TATA nano

the peoples car

S R Mahto/Tata Steel/Executive MBA/ISM

O P Jhamnani/Tata Steel/Executive MBA/ISM

VISION

VISION
In the beginning of 20th century one visionary
revolutionized Indian economic growth by a
vision to set up 1st integrated steel plant in India.
He was J. N. Tata.
A century later another man continued his legacy
to revolutionize peoples transport with a vision
to provide a low cost peoples car for the general
masses. He also belonged to Tata family and his
name is Ratan Tata
4

Vision
Why doesnt Mr. Tata produce a car that works before he
talks about an Indian car words came in reply to Mr.
Ratan Tata when he vision for an Indian car in
partnership with automotive industries.
Later appeared the Tatas vision as Tata Indica, the biggest
small car with grad success.

Vision
No body took the idea seriously, no body
responded when Mr. Ratan Tata urged to
automobile industry association and
suggested that they join forces and produce
what, at that point Tata called an Asian Car:
large volumes, many nations involved, may be
with different countries producing different
set of parts.
6

THE THOUGHT
In March 2003, Ratan Tata told a Financial
Times correspondent that he was thinking of
making a peoples car that would cost about
INR 1 lakh.
The news instantly made headlines in business
press all over the world.

TATA LEGACY
Tata group is conglomerate having varied
interests in various fields.
Tata brand is ranked 34TH IN WORLD AND IS
Indias most valuable brand valued at US $21.1
billion.
Operations are in more than 80 countries.
More than100 companies, 32 publicly listed.
58% of revenues from outside India.
66% equity held by philanthropic trusts.
8

TATA LEGACY
First Integrated Steel Plant of India, Tata Steel.
First Power Utility company, First HydroElectric Plant- Tata Electric.
First Luxury Hotel for Indians-Hotel Taj
Mumbai.
First Indian Airlines- Tata Airlines(Air India).
First Indigenously designed, developed and
produced car- Tata Indica.
9

TATA LEGACY
First cement plant of India, Indian cements,
later ACC.
First Chemical factory, Tata Chemicals, cracked
formula of Soda ash.
First Indian cosmetic company, Lakme.
First to incorporate 8 hr working day.
Provident fund, Gratuity, profit sharing bonus,
Medical facility for its employees.
10

Tata Motors
Tata Motors is India's largest automobile company, with consolidated
revenues of Rs. 1, 88,818 crores ($ 34.7 billion) in 2012-13. Through
subsidiaries and associate companies, Tata Motors has operations in the
UK, South Korea, Thailand, South Africa and Indonesia. Among them is
Jaguar Land Rover, the business comprising the two iconic British
brands. It also has an industrial joint venture with Fiat in India. With
over 8 million Tata vehicles plying in India, Tata Motors is the countrys
market leader in commercial vehicles and among the top in passenger
vehicles. It is also the world's fifth largest truck manufacturer and fourth
largest bus manufacturer. Tata cars, buses and trucks are being
marketed in several countries in Europe, Africa, the Middle East, South
Asia, South East Asia, South America, CIS and Russia.
11

RATAN TATA
VISIONARY- Vision of making a peoples car
that could be affordable for general mass and
provide safe ride.
RISK TAKER- Accepted the challenge of making
a car costing INR 1 Lakh only although it was
an uphill task.

12

RATAN TATA
LEADERSHIP
SKILLS:
Provided
required
encouragement and guidance to the entire team .
ORGANISING SKILLS- Coordinated the activities at
various level of designing the car.
Decision making: shifted from Singur to Sanand.
HIGH ETHICAL STANDARD: For Ratan Tata
Companies that are not good corporate citizensthose that dont hold to standards and that allow
the environment and the community to sufferare really criminals in todays world.
13

RATAN TATA
BELIEF IN SELF: Although the idea of Rs. one
lakh car was mentioned casually but when it
was reported in newspapers he took it as
challenge and had strong belief that they can
design such car.
MOTIVATOR-He constantly motivated his team
throughout the process of designing to roll out
of Car.
14

RATAN TATA
INNOVATIVE-There are a lot of domestic as
well as International players in auto segment
but no one thought of making a small car that
would replace two wheelers.
DETERMINATION-He showed determination of
going on with the project even when he found
that material cost has doubled and he had to
shift from Singur due to land owners protests.
15

THE JOURNEY
In 2003, a four-member team from Tata
Motors was asked to work on a new project.
The brief was very fluid. "It began as an
advance engineering project.
The idea was to try and create a very low cost
transportation with four wheels it was not
even defined as a car.
What was defined was the cost: Rs1 lakh,
about $2,500.
16

