Project Nano

THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA.
1. INTRODUCTION 1.1 PROBLEM STATEMENT. The automobile industry in India is still in its growth stage and has the prospects of tremendous growth because of new entrants in the sector and new variants being offered by existing players, moreover the competition in the industry has up to an all time high which will only increase. Therefore, what companies need to do is provide better quality products and services to its customers. The research is conducted to analyse the following, 1. Understand the different of different customers towards the NANO. 2. To find out more about the small car segment where the NANO falls. 3. The impact of the NANO on other major players like Maruti Udyog, Hyundai and Chevrolet. 4. To also find out about the various models of cars that are already available in this segment. 5. To find out if there is any potential competitor for the yet to be launched NANO.
PRESIDENCY BUSINESS SCHOOL, BANGALORE
1.2 BACKGROUND OF THE STUDY The automobile industry is one of the largest industries worldwide, one which has been achieving constant growth. It is the same in India as well. The automobile sector is vital and very important for the growth of the economy. It is a driving force for industries such as steel, aluminum, rubber, plastic, glass, electronics {primarily for the music, and lighting requirements}, and in todays context a great deal of R&D activities {Research and Development}, have been happening around the world in order to make cars more safer, comfortable and give the customer a pleasure to drive a particular car. It is the same in India as well. On the other hand certain industries like advertising and marketing, transport and insurance, have been driven downstream. Usually what is good for the automobile sector is also beneficial to the economy as a whole. The automobile industry by large can be classified into five main categories: 1. Passenger Cars 2. Multi Utility Vehicles ( MUVs) 3. Two and Three Wheelers 4. Light Commercial Vehicles (LCVs) and Medium and Heavy Commercial Vehicles (MHCVs). 5. Tractors. Despite a great start, the automobile industry in India has not quite been able to match up to that of its counterparts else where in the world especially
Europe and the United States. The all pervasive regulatory atmosphere prevailing till recently has been one the primary reasons for this Situation. The various acts that has given the industry a sense of protection from internal competition is one other reason. Moreover, for a long time the industry was also considered low priority as cars were seen as luxury products which were unaffordable by the masses. In the era of Post Liberalisation, the automobile industry, especially the passenger segment witnessed a boom. The success in this particular sector was derived primarily by economic liveliness, changes in government policies, increase in purchasing power (especially the middle class), improvement in life style and availability of car finance. The Passenger car industry was deregulated in the year 1993, and many companies both Indian and Foreign started competing for automobile space in terms of market share in India. Several companies entered the Indian markets such as DaimlerChrysler popularly known as Mercedes Benz, Ford, General Motors, Hyundai, Toyota, Honda, Skoda, Mitsubishi, etc., which competed extensively amongst each other and the Indian companies viz., Maruti Udyog Limited and Mahindra and Mahindra. However, the smooth going of the automobile industry was struck with a blow in the last quarter of 1996. The automobile industry which contributed substantially to industry growth in the Financial Year of 1996, failed to maintain a similar growth rate between the Financial Year 1997 to 1999. The overall slowdown in the economy and the resultant slowdown in industrial production, political uncertainty and inadequate infrastructure developments were some of the factors responsible for the slowdown experienced by the automobile industry. Even though the automobile industry experienced a turnaround with the launch of
several new models of cars across various segments and experienced positive growth, it turned out to be rather brief. The automobile sector in India has come a long way since its beginning in the 1940s, but India does not rank well in many respects. For instance, the contribution of the automobile sector to industrial output, number of cars per person, automobile sector employment as a percentage of industrial employment etc.., Again the industry profile in India is very different from global profiles. In 1993 globally the Passenger Car sector was one of the largest, accounting for over 50% (in terms of number of units sold), of the automobile sector. In India however it accounted for just 27% of the total vehicles sold in the financial year 2007. The linkages with the associated industries are weak in India as compared to other parts of the world. If we consider the quality of steel in India, major Original equipment Manufacturers (OEMs), have to import skin panels due to quality issues. However, major automobile makers worldwide consider India to be a good and potential market as they foresee a large demand in the future. Two factors that have surprised the Indian automobile Industry in the past are the low demand and lack of vision on the part of the OEMs and policy makers. In the recent past the regulatory environment has been liberalised, demand has picked up, and in such a situation the global OEMs who enjoy scale economies both in terms of manufacturing and Research and Development (R&D), have entered the Indian market. This possibly may result in a big shift in the way business is conducted by suppliers, assemblers and marketers. The automobile industry is the worlds largest manufacturing industry and a powerful engine of economic growth. The passenger Car industry is predominant in North America, Japan, and Europe. The United States has the
