After having successfully launched the low cost Tata Ace truck in 2005, Tata Motors began development

of an affordable car that would appeal to the many Indians who drive motorcycles.[4] The purchase price of this no frills auto was brought down by dispensing with most nonessential features, reducing the amount of steel used in its construction, and relying on low cost Indian labor.[citation needed] The introduction of the Nano received much media attention due to its low price.[5] [edit]Expectations

and effects

One study, by Indian rating agency CRISIL, thought the Nano would expand the nation's car market by 65%.[6] It was anticipated that its 2009 launch would greatly affect the used car market, and prices did drop 25-30% in the lead up to the launch.[7] Sales of the Nano's nearest competitor, the Maruti 800, dropped by 20% immediately following the unveiling of the Nano.[8] It is unknown if the Nano has had a lasting effect on the prices of and demand for close substitutes, however. In July 2012, TATA Group Chairman, Rattan Tata while admitting that NANO wasted an early opportunity due to initial problems, said that it has an immense potential in the developing world.[9] [edit]Singur

factory pullout

Main article: Tata Nano Singur controversy Tata Motors announced in 2006 that the Nano would be manufactured in Singur, West Bengal.[10] Local farmers soon began protesting the forced acquisition of their land the new factory entailed.[10] Tata first delayed the Nano launch and later decided to build the car in a different state (Gujarat) instead.[11] [edit]Price
Wikinews has related news:World's cheapest car launched in India, will go on sale in April

Announced as the least expensive production car in the world, Tata aimed for a price of one lakh rupees, or 100,000, which was approximately $2,000 US at the time.[12] Only the very first customers were able to purchase the car at that price, however, and, as of 2012, the price for the basic Nano is around 150,000.[13] Increasing material costs may be to blame for this rapid rise in price.[14]

Compared to the Volkswagen Beetle it has a relatively low price. In 1990, the price of the Beetle from Mexican factories was $5,300,[15] worth $9,428 today. The Ford Model T's initial price was about $850, equivalent to $21,987 today.[16] [edit]Cost

cutting features

The car's exterior was designed at Italy'sInstitute of Development in Automotive Engineering.

[4]

The Nano's design implements many measures that make its manufacture cheap.

The Nano's trunk is only accessible from inside the car, as the rear hatch does not open.[17] One windscreen wiper instead of the usual pair[5] No power steering, unnecessary due to its light weight[5] Three lug nuts on the wheels instead of the usual four[18] Only one wing mirror[5] Radio or CD player is optional[5] No airbags on any model[19] 624cc rear engine has only 2 cylinders[5] No air conditioning in base model[5]

The media frenzy around the unveiling of Tata Motors Nano, may drown two of the most significant aspects of this project - firstly, it is a completely new product, which aims to make personal transportation accessible to those who could not afford a car earlier; secondly, and more importantly, it provides a glimpse of the manufacturing revolution that has largely bypassed India, so far. While Tata Motors has a long history of making commercial vehicles, it launched its first passenger car only in 1998. In the last ten years, it has produced a million cars, but remains a relatively small player in the passenger car segment. That such a minor player on the global stage can so radically reengineer a product as to access new customers, while meeting international safety standards, makes it an unqualified managerial success. Doubtless, it has made significant technological leaps too, and there is some talk of possible patents as well. Today, it is widely accepted that mobility and communication are critical to economic and social participation. Yet, in most poor countries, low-cost public transport is uncertain or non-existent, and many poor families have to risk life and limb by braving city traffic on two-wheeled scooters or motor-cycles. Exactly a century ago, in 1908, the Ford Model T put America on wheels. The assembly line off which it rolled increased productivity so much that a worker could afford to buy the car with four months' worth of wages. At the same time it shaped American sociology, by showing how personal mobility greatly enhanced personal autonomy. It is a strange coincidence that the Nano is priced very similarly to the Model T - its price in 1920s would equate to $ 3000 in 2006 dollars. And the Tata Nano will cost about $ 2500. Of course the Nano is a huge technological advance, packing 33 hp to the Model T's 20, with a fuel efficiency of 20 km. to the liter, compared to the Model T's 5 to 9. But the most significant fall-out of Nano may be the realization that low cost manufacturing is not the domain of China alone. Like Ford T, Tata Nanos real contribution may be to demonstrate the competitiveness and technological viability of manufacturing in India. The industrial revolution may yet come to India, riding the Nano; a century late, perhaps, but better late than never. Of course, much more economic reform is necessary if India is to experience the much needed industrial revolution. But Tatas Nano gives us a glimpse of the possibilities. Not surprisingly, there are many who have expressed concerns about the prospect of the masses accessing personal automobiles. The issues they raise range from the impact on oil prices and a concern for global warming, to traffic congestion. Most such commentators have not been known to eschew their personal automobiles, or other modern conveniences, but have no qualms in frowning upon the masses enjoying some of the same benefits. This desire to keep others off the life-boats of their standard of living is a common feature of many who claim to have social or environmental concern in their hearts. One fact worth reminding them of is that transportation is one of the biggest expenses faced by rural poor seeking health care. The opposition to Nano is also an illustration of the head-in-the-sand mind-set, which pits rising demand for consumption against environmental conservation. In fact, as more Indians are able to afford more cars, the scale of consumption will help improve the technology, improve efficiency and clean up the environment. It is not a coincidence, that Toyota's ascent up the world auto league has been accompanied by its pioneering efforts in new technologies and innovation. Though counter-intuitive, it is true of most areas of enterprise that only enhanced scales of consumption lead to improvement in efficiency - in this case, easily measured by tail-pipe emission. It is worth noting that while Toyota sold well over 9 million vehicles in 2007, Tata Motors took ten years to sell its millionth passenger car.