INNOVATIONS
Tata Motors reportedly filed 31 design patents
and 37 technological patents for the Nano.
The power train accounted for half of the new
design innovations.
The vehicles design, a combination of simple
to manufacture panels and plastic moldings,
was devised by the IDEA institute of Italy.
Bosch developed value Motoronic injectors.
17

INNOVATIONS
The engine was build indigenously with
encouragement from Mr. Ratan Tata.
The application work and production
engineering took place in India.
In Steering system, Steel rod was replaced
with steel tube to reduce costs.
The driveshaft has smaller diameter and is
lighter .
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INNOVATIONS
The team looked at other concepts: a door-less
car with a bar as a safety measure, having soft
doors in vinyl with plastic windows, a cloth roof,
two big doors (instead of four). But all these were
turned down by Mr. Tata; he was very clear that it
had to be a complete car.
The directive from Mr. Tata was that the
customer has to perceive value. So there was a
constant tussle in balancing value to customer
and cost to company.
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Features ...

20

21

SINGUR
Tata Motors announced in 2006 that the Nano
would be manufactured in Singur, West
Bengal.
The small car was scheduled to roll out of the
factory by 2008.
The Bengal Government promised to provide
required land for the project.

22

23

What went Wrong at Singur

The Tata Motors site was on the most fertile,
multi crop land in West Bengal.
Approximately 15000 people were making
their livelihood directly from the land and
new jobs created were not enough to satisfy
all of them.
About 30 per cent of the land was acquired
from farmers without consent.
24

What went Wrong at Singur

The state government of West Bengal used 1894
land acquisition act to acquire land. The rule is
meant for public improvement projects.
Although the Kolkata High Court declared the
acquisition prima facie legal there were widespread
protests spearheaded by Mamata Banerjee.

Continuing agitations against the project made it

difficult for Tata Motors to continue with the project.
25

What went Wrong at Singur

On October 3, 2008, after a brief meeting with
the Chief Minister, Ratan Tata declared his
decision to move the Nano Project out of West
Bengal.
The CM of Gujarat, Narendra Modi persuaded
him to relocate the Nano factory to Gujarat.
It took 14 months to build a new factory in
Sanand, Gujarat compared with 28 months for
the Singur factory.
26

THE LAUNCH

The journey started six years ago when we overtook

what looked like just another business... a business to
give Indian families an affordable transport means, a
small car which was very low in cost. It is to the credit
of the team what we have achieved today," said Tata
while launching the car.
Hopefully we will be able to give the young India a car
which was not in their reach to make transport safer
for them. I am pleased to say that our promise is kept
today to provide a car at Rs 1-lakh. The basic car would
be at Rs 1-lakh at the factory gate in Pantnagar," said
Tata.
27

TRUE TO HIS WORDS: Tata Group Chairman Ratan

Tata (L) poses with the newly launched Nano in
Mumbai.
28

Manufacturer
Also called
Production

Tata Nano
Overview
Tata Motors
one-lakh car
2008present

Assembly

Sanand Plant, Sanand, Gujarat, India[1]

Designer

Girish Wagh, Justin Norek, Pierre Castinel[2]

Class
Body style
Layout

Body and chassis

City car
4-door one-box
RR layout
Power train

Engine

2 cylinder SOHC petrol Bosch multi-point fuel

injection (single injector) all aluminum 624 cc
(38 cu in)

Transmission

4 speed synchromesh with overdrive in 4th

Wheelbase
Length
Width
Height

Dimensions
2,230 mm (87.8 in)[3]
3,099 mm (122.0 in)[3]
1,495 mm (58.9 in)[3]
1,652 mm (65.0 in)[3]

Kerb weight

600 kg (1,300 lb)635 kg (1,400 lb)

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PRICING STRATEGY

30

LAUNCHING PRICES
Ex Showroom Pant
Nagar (Rs)

Ex Showroom
Delhi ( Rs)

Ex Showroom
Mumbai ( Rs)

Tata Nano Std (BS2 )

112735

NA

NA

Tata Nano Std (BS3 )

120960

123360

134250

Tata Nano CX Solid Paint 139780

(BS2)

NA

NA

Tata Nano CX Metallic

Paint (BS2)

NA

NA

Tata Nano CX Solid Paint 145725

(BS3)

148360

160320

Tata Nano CX Metallic

Paint (BS3)

148725

151360

163320

Tata Nano LX Metallic

Paint (BS3)

170335

172360

185375

142780

31

1st nano
handed over to
Ashok Bichare,
in July 2009 in Mumbai.