largest markets in the world, with major automobile makers like General Motors, Ford, DaimlerChrysler, Toyota, and others selling a record 23.3 million vehicles in 2005. European manufactures include Bayerishe Motoren Werke (BMW), DaimlerChrysler, Renault, Fiat Auto and the Volkswagen Group. In Western Europe, a combination of low interest rates and optimistic consumer confidence increased the sales. To achieve an increased global presence, and drive down purchasing and technology cost, many OEMs have started consolidating and restructuring. The last couple years have seen hectic activities I this area, the most noticeable amongst which were the merger of Chysler with Daimler Benz, Fords acquisition of the Swedish auto giant Volvo Car Corporation, Renaults acquisition of an equity stake in Nissan, General Motors increase of equity participation in Suzuki, DaimlerChryslers acquisition of equity stake in Mitsubishi, and Fords decision to sell of its iconic British brands viz.., Jaguar and Land Rover where TATA emerged the preferred bidder wherein the earlier bid was US $ 1 Billion and the same was revised to US $ 2.3 Billion. The purpose of Mergers and Acquisitions (M&A), is to create new opportunities for growth and improve margins through improver cost recovery. The hectic pace of all the merger activities notwithstanding, the global automobile industry is yet to stabilize. For instance in the United States after a decade of optimistic sales the industry continues to be plagued by excess capacity. Also, higher levels of integration of the regions have ensured that it is more difficult for a manufacturer to stay insulated from the effects of reduced growth in one part of the world. Globalisation and consolidation have impacted relationships between OEMs and suppliers. The aim of most suppliers is to become big enough to deal directly with the OEMs (either through organic growth or M&As), or become
THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. suppliers to systems integrators who are increasingly gaining access to the OEMs. The structure of the industry is changing with the relationship between the OEMs and the dealers and the pricing of the OEMs undergoing a change.
1.3 THEORITICAL BACKGROUND OF THE STUDY

In recent years the Indian automobile market has changed rapidly. Globilisation has served as a boom atleast for the consumers. The Indian consumers until now had a limited choice, and had been presented with a wide range of quality products. In the ongoing trend the section that advanced with surprising results was the automobile sector. Vehicles which people saw only on the television screens of English movies are now on the roads everywhere even in India. The automobile industry was already giving one of the highest turnovers. The customers now had wide variety of cars to choose from. All of the Indian auto giants joint the trend. Foreign companies came in with brilliant products for the Indian market. When we look more closely the ultimate progress was seen in the luxury car and small car segments. As far as the luxury car is concerned this segment was virtually non existent until recently. But the small car segment is huge in India atleast. Cars like the Maruti 800, Zen, Alto, Zen Estilo, Hyundai Santro, Gets, Santro Zing, Tata Indica and now the Tata Nano is a segment which in case can be ignored in India. This segment is the revenue generator for any automobile manufacturer who wishes not only to encash on the present opportunity but also wants to create a favourable future prospect for himself in the automobile segment especially the four wheeler market in India. The first Joint Venture in the car market in India was that of Maruti Udyog Limited Suzuki Motors Limited, Japan. They enjoyed a more or less monopoly position for about 10 12 years in the small car segment, due to the lack of potential competitors and a limited choice among the Indian consumers restricted to the Ambassador and the Fiat.
THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. But, time changed with the emergence of the LPG (Liberalization Privatization and Globalization), norms of the Government of India. Until this period India was a closed economy and did allow any company of foreign to set up their corporate office in India. But, after 199,1the country witnessed a wide array of companies including automobile companies venture into Indian shores. Some of the companies to actually enter the automobile market and that to the small car segment rather aggressively were Hyundai, with models like Santro, Santro Zing, Gets and now the i10. Daewoo also entered the market with Matiz, Daewoo was however taken over by General Motors and they introduced a rejuvenated version of the Matiz in the form of Spark. Fiat also entered the market with Palio. Today Fiat has launched the improved version of the Palio with a more responsive engine. ( The Multi Jet Engine). Even in the small car segment people are today more conscious of things like comfort, handling, safety and not to mention the mileage. A car provides to its customers a certain level of pride and class and they expect more from the car. The Tata Nano will face this problem where the customers will expect more from it even though it costs just Rs 1. Lakh. We can classify the present cars as per their marketing appeal and stand as seen by the company and the customers.