nterview transcript
At the Geneva Motor Show 2012, Mr Ratan Tata, Chairman, Tata Motors spoke exclusively to NDTV's auto expert Siddharth Vinayak Patankar about his 'baby car' Nano. He said that a vision for Nano has been achieved but there is still a lot of scope for upgrading the Nano. He also talked about how the car needs further improvements - both mechanically and in terms of its image.

Below is a complete interview. Also watch the accompanying video here.

The global automotive industry meets once a year here in Geneva to take stock of the work has been done and to also assess some of the concern areas that are plaguing the sector and of course look forward to the future in terms of the kind of products is been bringing up the new technologies and of course the business environment, one man is a veteran here in Geneva and as in fact been flying the Indian flag high here over a decade now. It is my pleasure to welcome the chairman of Tata Sons, Mr Ratan Tata. Pleasure always sir to see you.
Thank you.

I want to start by talking about the special link that Tata Motors has with the Geneva show. The very 1st time you decided to come here, what was the thinking behind that, Why Geneva, and why not in the other shows? Also what has it meant to you?
My memory of that is little bit blurred. We entered the passenger car field at just about that time and we launched the Indica. And when we did that we had several critics who felt that India could not design its own car without collaboration or a joint venture and if we did it was

going to be a marginal car. So we looked at expressing to the international automotive community that we had done something. Indias 1st car and so an international motor show is the good place to do this. Frankfurt is huge, we felt we would be lost with the noise and Geneva and Paris were two motor shows with kind of the right size attracted people principally car guys. And we chose Geneva. We were able to get a stall and stand in a prominent location on the main floor and that became our starting point. We had to attract attention because who was Tata and what was Indica, as there was no particular interest. So we had the then Indian Miss World as the 1st master of ceremonies at the stands and we attracted a lot of attention. Probably because of her, but we generated a lot of attention to the Indian cars at the stall. We made the programme or the press conference very Indian videos of bullock carts and fabrics etc, which we now dont really do and our stall was a basically looked at by a whole host of people. It was crowded as compared to others so we did reasonably well.

And that met or perhaps exceeded your expectations and what you wanted to do?
Yes but then it provided the base for us to be an exhibitor our models and our new cars and then later concept cars, to register that we are a company that is vibrant and active and was taking its place amongst the car makers of the world.

Now Geneva has the advantage sir of also being neutral territory in the sense that its not a home market to any one car maker. But at the same time you know you find the world press can be very polarized with their views. How did you counter this perception that you are not a serious global player right at the start?
I think we have got to counter that not by participating in shows but by our actual performance at home. The show has given us an international footprint if you might. And the rest has been done by whatever we have done at home.

Now the domestic industry has not been known for bringing out design concepts or design studies, that is something else that you held

dear during the process?

Well lets not entirely true now, with the Auto Expo taking place in India regularly. Its a mini international car show, and the Indian public is being exposed to concept cars, its being exposed to international cars. And I would say that the interest it generates in Delhi is pretty phenomenal.

Especially now I think we have reached a...