32

Key Benefits to the Customers

AFFORDABLE
Tata Nano is priced around 1 Lakh rupees or 2, 000 Euro.
This price tag is almost half the price of the current
cheapest car in India, Maruti Suzuki 800, which is priced
around 2 Lakhs. Tata Nano is ideal for two-wheeler owners
looking forward to switch to 4 wheelers. Its also suitable for
women, who would find driving a car safer than driving a
scooter.
FUEL EFFICIENT
Tata Nano has a mileage of 21.97 kilometer per liter, under
city road conditions, and 25.97km/L on highways. This
makes Tata Nano a fuel efficient vehicle, which will save
money in the long-term. This mileage comes with a
powerful engine of 623 cc with a maximum speed of
105Kilometers per hour
.
33

Key Benefits to the Customers

SAFE
Tata nano has gone through the full frontal crash test
according to the standard norms.
Although it is 8% smaller than Maruti 800 (the current
cheapest car in India), its 21% more spacious. It is a 5seater, with an ability to carry heavy loads. According to
Auto car India, though Tata Nano weighs a mere 600 kg, its
robust and well-screwed together.
ENVIRONEMENT FRIENDLY
If you think Tata Nano would increase pollution, think again.
Tata Nano emits less carbon than two-wheelers. It also
meets emission norms of BS II, III, IV which are Euro II, II,
IV equivalent.
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Color variants
DIFFERENT COLORS IN ALTO

DIFFERENT COLORS IN MARUTI 800

DIFFERENT COLORS IN TATA NANO

35

Small wonder! Tata Nano drives into Guinness World

Records
"The expedition was accomplished in 10 days (March 21-30 in 2013)
covering 10,218 km in a Tata Nano from Kanyakumari in southern Tamil
Nadu to circumnavigate the country and return to Bangalore," Tata Motors
president Ranjit Yadav said at an event held here.
The car entered the Guinness World Records, breaking the previous record
of 8,046 km.
The car was driven by city-based motoring enthusiast Srikarunya
Subrahmanyam and his team.
India's first Formula One motor racing driver Narain Karthikeyan
felicitated Subrahmanyam and the team for the record achievement on
the occasion.

36

Small wonder!
New Delhi: Its the kind of farewell gift thatll please Ratan
Tata, who steps down as chairman of Tata Sons Ltd on 28
December: Tata Motors Nano is one of Indias 10 best-selling
cars in 2012, edging out such former worthies as its stable
mate Indigo and Hyundais Santro.
In the 11 months ended November, sales of the Nano rose
18% to 74,545 units from the year-earlier period, and that too
in a declining market for petrol cars on account of the huge
price difference between that fuel and diesel.

37

Further Innovations
An upscale Nano concept car called the Europa was
shown at the 2009 Geneva Motor Show.
The Nano CNG eMax is launched in October 2013. It
can run on either gasoline or compressed natural
gas.
Tata has discussed the possibility of producing an
electric version.
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39

nano twist

40

41

Tata Motors launches the New Nano Twist

The New Smart City car with Electric Power Assisted Steering
System,
with cool, young & and trendy features
Key highlights:
Relaxed drive in city traffic:
A comfortable drive at all road speeds with new Electric Power
Assisted Steering (EPAS), backed by brushless motor
technology and Active Return feature
Effortless parking with lowest turning circle radius of 4 metres
Stunning design:
Exciting new Damson Purple signature colour with luxurious
barley beige interiors and chrome accents
New gearshift console
Sporty interiors
Stay connected:
New stylish instrument cluster with Trip Computer and Driver
Information System
Seamless connectivity with Bluetooth for streaming music
Remote keyless entry for safety and comfort
42

nano

international

Tata Nano Europa displayed at Geneva Motor Show, 2009

Date 19 March 2009
43

nano

international

The second-generation Nano is expected to be sold

in the United States by 2015. Tata is aiming for the
Nano to be the cheapest new car in the US.

The original Nano is not street legal in the US, and

cannot legally be sold as a grey market import until
2034, when the original 2009 models receive a 25year exemption from the US Customs and Border
Protection.