1. Maruti 800. First true Peoples car in India. Easy to own and maintain. More fuel efficient.
2. Maruti Zen Estilo. A more stylish version of the earlier Zen. European design incorporated. New version of the earlier Zen. 3. Maruti Alto. The latest best seller in the small car segment. Very fuel efficient. Easy handling at sharp curves. 4. Hyundai Santro. Slightly highly priced for the segment. Safety features are good. Very well positioned in the market. 5. Hyundai Gets. A higher end version of the Santro. Slightly more expensive. Has more engine options compared to the Santro. 6. Chevrolet Spark. The first small car offered by General Motors in India. A rejuvenated version of the Matiz. Small and easy to drive and control. 7. Tata Indica. One of the fastest selling cars for the Tatas. Most preferred vehicle for travelers and BPO operators.
THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. Trusted and reliable diesel engine which is also fuel efficient.
8. Fiat Palio. Very attractive looks and design. Futuristic engine technology. (FIRE Engine). Slightly expensive for the small car segment.
Some other cars in the segment, which cannot be called as small cars exactly but are not the B Segment, Cars as well. 1. Maruti Swift. 2. Skoda Fabia.
When viewed at the position, almost all companies are giving its customers more or less the same facilities at competitive prices. All products are almost similar to each other technically speaking, and it is very difficult to differentiate their individual attributes. In such a market environment with intense competition, companies need to adopt such marketing strategies which best suit its requirements and are in a way better than that of its competitors in order to carve a handsome market share. Each company gas taken up a particular aspect and has exploited the opportunity, in order to convert customers into buyers. What is not surprising is that this segment generates the maximum revenue of the automobile industry in India.
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. Every company wants to outperform the other, in order to do so the companies launch new and new cars or just variants of the previous car in terms of engine options, colours, styling etc.., which is done in order to attract customers and also fend off competition. Many companies bring in new models and undertake extensive research and development (R&D), programmes in order to understand and have a good idea as to what is the requirement of the market and what the consumers want.
The Small Car Market All cars that have been launched in the small car segment are more or less same when considered on a general basis. Some cars provide more facilities while others cover up by the Brand Image. This market is highly competitive in nature. Today no company can exercise monopoly in any sector or any industry. The Tata Nano is projected as, The Peoples Car, which can enable an individual to buy a car which due to financial reasons, he could not afford until very recently. The Nano is equipped with the following features, Aerodynamic Styling. Power Steering. Power Windows. Audio System. Air Conditioner. Five Speed Transmissions. Rear Engine ( not always). Fuel Efficient Engine which is EURO IV Compliant.
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One company which may be keeping its fingers crossed on the launch of the Tata Nano, and its relative acceptance by the consumers is Maruti Udyog Limited. According to industry sources one company which may be hit very badly in terms of sales and revenue is Maruti Udyog Limited. Today, the cheapest car offered by Maruti Udyog Limited is the Maruti 800, which is roughly Rs. 2.87 lakhs on the road, which is a cool Rs. 1 lakh, more than the Tata Nano. Moreover the Tata Nano claims to be more efficient than any other car in the country today and offer 21% more space to the customers than the Maruti 800. Safety aspects of the car are not ignored as the Nano comes equipped with airbags as a security feature other than ABS which is standard which was not available with the Maruti 800 until recently. At this time now we have come across some ground breaking cars in the small car segment. Swift from Maruti Udyog Limited and Fabia from Skoda Auto. These cars are never before seen cars in the small car segment especially in the Indian context. They have taken the segment a step further. These cars are Super Hatches, of the small car segment. They are premium cars which are priced a step higher than that actually seen in this segment. However, both manufacturers viz.., Maruti Udyog Limited and Skoda Auto have a good Brand Image and a strong presence in the market to back them up. The Swift was shift from Marutis traditional concept of cars that were produced up to this point. The Swift was produced by incorporating European Styling and a more responsive engine. It was a big gamble that Maruti Udyog limited took and succeeded in it. The Swift also offered a Diesel engine
