inched in the sample i.e. the sizeof sample. Sampling plan is determined before data are collected.
STEPS IN SAMPLING PLAN
Sampling frame :
The list of sampling units from which sample is taken is called sampling frame. JAIPUR
city map was studied thoroughly and samples were selected from the places in a scattered
manner to get effective result.
Sampling Size:
Total sample size is 300 .The following sample size according to area wise is as follows:
40 TONK ROAD
20 SITAPURA
35 PRATP NAGAR
30 MANSAROVER
30 MALVIYA NAGAR
35 VAISHALI NAGAR
40 JAGATPURA
30 GOPALPURA
40 SANGANER
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Sampling Procedure:
The selection of respondents were accordingly to be in a right place at a right time and so
the sampling were quite easy to measure, evaluate and co-operative. It was a randomly area
sampling method that attempts to obtain the sample of convenient elements.
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CHAPTER: 7
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CHAPTER: 7
(Data collection by Observation & Interview method)
FIELD WORK:
I have collected the data through medium called questionnaire collecting the responses
from 300 people in all. I had done my field work in the following area. TONK ROAD, SITAPURA,
PRATAP NAGAR, MANSAROVER, MALVIYA NAGAR, VAISHALI NAGAR, JAGATPURA,
GOPALPURA, SANGANER.
I started my project very first educating the respondents about my entire project, and ask
them to co-operate with me. Mostly all the respondent were aware of this type of surveys. So I
didn’t face any type of difficulty during my project in the process of explaining and taking there
responses on the questionnaire.
QUESTIONNAIRES:
Through the questionnaire I was able to get an insight in to the consumers mind and to
learn about there perception about “NANO”. All of the questions mentioned in the questionnaires
were helpful to me in knowing the consumer acceptance level.
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CHAPTER:
8
CHAPTER: 8
Interpretation and analysis
This has been classified in to two sections:
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Section 1
Table : 1
GENDERWISE Bi-furcation
NO. FREQUENCY PERCENTAGE
MALE 245 81.67FEMALE 55 18.33
TOTAL 300 100%
Graph: 1
245
55
81.67
18.33
0
50
100
150
200
250
FREQUENCY PERCENTAGE
MALE
FEMALE
The above mention graph which clearly states that out of 300 respondents , 245 are
Male and 55 respondents are Female .
Table : 2
AGE DISTRIBUTION
NO. FREQUENCY PERCENTAGE
18-30 100 33.0030-50 150 50.00Above 50 50 17.00
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Graph : 2
100
150
50
33
50
17
0
20
40
60
80
100120
140
160
FREQUENCY PERCENTAGE
AGE
18--30
30--50
Above 50
There are more customers in the age group of 30-50 and 18-30 covered under this study.
Percentage wise graph has given here.
Table : 3
INCOME PER MONTH:
NO. FREQUENCY PERCENTAGE
5,000 – 10,000 80 17.5010,000 – 15,000 119 45.0015,000 – 20,000 66 20.00Above 20,000 35 10.00
TOTAL 300 100%
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Graph : 3
80
119
66
3529.66
39.66
2211.66
0
20
40
60
80
100120
FREQUENCY PERCENTAGE
INCOME PER MONTH
5000-10000
10000-15000
15000-20000
Above 20000
The above graph shows the different Income Group of respondents.
Table : 4
OCCUPATION :
NO. FREQUENCY PERCENTAGE
Govt. Employee 95 31.66Pvt. Employee 80 26.66Business man 39 13.00Professional 51 17.00House Wife 09 3.0Student 16 5.0Retired 11 3.66
TOTAL 300 100%
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Graph : 4
95
80
3951
9 1611
31.6626.66
13 17
3 5 3.66
0
10
2030
40
5060
7080
90100
FREQUENCY PERCENTAGE
OCCUPATION
Govt. Employee
Pvt. Employee
Business Man
Professional
House Wife
Student
Retired
I have tried to cover all the people from different sectors. Here in my study there are more
no of Govt. and Pvt. sector Employee covered than other sector.
SECTION – 2
Table : 5
Showing Ratio of Respondents having Two Wheeler.
No. FREQUENCY PERCENTAGE
Yes 275 91.66
No 25 8.33
TOTAL 300 100%
Graph : 5
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275
25
91.66
8.33
0
50
100
150
200
250
300
FREQUENCY PERCENTAGE
Do you have any vehicle ?