44

nano

international
nano

PIXEL the future

45

International competitors
Toyota IQ
Mitsubishi I

Toyota aygo
China's Cherry QQ

46

United Nations Demographic Study

47

GLOBAL MARKET POTENTIAL

Type
Ultra Low
Cost Car

Price

Markets

$2500$5000

Emerging
markets

Market Size
2.3 to 3
million

Description
Produced in
High Volumes
with basic trims.
Achieves cost
levels via
reduced content
and local
sourcing.

Primary Targets

ASIA

AFRICA

LATIN
AMERICA
48

49

PRICING STRATEGY
Tata aimed for a price of one lakh rupees, or
100,000 which was approximately $2,000 US
at the time. Only the very first customers were
able to purchase the car at that price,
however, and, as of 2014, the price for the
basic Nano is around 150,000. Increasing
material costs may be to blame for this rapid
rise in price.
50

CURRENT PRICES
Ex Showroom
Gujarat (Rs)
Tata Nano Std (BS3 ) 152200

Ex Showroom
Delhi ( Rs)
141200

Ex Showroom
Mumbai ( Rs)
156231

Tata Nano CX

191350

185825

197856

Tata Nano LX

217665

210138

222169

Tata Nano CX (CNG) 239223

233275

245812

Tata Nano LX (CNG)

265670

258106

270263

Tata Nano CX (New) 199956

194409

206607

Tata Nano LX (New)

226456

218909

231107

Tata Nano Twist XT

238860

231506

244041
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SALES(in units)
Nominal factory capacity is 250,000 pa

FY 2009-10
FY 2010-11
FY 2011-12
FY 2012-13

30,000 approx
70,432
74,527
53,848

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54

TATA MOTORS PERFORMANCE

Mar'13

Mar'12

Mar'11

Mar'10

Mar'09

TOTAL INCOME 46853.92

54880.64

47511.41

35775.56

26502.21

TOTAL
EXPENDITURE

50129.01

42423.30

31340.46

23937.57

Operating Profit 1717.98

4177.55

4665.14

4032.83

1723.10

EBITDA

4751.63

5088.11

4435.10

2564.64

Profit and Loss

727.68
for the Year

1827.47

1958.94

1421.49

921.51

REPORTED PAT 301.81

1242.23

1811.82

2240.08

1001.26

EPS .95
Annualized (Rs)

3.91

28.55

39.26

19.48

43047.74

3806.18

55

Current market potential

Automobile Exports Trends
(Number of
Vehicles)
Category

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

Passenger
Vehicles

218,401

335,729

446,145

444,326

507,318

554,686

Commercial
Vehicles

58,994

42,625

45,009

74,043

92,663

79,944

Three
Wheelers

141,225

148,066

173,214

269,968

362,876

303,088

Two
Wheelers

819,713 1,004,174 1,140,058 1,531,619 1,947,198 1,960,941

Grand Total 1,238,333 1,530,594 1,804,426 2,319,956 2,910,055 2,898,659

56

Current market potential

Automobile Domestic Sales Trends
(Number
of Vehicles)
Category

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

Passenger
Vehicles

1,549,882 1,552,703 1,951,333 2,501,542 2,618,072 2,686,429

Commercial
Vehicles

490,494

384,194

532,721

684,905

809,532

793,150

Three
Wheelers

364,781

349,727

440,392

526,024

513,251

538,291

Two
Wheelers

7,249,278 7,437,619 9,370,951 11,768,910 13,435,769 13,797,748

Grand Total 9,654,435 9,724,243 12,295,397 15,481,381 17,376,624 17,815,618

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What went wrong?

Singur Issue delayed the project
There were reports of several fire incidents involving the Nano.

It is still too expensive compared with a motorcycle. Also it is

identified as the cheapest car, whereas a secondhand car that
was more expensive when new has more social cachet.
Other safety issues ,failed crash test in Germany in Jan 2014.
Slowdown of economy in recent past.
No fruitful marketing strategy applied. Ratan Tata, chairman
emeritus of the Tata group had admitted that marketing the Nano
as the 'cheapest car' was a mistake.
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CRASH TEST OF NANO

59

60

61

Comparison with nearest competitive car

TATA

nano

The Peoples Car

62

Bright Future
Low cost, price almost half of similar small cars
available in market.
Low parking space required due to compact size.
Height of Car well suited for tall people.
Fuel Efficient, approx 25 km per liter ,best in small
car segment.
Low pollution, CNG version available, BS4 compliant.
Low turning radius of 4m only.
Extended warranty on the car, from 18 months to
four years announced in early December 2010.
63

Thank You
64