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. which was a first from Maruti Udyog Limited. As Maruti Udyog is a Joint Venture between Maruti and Suzuki, Suzuki is known the world over for its world class Petrol Engines, and not Diesel Engines. However there was a simple yet effective solution for this. Suzuki outsourced Diesel Engine manufacturing process to FIAT, which is known to manufacture world class and reliable Diesel Engines. The result a fantastic engine which is not just fuel efficient but also powerful. The Swift is a sheer pleasure to drive which is extremely easy to drive in the city or even in the highway. The Swift also comes loaded with a wide array of features like Dual Airbags, Sunroof, 1200 cc Engine (DDIS Diesel Engine), leather seats, music system with CD changer, etc.., Next in line was the Skoda Fabia. This is a slightly higher end car or the premium car of this segment. The Fabia has incorporated European Styling in its design elements. The Fabia comes in two engine options the Petrol and Diesel. But its the diesel engine that is driving the sale of this car inspite of its cost the Fabia is the most expensive car in the segment but the customers seem to be getting what they want with the car even though its a bit expensive. The Fabia is a fully loaded car and as synonymous with the Skoda design it has the Built To Last, look. It looks tough even though its a small car. It has Dual Airbags, Side Impact Beams, Leather Seats, Steering Mounted Controls, Music System with CD changer, Defoggers, etc.., However, the Fabia scores above the Swift in a way that the 1.2 liter TDI diesel engine of the Fabia is more responsive in terms of fuel delivery and responsiveness. The biggest advantage that both these cars have is that they drive on a diesel engine, because the Indian consumers is becoming diesel obsessed.
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1.4 NEED FOR THE STUDY

1. To find out what are the many cars that are available to the consumers for purchase and which are yet to be launched. 2. Service improvements can be suggested in the NANO in terms of accessories, seating, etc.., 3. 4. 5. To understand the different aspects of consumers views and expectations from the NANO. To find out what will be the impact of the NANO on the segment leader, in this case Maruti Udyog Limited. To analyse the price differentiation of existing cars with the NANO.
Objectives of the Study

1. To analyse the potential for the TATA NANO in the Indian market. 2. To understand competitor strategies against the TATA NANO. 3. To conduct a research in order to analyse the consumer preference towards the NANO. 4. To measure the impact of the NANO on traffic conditions in Bangalore.
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2.
INDUSTRY PROFILE.
An automobile is a self propelled vehicle which is used for the transportation of passengers and goods upon the ground. The progress of the automobiles for transportation has always been associated with the progress of civilization and the development of the country.
HISTORY OF AUTOMOBILES.
Germany is the birth place automobiles. In 1769 a French Engineer, named Captain Nicholas Cugnot built the first self propelled vehicle. It was a three wheeler with a maximum speed of 3 mph, (3 Miles Per Hour). It was equipped with a steam engine. In 1802 Richard Trevitluck of England built the first practical steam automobile using the Crankshaft, for the first time. In 1863, Lenior of France automobile propelled by a gas engine. In 1876, Eienne Lenior of Belgium invented the first practical Internal Combustion Engine. Later in 1885 the real automobile was built by Daimler Benz, by employing a four stroke petrol engine in Germany. Then in 1895 Henry Ford, of America the founder of Ford Motor Corporation made his first famous car the from Corpora Tin, the main feature of present day automobiles. In 1900 1906, the production and sale of automobiles became the real business. In 1904 the Simpson Company of Madras started building
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. automobile bodies and body parts. In 1913, the total numbers of vehicles in India were only 4500 and in 1914 the total number was 6000. In 1926, Ford Motor
Corporation established their office in Bombay and then sold the world famous Ford T, modern car. In 1898, the motor car appeared in India in the form of a taxi cab in Bombay. In 1935, Sir. M. Vishweshvaraya set up an automobile industry in India, but the Government did not approve the plan. In 1943, the Premier Automobiles Limited Factory was set up at Bombay for the manufacturing of cars in India. In the year 1944, Hindustan Motors Limited Factory was set up at Calcutta for the manufacturing of cars in India. In India after independence Hindustan Motors Limited, Calcutta, and Premier Automobiles Ltd, Bombay, came into existence and started manufacturing the Ambassador and the Fiat. In 1948, Ashok Leyland Ltd, Madras started manufacturing commercial vehicles. A little later Mahindra and Mahindra Ltd, Bombay started manufacturing Jeeps. In 1954, Tata Engineering and Locomotives Company Ltd, came into existence at Jamshedpur and started manufacturing commercial vehicles. The automobile sector witnessed a boom in the post liberalization period. The buoyancy in the auto sector was primarily due to a vibrant economy with an average GDP growth rate of approximately 6%. Changes in Government policies increased the purchasing power of the individuals and also improved the lifestyle in the country along with the improvement of availability of car finance. Though the auto market boomed, individual players had a major set back in the future due to intense competition. Several Joint Ventures had been signed and several were expected in the future. The Joint Venture of Maruti Suzuki,
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. Mahindra Renault, are the examples. Nissan is considering a Joint Venture with Suzuki in the world market and with Mahindra for the Indian Market.