YesNo
From the above I analyze the No. of people having vehicle. There are about 92% of people
having vehicle and only 8.33% of respondents do not having any vehicle.
If yes than specify….
Type of Vehicle FREQUENCY PERCENTAGE
Two Wheeler 210 76.36Four Wheeler 54 19.63Any other 11 4.0
TOTAL 275 100%
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210
54
11
76.36
19.634
0
50
100
150
200
250
Frequency Percentage
Two Wheeler
Four Wheeler Any other
The above graph shows that mostly respondents who covers under my study having Two
Wheeler with 76.36% and it is followed by respondents who’re having Four Wheeler with 19.63%
and lastly with 4% of respondents who are having vehicle other than two wheeler or Four
Wheeler.
Table : 6
Showing willingness of respondents to purchase of Rs. 1 Lakh car.
No FREQUENCY PERCENTAGE
Yes 225 75.0No 75 25.0
TOTAL 300 100%
Graph : 6
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225
75 75
25
0
50
100
150
200
250
FREQUENCY PERCENTAGE
Would you like to go for Rs. 1 lakh
car ?
YES
NO
The above graph shows that out of 300 respondents 225 respondents with 75% like to
purchase Rs. 1 Lakh car and only 75 respondents with 25% do not want to purchase Rs. 1 Lakh
car.
Table : 7
Showing Awareness level of “NANO”.
FREQUENCY PERCENTAGE
Yes 300 100No 0 -
TOTAL 300 100%
Graph : 7
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300
0
100
0
0
50
100
150
200
250
300
FREQUENCY PERCENTAGE
Are you aware of Tata’s “NANO” car ?
YES
NO
The above graph shows that out of 300 respondents all the respondents are aware about
the “NANO”.
Table : 8
Showing the perception of respondents about “NANO”
No FREQUENCY PERCENTAGE
Yes 272 90.66No 28 9.33
TOTAL 300 100%
Graph : 8
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272
28
90.66
9.33
0
50
100
150
200
250
300
FREQUENCY PERCENTAGE
Do you like the TATA’s Rs 1 Lakh car
The “NANO” ?
YES
NO
From the above graph we can see that there are 90.66% respondents like Tata’s “NANO”
car. in that respondents who do not want to go for “NANO” but even they like “NANO” are also
covered, very few respondents with 9.33% has given negative response to the “NANO” and it is
very less compare to overall sample size.
HYPOTHESES
Ho: Preference for The “NANO” is independent to income.
H1: Preference for The “NANO” is dependent on income.
α = 5%
PREFERENCE 5,000-
10,000
10,000-
15,000
15,000-
20,000
Above
20,000YES O : 39
E :
O : 76
E :
O : 23
E :
O : 13
E :
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(35.23) 59.90 35.23 (20.64)NO O : 31
E :
(34.77)
O : 43
E :
(59.10)
O : 47
E :
(34.77)
O : 28
E :
(20.36)
TOTAL 70 119 70 41
X2 = (O- E)2 O= Observed frequency
E=Expected frequency
X2 = 23.7
Rejection criteria = Ho is rejected if calculated X2cal is > X2 tab
Here calculated X2 = 23.7 & X2 tab (3,0.05) = 7.815
So, Ho is rejected.
So here I can conclude that preference for “NANO” is dependent on income of respondents.
Table : 9
Showing respondents perception to purchase “NANO” within 1 to 2 year.
No FREQUENCY PERCENTAGE
Yes 213 71.0No 77 25.66Can’t Say 10 3.33
TOTAL 300 100%
Graph : 9
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213
77
10
71
25.66
3.330
50
100
150
200
250
FREQUENCY PERCENTAGE
Do you plan to buy a “NANO” in the next
1 to 2 year ?
YES
NO
CAN'T SAY
The above graph shows the respondents ratio who want and who do not want to buy“NANO” in the next 1 to 2 year. There are 213 respondents with 71% are planning to buy “NANO”
in the next 1 to 2 year. Where as 77 respondents with 25.66% like to buy “NANO” after 2 year
period. There are less no. of respondents are still not think to buy “NANO” in the next 1 to 2 year
with 3.33%.
Table : 10
Perception of Respondents about model of “NANO”.