They are not buyers but they are certainly interested in cars! (laughs)

Its a huge turn out and I know its nothing like that we can see here, but how have you seen that perception change for the brand? Lets say here at Geneva the kind of interactions you have, the people you meet, 1998 to today, its a different world?
I think there is not been a sense of animosity. There has been 1st patronage and later a very fair acceptance of Tata Motors. As it is and what it can do, and we ourselves have not been overselling or overclaiming our capabilities. So we have been quite measured in terms of what we have done.

When you 1st came here sir, you had the Indica but yet you were an unknown player. At the time you brought like Nano, so much had been written already, there was already so much anticipation around it. So where did you see the greater high and perhaps even greater anxiety for yourself?
Actually thats what most people dont know. I really had a back injury and I was convinced that if we are displaying the Nano to the world they had not seen it I had to be there. Its my baby and so I travelled here on a stretcher with a doctor. And before I spoke and went on to unveil the Nano, he gave me a shot which absolutely numbed me. I didnt even know that Im touching the car! I made my speech, I did the photo shoot, and went back on the stretcher I went to the press conference and then went back on the stretcher to Bombay. It did my back a lot of damage in making that trip. But the reception we got was

phenomenal. You know we had the Koreans and Japanese with cameras looking under the car...

Trying to lift the covers and have a look at the car...I remember...
No no... after they were lifted. And German car makers, and the engineers opening and closing the doors to see whether it was real! And it did everything that you were expecting it to do. And the acceptance was kind of universal. There was no scorn; in fact there was more scorn in India! (laughs)

Yes I think so too, because I saw the reactions in both the places and I think you are right about that! I remember the time when you announced the actual price of the car in Delhi I think thats what everybody was hanging on to?
I wouldnt know, I was a little overwhelmed by the crowds and the media that were present. And maybe it was the price, maybe it was people wanted to watch how the one lakh car would be. Whatever it was, it was overwhelming. Here (in Geneva), it was just showing it to the rest of the world.

What we have seen with the Nano particularly you know, the overall journey, all the trouble at the start and then even all the guys who were trying to knock it down. Today we have reached a stage where you have the 2012 Nano, and its no longer just about the price. The price is not the headline about the car. Thats the good thing? I mean you must be satisfied with that?
The price was really just the issue that we have kept our promise. At the same time the car was supposed to be tremendous value and an affordable family car. That was the buy word and that was what we have achieved. It was never meant to be a cheaper car or the lowest cost car or anything of that nature. Its meant to be able to be within the reach of most Indians and I think we are re-establishing that criteria.

And there is a lot more confidence your dealer community now sees with this car. Every time you come to Geneva, everybody always asks

you: When are we getting it in our market? And I know I have asked you this as well when we met last time! What do you see for that?
We have to be sensitive to the fact that there is a great deal of difference between marketing an affordable car for India and an affordable car for Europe or the United States. And there are certain minimum criteria, affordable cars here have to have or else they become sub-cars. So we have to get the Nano to the level which falls within that category. So we have to upgrade the power of the engine, the crash-worthiness of the vehicle etc. So we are in the process of doing that.

Sir, your vision for the car has been achieved you think?
For the Europe or US?

No, just the overall Nano project.

Yes I think so but it cant go on endlessly. We have lost a lot of time and we have to refresh the image of the Nano.

I would now like you to take us back in time and run us through when the thought of Jaguar & Land Rover first come up on your radar?
We didnt approach Ford, we were approached that they had an interest in selling Jaguar - Land Rover. To me it was particularly interesting because the Range Rover range sat on the top of our SUV range rather nicely, and gave us the strategic fit. To be frank, if I could have separated Jaguar from that I might have done so. But Ford was unwilling to separate the two, so we took them together. And it was just that I didnt know what we could do with Jaguar. Whereas with Land Rover and Range Rover, we obviously had a fit. So it wasnt until we acquired the company that we really understood what we were getting. And we realized that we were getting two brands, and we were getting a tremendous amount of technology and talent that was embedded in the two brands and the people. The technology being utilized like aluminium technology being used, suspension and steering capabilities, and of course road handling at high speeds. I cant say we have adopted and taken over all these attributes, but we are as a company are now

much more exposed to that in our interaction with Jaguar and Land Rover.