The smooth sailing by the auto sector saw a sudden jerk in the last quarter of 1996. The automobile industry which was contributed substantially to industrial growth in 1995 1996, failed to maintain the momentum in the first half of 1996 1997.The automobile production fluctuated throughout the first half of the year. Though it recovered in December 1996, posting a growth of 17%, the growth rate of 25% which the industry managed in 1995 1996 could not be sustained with production still out pacing sales in most of the segments of the markets. Auto stocks plummeted, with the large players suffering more in terms of sales and revenue than the smaller ones. Industry sources pointed out to the slow down in sales, building up of inventories and slashing of production targets as the cause of the crash. While one school of thought believes that this is the temporary phase and was caused by the special customs duty of 2% levied on the auto industry in 1996 1997, budget and post election fuel hike which is happening regularly as of now due to rise in the prices of crude oil. The other school of thought argues that this hike was offset by the cut in duty on plastics, electronic components, tyres, and steel.
The evolution of the Automobile Industry.

Initial Years
Cars regarded as luxuries. Manufacturing was licensed, capacity expansion restricted. Import of cars was restricted to the State Trading Corporation and
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. Foreign Diplomats. High customs duty.
Steep excise duties and sales tax. Market dominated by just two players viz, Premier Automobiles Ltd and Hindustan Motors Ltd.
THE ERA OF THE 1980s

Entry of Maruti Udyog Limited, - better products at lower costs, enjoyed Government support. Sellers Market. Long Waiting Period.
Limited Choice. Restriction on Capacities. License Requirements. High Import Duties.
Auto Finance became available but was limited to a few players. Maruti Udyog Limited captured a major market share, Premier Automobiles Ltd and Hindustan Motors Ltd., were able to maintain volumes but their market share fell drastically.
THE ERA OF THE 1990s
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. Cars perceived as necessities. Still a sellers market. Long waiting periods continued. Developments in the Mid Price and Luxury Segments.
Increase in competition with the entry of foreign manufacturers especially in the mid 1990s. Superior product quality and more choice. Auto Finance booms more players especially foreign banks and Non Banking Financial Institutions come in with better schemes. Delicensing in 1993. Removal of capacity restrictions. Decrease in customs and excise duties.
THE FUTURE
Buyers market. Drop in waiting period. Market Segmentation to change from being price based to size based. A big shake up in the industry. Increase in indigenization. Cars became technologically superior and more comfortable, especially the foreign brands. Regulatory frame work to be completely relaxed. Growth in auto finance. Decrease in interest rates, faster loan disbursement, higher service levels, smaller margin requirements and decrease in paper work.
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. future. Increase in importance of the sale and service network and infrastructure. Change in the kinds of products offered, at present hire purchase schemes are more prevalent than leasing, this is likely to be reversed in the
THE BIRTH OF THE AUTOMOBILE.

Horses were used with carriages since time immemorial, but it was only in the 18th century that the first horse less carriage actually hit the roads. However this idea was not something out of the blue. The thought of such an idea had originated long before the first contraption ( mechanism ), was rolled out. The history of automobiles actually began about 4000 years ago when the first wheel was used for transportation in India. Several Italians recorded designs for the Wind Driven Vehicles. The first amongst the lot was Guido Da Vigevano, in 1335. It was a windmill type drive to the gears and thus to the wheels. Vaturio designed similar vehicles which were unfortunately never built. Later Leonardo Da Vinci, designed a Clockwise Driven Tricycle, with tiller steering and a differential mechanism between the rear wheels. In the 15th century the Portuguese arrived in China and the interactions of the two cultures led to a variety of new technologies, including the creation of the wheel that turned under its own power. By the 1600s, small steam powered engine models were developed, but it was another century before a full sized engine powered vehicle was created.