FREQUENCY PERCENTAGE
Standard (Without
AC)
163 54.33
Deluxe (With AC) 137 45.66
TOTAL 300 100%
Graph : 10
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163137
54.3345.66
0
20
40
60
80
100
120
140
160
180
FREQUENCY PERCENTAGE
Which Model would you go for ?
Standard
Deluxe
The above graph shows the preference of the respondents regarding two different model o“NANO” car while purchasing. Here from the above graph we can see that the No. of respondents
who’s given their preference for car model are equally for each model. Respondents who are like
to go with Standard Model are 163 with 54.33% and respondents who prefers Deluxe Model are
137 out of 300 with 45.66%
Table : 11
Perception of respondents regarding mileage (21 kmph) of “NANO”
FREQUENCY PERCENTAGE
Very good reason to buy 187 62.33Good Enough for Small
Town
92 30.66
Not Enough 21 07.00
TOTAL 300 100%
Graph : 11
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187
92
21
62.33
30.66
7
0
50
100
150
200
FREQUENCY PERCENTAGE
What do you think of it’s Mileage of 21 KM/Liter ?
Very GoodReason
GoodEnough
NotEnough
The above graph shows that the out of 300 respondents mostly respondents like the
mileage of “NANO” car. Here, out of 300 respondents 187 select Mileage as a “Very Good
Reason” with 62.33% , 92 respondents think that this mileage of the car is “Good Enough” for smal
town with 30.66% and at last very few respondents believe that this mileage is “Not Enough” with
7%. Ranking of attributes about “NANO” in order to preference given by respondents, while
buying “NANO”
Table : 12.1 (BRAND NAME)
BRAND
RANK FREQUENCY PERCENTAGE1 70 23.332 149 49.663 56 18.664 25 8.33
TOTAL 300 100
Graph : 12.1
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ATTRIBUTES RANKING
BRAND
RANK, 3,
18.66%
BRAND
RANK, 4,
8.33%
BRAND
RANK, 1,
23.33%
BRANDRANK, 2,
49.66%
Table : 12.2
(AFFORDABILITY)
RANK FREQUENCY PERCENTAGE1 159 53.00
2 95 31.663 46 15.33
TOTAL 300 100
Graph : 12.2
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ATTRIBUTES RANKING
RANK, 3,
15.33% RANK, 2,
31.66%
RANK, 1,
53%
1
2
3
Table : 12.3
(SHAPE/DESIGN)
RANK FREQUENCY PERCENTAGE1 31 10.332 27 9.0
3 10 3.334 44 14.665 188 62.66
TOTAL 300 100
Graph 12.3
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ATTRIBUTES RANKING
RANK, 5,
62.66%
RANK, 4,
14.66%
RANK, 3,
3.33%
RANK, 2,
9%
RANK, 1,
10.33% 1
2
3
4
5
Table : 12.4
(SAFETY)
RANK FREQUENCY PERCENTAGE1 25 8.332 17 5.663 132 44.004 79 26.335 47 15.66
TOTAL 300 100
Graph : 12.4
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ATTRIBUTES RANKING
RANK, 5,
15.66%
RANK, 4,
26.33%
RANK, 3,
44%
RANK, 2,
5.66%
RANK, 1,
8.33% 1
23
4
5
Table : 12.5
(COMFORT)
RANK FREQUENCY PERCENTAGE1 15 5.02 12 4.03 56 18.664 152 50.665 65 21.66
TOTAL 300 100
Graph 12.5
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ATTRIBUTES RANKING
RANK, 5,
21.66%
RANK, 4,
50.66%
RANK, 3,
18.66%
RANK, 2,
4%
RANK, 1,
5% 1
23
4
5
Table : 12
Perception about NANO on Second hand car
No FREQUENCY PERCENTAGE
Yes 267 89.00No 33 11.00
TOTAL 300 100%
Graph : 12
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267
33
89
11
0
50
100
150
200
250
300
FREQUENCY PERCENTAGE
Would you like to buy Second hand car instead
of NANO ?
YES
NO
The above graph shows the respondents preference when they think for NANO over
second hand car. Here, graph shows that out of 300 respondents 267 respondents would like to
purchase “NANO” instead of any second hand car with 89%, and respondent who would like to go
for second hand car instead of Tata’s “NANO” are very few, there are only 33 respondents prefers
these with 11%.