And the brands themselves the heritage that they come with in the global industry of course that carries a lot of weight, but what did it mean to you?
See from a strategic perspective, how could an Indian company acquire a company with the standing of an international brand, without spending billions of dollars and having no product to really avail of? So Jaguar and Land Rover have given us the opportunity of own these brands, and any view that we are trying to merge our two branded products together is misinformation. Because the only correct thing to do is to polish these brands, which are longstanding and move them back to the level of glory that they once had which I think we tried to do and keep our brands separate. But the synergy between the two companies in terms of sharing platforms and doing engineering together, packaging etc, has been growing and I dont think we have been forcing that either. But it is genuinely happening. We now assemble the Freelander in India, we are working jointly on engine projects, we are working on sharing platforms so we are moving and learning more about aluminium architecture. And over time I think it will be a very positive thing for the Tata Motors brand, and of course I hope we can continue to give support and commitment to the Jaguar and Land Rover brands internationally.

At the time of the acquisition, or maybe soon after when there was so much said about whether or not it was a right price or not the right price. Through that process sir, you would have also had a window to look at where these brands are going, that I think, we as the press didnt see. Vehicles like the Evoque for example a lot of these were already in the pipeline, so that was a heartening part for you as well?
I have to say that we knew that these were in the pipeline, but we didnt know enough about those products. In other words we didnt have that kind of access to the development or engineering of the company, and we had no idea how the new products would be reacted to in the market. Jaguar and Land Rover were at a cross roads. They were brands that

were not... they didnt have sustainable model ranges, and what we are trying to do now is enhance the range so that the dealerships and the customer base have a much wider choice to choose from, and where volumes can be enhanced so that we get scale.

Markets like China and India then become important clearly?

Yes and Jaguar and Land Rover are now appreciating that India is a relevant market.

And in the case of China Was there a lot of pressure to get into China?
China is now the second largest market for the company and thats pretty phenomenal. We are looking at building a JV in China and no one earlier would have expected that China would be a major market of that nature.

Thats true but in India there is a double connotation to it because not only is it a strategically important market, but in some senses as Ralph (Speth, CEO JLR) has said, it is the second home market too! So is it important to have a strong position in India, you think?
I think it certainly helps, and Jaguar was a nostalgic name and so was Land Rover. Now it is an actual vibrant brand. You now see Land Rovers and Jaguars on the road and the car has had a comeback into India.

Markets like India and China, just the kind of future that these brands now have, you talked about the fact that they need to get bigger and expand globally, Where do you see that future really for the two brands?
I see both these brands being premium brands. I think we have a lot of refining to do in the company to make the brands not only premium but to also support those brands and to make margins on the brands, which we are in the process of doing.

But you will continue to identify any opportunities that come along? I am not just going down the acquisition route that I know everyone is

talking about right now, but you would actively look to grow these brands to being much bigger than what they are today?
Oh yes, absolutely.

The overall business environment has been uncertain, and its the same for the Tata brand or JLR in many ways. But would you say that you are satisfied with the way that the two have managed to combat some of what we have seen over the last few years?
You know I think any brand thats trying to make a comeback is faced with a lot of scepticism. The brands have had troublesome history in terms of reliability etc. But the loyalty of the customers has been pretty phenomenal both here and in the U.S. And if we can rebuild that trust and faith some of which is gone we will then be truly a very successful company.

When you look at the future growth for JLR and the Tata brand, given that we have seen that the global economic environment is uncertain, you cant predict whats going to happen. And you also cant predict in many ways what is going to happen to policy! Government policy or the politics that happen around such issues, whats going to be that one thing that keeps you on track?
I cant truly answer that, but let me say that the greatest concern that a car company should have is that there are so many brands in the market with such variety of products, the greatest danger and challenge might be to ensure that your product range does not become a commodity. If you become a me-too car company and your car is just a me-too car then you are lost in the noise. You have to either technologically, or in terms of reliability, or in terms of attributes, have a car that distinguishes itself from all others. And on top of the list of things you have to do, is to create a car that attracts you in terms of appeal the car is an emotive animal if you may. The housewife sees it, likes it instantly or hates it or a buyer, male buyer sees himself in a symbol of prestige or masculinity or whatever, and wants to have one or he doesnt. And if you fall into the former category of really crossing that bridge or differentiating yourself,

then you have an interesting path and then it is a very very exciting sector to be in!

But right now the worry is that it just may not be enough. There are so many people who are now looking at joint production and you have alliances too is that just the world we live in today?
I think you can still do that.

I think when it comes to Jaguar and Land Rover everyone has always felt that you have had a soft spot for these brands, I want you to tell us if thats true!
I have a soft spot for these brands. I have acquired a great deal of affection for these brands, what we do with them will be a statement of our commitment.

We will be watching very closely you know that! Thank you so much sir for speaking with me.
Thanks very much.