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. A Catholic Priest named Father Ferdinan Verbiest is credited to have built a steam powered vehicle for the Chinese Emperor Chien Lung in about 1678. There is no information about the vehicle, but only the event. Since James Watt did not invent the Steam engine until 1705, we can guess that this was possibly a model vehicle powered by a mechanism like Heros steam engine a spinning wheel with jets on the periphery.
Although by the mid 15th century the idea of a self propelled vehicle had been put into practice with the development of an experimental vehicle by means of springs, clockworks and the wind, Nicholas Joseph Cugnot of France is considered to have built the first true automobile in 1769. Designed by Cugnot and constructed by M. Brezin, it is also the first vehicle to move under its own power for which there is a record. Cugnots three wheeled steam powered vehicle carried four people and was meant to move artillery pieces. It had a top speed of a little more than 3.2 km / hr ( 2 miles / hr.), but had to stop every 20 minutes in order to build up a fresh head of steam. Evans was the first American who obtained a patent for a Self Propelled Carriage. He, in fact attempted to create a two in one combination of a Steam Wagon and a flat bottomed Boat, which sadly did not receive any attention in those days. During the 1830s, the steam vehicle had made great advances. But, stiff competition from the railway companies and crude legislations in Britain forced the poor steam vehicle gradually out of the roads. The early steam powered vehicles were so heavy that they were only practical on a perfectly flat surface as strong as iron. A road thus made out of iron rails became the norm for the next One Hundred and Twenty Five Years. The vehicles got bigger and heavier and also more powerful and eventually they were capable of pulling a train of many cars filled with freight of passengers.
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. Carl Benz and Gottlieb Daimler, both Germans share the credit of transforming and changing the transport habits of the world, for their efforts laid the foundation of the great motor industry as we know it today. First, Carl Benz invented the petrol engine in 1885 and a year later Gottlieb Daimler made a car driven by a motor of his own design and the rest is all history. Daimlers engine proved to be a great success because of its less weight that could deliver 1000 rpm of torque and needed a very small and light vehicle to carry them.
By this time Finance too had joined the automobile scenario by two Frenchmen Pan Hard and Levassor began producing vehicles powered by the Daimler engine, and Daimler himself possessed the automobile spirit went on to add numerous new features to the engine in the time to follow. He built the first V TWIN Engine, with a glowing Platinum Tube to explode the cylinder gas the very first form of the Spark Plug. The engines were positioned under the seat in most of the Daimler and Benz cars. However, the French duo of Pan Hard and Levassor made a revolutionary contribution when they mounted the engine in the front of the car under the hood called the Bonnet. Charles Duryea built a motor carriage in America with a Petrol engine in 1892, followed by Elwood Haynes in 1894, thus paving the way for motorcars in the country of America. For many years after the introduction of the automobiles, three kinds of power sources were in common use, Steam Engine, Gasoline or Petrol Engine and Electric Motors. In 1900 more than 2300 Automobiles were registered in New York, Boston, Massachusetts, and Chicago to name a few. Of these 1170 were Steam Cars, 800 were Electric Cars and the rest i.e., 400 were Gasoline Powered Cars.
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. In just 10 years from the invention of the Petrol Engine, the Motorcar evolved itself into amazing shapes and futuristic designs. By 1898, there were around 50 automobile manufacturing Companies in the United States alone, a number that rose very sharply to 241 by 1908. In that year Henry Ford revolutionized the manufacture of automobiles with the Assembly Line, style of production and brought the Model T, car that was rather inexpensive, Versatile, and also easy to maintain. The introduction of the Model T transformed
the automobile industry from the perceived playfield of the rich to an item that even people of modest income could afford. By the late 1920s the car was commonplace in the modern industrial nations. Herbert Austin and William Morris, two different carmakers, introduced Mass Production methods of assembly in the United Kingdom, thus paving the way for a revolution in the automobile industry. Austin Seven, was the worlds first practical four seated small car, which brought the pleasures of motoring to thousands of people who could not buy a larger more expensive car. Even the Bull Nose, Morris with the front mounted engine became the more loved models and the most popular cars in the 1920s. Automobile Manufacturing in the 1930s and the 1940s refined and improved on the principles of Ford and other pioneers. Cars are generally large, and many were still expensive and luxurious, many of the most collectible cars dates back to this era. The increased affluence of the United States after World War II led to the development of large Petrol - consuming vehicles, while most companies in Europe made smaller more fuel efficient cars, many of which have been produced in Japan as well as in Europe and also the United states.