Table : 13
Showing Reason to like “NANO” on second hand car
FREQUENCY PERCENTAGE
Its new/ NewEntry
144 48.00
Mileage 96 32.00Running cost 45 15.00Good looks 15 5.0
TOTAL 300 100%
Graph : 13
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144
96
45
15
48 3215
50
20
4060
80
100
120
140
160
FREQUENCY PERCENTAGE
Why do you prefer a NANO to a
second hand car ?
Its New
MileageRunning cost
Good Looks
Out of 300 respondents 144 respondent would like to purchase NANO instead of second
hand car because its New and of course due to its new entry in to the market with 48%, where as
96 respondent prefer mileage is the main reason while selecting between second hand car and
NANO with 32% it is followed by 45 respondents with 15% would like to with prefer NANO instead
of second hand car due to its better Running cost, finally 15 respondents would like to go for
NANO due to its Good looks with 5%.
Table : 14
Showing how purchase decision of “NANO” affect on Status of respondents
No FREQUENCY PERCENTAGE
Yes 189 63.00No 111 37.00
TOTAL 300 100%
Graph : 14
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189
111
63
37
02040
60
80100120
140160
180200
FREQUENCY PERCENTAGE
Do you think that purchase decision of
NANO will affects your status ?
YES
NO
Here the above graph shows that out of 300 respondents 189 respondents with 63% think
that Purchase decision of NANO would be affect to their status. Here respondents were thinking in
both the sense positively as well as negatively. Its followed by the respondents who were thinking
that purchasing decision on NANO will not affect to their status, there are 111 respondents with
37% falls in this category.
Table : 15
Showing level of respondents belief about
No FREQUENCY PERCENTAGE
Yes 199 66.33No 101 33.66
TOTAL 300 100%
Graph : 15
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199
101
66.33
33.66
0
50
100
150
200
FERQUENCY PERCENTAGE
Do you believe that “NANO” is a
dream car of yours ?
YES
NO
The above graph shows that out of 300 respondents 199 respondent with 66.33% believe
that Tata’s “NANO” is there Dream car, while 101 respondents with 33.66% do not think that
“NANO” is their Dream car.
CHAPTER: 9
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CHAPTER: 9
I have found in my study that most of the respondents who like to go for TATA’s “NANO”
belongs to income group of 5000 to 15000, so it can be said that “NANO” will be most welcome by
this income group of people.
Most of the respondents who belongs to the Private Sector or Govt. Sector having greater
acceptancy level for “NANO” in JAIPUR city and they would also like to go for “NANO”.
I have found that all the respondents of JAIPUR City which covered under my study are wel
aware about TATAs “NANO”.
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In my study I have found that above 90% of respondents like the TATA”s “NANO” car.
Those respondents who would not like to go for “NANO” , they are also like the TATA”s “NANO”
for various reason like affordability, brand name, shape/design this shows the preference of the
respondents in JAIPUR city.
More than half of the respondents would like to buy “NANO” in next 1 to 2 year.
Respondents who like to buy “NANO” are curiously waiting for its launching, respondents like to
go for “NANO” as it’s most affordable cost and of course due to its Brand Name that is TATA.
Respondents also prefer “NANO” due to its promise of good mileage about 21KM/Litre so,
if TATA will fulfill the promise and if continuously maintain the mileage of its car the “NANO” than
it’ll surely helpful to attract more customer.
Respondents who are preferring the second hand car , after the launching of TATA’s Rs.
1lakh car the “NANO”, they would also like to go for “NANO” due to its low cost and of course
due to its attractive
shape and design ,
its newness
as compare
to second hand car.
More than half of therespondents believe that “NANO” is their Dream Car, so it shows TATA’s “NANO” car will bewarmly welcome by the people of JAIPUR City.
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“SWOT” ANALYSIS
Strengths
Market Penetration Pricing, One Lakh Car Discover New Market (low Segment)Block Buster ProductReputed Company – TATA Motors Pvt.Ltd.
Weakness
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Low Space in Car
Engine in back Side
Not Suitable in rural area
Speed constraint factor
Opportunities
TATA motors plan to launch Europa similar to NANo in European Market.