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. The history of Motor Vehicles has surely been a well traversed one. The automobile, as it progressed, was a product of many hands and many brains and revolutionary concepts, and of simple, almost unnoticed but in some cases noticeable up gradation. In the end, the one who received the most for these challenges and changes was the motorist, whose interest, money, and enthusiasm have forced the auto moguls to upgrade, to perfect, and add to previous achievements in order to stay in the competition.
The automobile as we know it was not invented in a single day by a single inventor. It is estimated that over 100,000, patents created the modern automobile. However, we can point out the many firsts that occurred along the way. Starting with the first theoretical plans for a motor vehicle that had been drawn up by both Leonardo Da Vinci and Issac Newton. In the year 1769, the very first propelled road vehicle was a military tractor invented by French engineer and mechanic, Nicholas Joseph cugnot, ( 1725 1804). Cugnot used a steam engine to power his vehicle, built under his instructions at the Paris Arsenal by mechanic Brezin. It was used by the French army to haul artillery at a speed of 21/2 mph on only three wheels. But, it had to stop every 20 minutes in order to build up a fresh head of steam. The Steam Engine and the boiler were separate from the rest of the vehicle and was placed in the front. The following year 1770, Cugnot built a Steam powered tricycle that carried four passengers.
EARLY ELECTRIC CARS
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. Steam engines were not the only engines used in early automobiles. Vehicles with electrical engines were also invented. Between 1832 and 1839 ( The exact year is uncertain), Robert Anderson of Scotland, invented the first electric carriage. The vehicle was very heavy, slow, expensive and needed to stop for recharging frequently. Both Steam and Electric road vehicles were almost abandoned in favor of the more preferred Gasoline / Petrol / Diesel powered vehicles. Electricity however found greater success in Tramways and streetcars where a constant supply of electricity was possible. However, electric cars and
cars that can run on alternate fuels rather than Gasoline / Petrol / Diesel, is more desired now a days as a result of increasing oil prices. This has given rise to Hybrid vehicle and also extensive Research and Development activities in the same field, which is known as FUEL CELL RESEARCH..
THE HISTORY OF ELECTRIC VEHICLES. Around the 1900s, electric land vehicles in America outsold all other type of cars. Then in the several years to follow, the sale of Electric cars took a nosedive as a new type of vehicle came to dominate the consumer market. History and Development of automobiles also marks the dynamics in technological growth that that few great men have achieved. From the days of Horseless Carriages and Horseback riding to the modern age of self guided automobiles that are designed meticulously using cutting edge technology, we have certainly traveled too far.
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. The Automobile industry in India is still not at the growth stages which one would expect it to be, but its growing rapidly. The opportunities in the automobile industry in India are attracting big names with a big Purse and they are investing vigorously in infrastructure, design and development and also marketing. The automobile industry in India is today poised for a big leap, that is rapid growth. A lot of companies are also undertaking extensive Market Research activities in order to analyze the feasibility of setting up of a plant in India.