ThreatsLow Segment Car
Sale of second hand vehicle
Other companies like Bajaj Reno, Mahindra and Renault plan to launch low segme
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CHAPTER: 11
CHAPTER: 11
During my study I have done a project on perception of people on “NANO” car in JAIPUR
city. I had learn a lot and get opportunity to know what consumer actually thinks and what they
perceive about TATA’s “NANO” because I had done field work and I was in between the people
only. I gain a practical knowledge which I haven’t get any where.
I had used a Questionnaire as a tool through which I had gathered a lot of information. I fill
up 300 questionnaire from the 9 areas of JAIPUR city, under my study I have covered different
class of people to know their perception and acceptance level for “NANO”. I analyze from my
questionnaire that 100% respondents aware from the TATA’s upcoming “NANO” car, and out of
300 respondents 90% respondents like the “NANO”. I also found that 71% of respondents would
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like to buy “NANO” in next 1 to 2 year, It shows the acceptance level of the people of JAIPUR city
and it’s good sign TATA. Respondents who like the “NANO” or want to buy are preferring the
“NANO” due to its Affordability and Brand Name.
All this information will be benefited to know the Perception and Acceptance level of people
in JAIPUR City. It can be also benefited to the TATA MOTERS as I had mention all the likes and
dislikes of the respondents in my Study.
CHAPTER: 12
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APPENDIX
Dear Sir/Madam,
I am the student of Poornima College of Engineering- DMS and I am conducting a survey
on “The Study on Perception of people about NANO car in JAIPUR city” “The following
questionnaire has been drafted to make me understand the needs and expectations of the
customers. Therefore I request you to kindly spare some time and give me the following
information. I assure you that this data will not be misused and will only be used in the study.
Personal Details
Name……………………………………………………………………………………………...
Age……………………………………………Income……………………………………..........
Education……………………………………..Profession…………………………………………
Gender………………………………………..Contact No.…………………………………….
EmailId……………………………………………………………...............................................
(1) Do you have any Vehicle ?
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Yes No
If Yes than Specify,
Two Wheeler Four Wheeler
Any other_____________
(2) Would you like to go for Rs. 1lakh car ?
Yes No
(3) Are you aware of Tata’s “NANO” car ?
Yes No
(4) Do You like the Tata’s Rs. 1 Lakh car The “NANO” ?
Yes No
(5) Do you plan to buy a “NANO” in the next 1 to 2 year ?
Yes No
Can’t say
(6)Which model would you go for ?
Deluxe (with AC) Standard (without AC)
(7) What do you think of it’s mileage of 21KM/Litre ?
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Very Good & Not enough
reason to buy
Good enough for small town
(8) Rank following attributes of in order to preference given by you , while buying “NANO”
Brand Name
Shape/Design
Safety
Affordability
Comfort
(9) Would you like to buy a second hand car instead of NANO ?
Yes No
(10) Why do you prefer a NANO to a second hand car ?
It’s new Mileage
Running Costs Good looks
(11) Do you think that Purchase decision of NANO will affects your status ?
Yes No
(12) Do you believe that NANO is a dream car of yours ?
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Yes No
Place………………….. Sign……………………..
Date…………………...
CHAPTER: 13
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BOOKS :
1) Philip kotler & hiller (2008) marketing management 8th edition: pearson
2) Berman , Berry and Joel r Evans(Oct-1997)Retail management: A strategic approach
8th edition Englewood cliffs NJ printicehall
3) Art kleiner George Roth,” How to Make experience your company’s best teacher”
Harward business review,
4) Boris Groysberg, Aashish Nanda ,and Nitin Nuhria ( may2004) “the risky business of
hiring stars “, Harward business review .
5) Country analysis 1997 “A framework to identify and evaluate the national business
environment “ Harward business review.
6) Benson P Shapiro V Kasturi Rangan , john J. svioula , (Aug. 2004 ) “ staple your self to
an order “ Harward” business unit review , July Aug. 2004
7) Derrel k. Rigby, Fredrick f reichheld, Philip schefter,(Feb - 2002) “avoid the four perils of
CRM” Harward business review.
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MAGAZINES
OUTLOOK BUSINESS (9TH FEB, 2008)
BUSINESS STANDART (18TH FEB, 2008)
4P’S OF BUSINESS AND MARKETING (28TH MARCH, 2008)
INTERNET :
http://www.tatamotors.com