THE BIRTH OF THE CAR

The birth of the car as we know it today happened over a period of many many years. It was only in 1885, that the first real car actually rolled down the street. The earlier attempts though successful, were Steam Powered road vehicles. The self propelled car was built by Frenchmen Nicholas Cugnot in 1769 which could attain speeds upto 6 km/hr. In 1777, he again designed another steam Powered car, which ran so fast that it almost rammed into the wall, recording the worlds first automobile related accident. In 1807, Francois Issac De Rivaz, designed the first Internal Combustion Engine. This was subsequently used by him to develop the worlds first vehicle to run on such an engine, one that used a mixture of Hydrogen and Oxygen to generate energy to propel the car. This spawned the birth of a number of designs based on the Internal Combustion Engine, in the early 19th century with very little or absolutely no commercial success. In 1860, thereafter, Jean Joseph Etienne, built the first successful two stroke gas driven engine. In 1862 he again built an experimental
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. vehicle driven by his Gas Engine, which ran at a speed of 3 km/hr. These cars became popular and by 1865 could be frequently used on the roads. The next major leap forward occurred in 1885 when the Four Stroke Engine was devised. Gottileb Daimler and Nicholas Otto, worked together on the mission till they fell apart. Daimler created his own engine which he used both for the ca and the first four wheeled horseless carriage. In the meanwhile
unknown to them, Karl Benz was in the process of creating his own advanced tricycle which turned out to be the first true car. This car first saw the light of the day 1886. The season of experiments continued across the seas in the United States where Henry Ford began to work on a Horseless Carriage in 1890. He went several steps forward and in 1896, completed his first car, The Quadricycle in 1896. This was an automobile powered by an Two Cylinder Gasoline Engine. The Ford Motor Company was launched in the year 1903 and in 1908 Henry Ford unveiled the Ford Model T, which shook the entire automobile industry and took Henry Ford to the Pinnacle of Fame. Continuing on his innovations, he produced this model on a moving assembly line, thus introducing the Modern Mass Production Techniques, of the automobile industry. With the invention of the wheel in 4000 BC, mans journey on the road of mechanized transport had begun. Since then he continually sought to devise an automated, labour saving machine to replace the horse. Innumerable attempts reached conclusions in the early 1760s, with the building of the first Steam driven tractor by Frenchmen Nicholas Jacob Cugnot. It was however left to Gottileb Daimler and Karl Benz to produce the first vehicle powered by the Internal Combustion Engine in 1885. It was then that the Petrol Engine was introduced, which the car a practical and safe proposition. The cars in this period
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. were more like the cars on our roads today. With the new cars came the era of speed. The first ever land speed record was set over 100 years ago, in 1898. Count Gaston De Chasse Loup Lau bat of France drove an electric car in Acheres near Paris at a speed of 39.24 miles per hour. This flagged the era of wheel racing, which lasted till 1964, after which jet and rocket propelled engines came into the scene. Then onwards, it has been one big journey, on the road in
an automobile. With the invention of the wheel in 4000 BC, mans journey on the road of mechanized transport had begun. Since then he continuously sought to devise an automated, labour saving machine to replace the horse. Innumerable attempts reached conclusion in the early 1760s, with the building of the first steam driven tractor by Frenchmen Nicholas Jacob Cugnot. Then onwards, as already mentioned it has been one long journey on the road in an automobile.
FIRST INDIAN TO BY A CAR

The first car was imported into Bombay ( Now Mumbai ), in 1897, by Mr. Froster of Greaves Cotton and Company. Jamshedji Tata was the first Indian in Bombay or in India to say so, to own a car when he bought one in 1901.
THE GLOBAL CAR MARKET

The automobile industry as we know it is predominant in North America, Japan and Europe. The United States has one of the largest markets in the world with over 21 Million Light Motor Vehicles sold in 2002, besides those of exports. PRESIDENCY BUSINESS SCHOOL, BANGALORE 28
THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. The major car manufacturers in the United States are General Motors with a market share of 36% and Ford Motors with a market share of 23%. The second largest car market in the world is Western Europe. In terms of the number of car produced and sold in the world India has a share of just around 2%. of the worlds production. This means, that India has a long way to go as far as Automobile Development is concerned.
The automobile sector as discussed earlier is a vital sector for any developed economy. It drives upstream industries like steel, aluminum, rubber, plastics, glass and also electronics. However, it driver downstream industries like advertising and marketing, transport and insurance. What is good for the automobile sector is beneficial for the economy as well. However, in India the correlation between the automobile industrys contribution to the countrys GDP ( Gross Domestic Product ), is only 4 %. It the United States it accounts for over 5% of the GDP. Every sixth worker in the United States in engaged in the manufacture of automobiles. India is considered as a major potential market by the major car manufacturers of the world as they foresee a large demand in the Indian car market. In terms of number of persons per car the United States has an average of 1.4, persons per car, Canada has 1.8 persons per car, Australia and New Zealand has 2.2 persons per car the whole of Europe has 2.5 persons per car, Thailand also has 2.5 persons per car, whereas India has 2.75 persons per car. Also it takes an average of 21 weeks of income in the United States to own a car, 15 weeks in Japan, 27 weeks in Europe, whereas the ratio in India is very high. Two things that have Indias automobile industry in the past are low demand and lack of vision on the part of OEMs (Original Equipment
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. Manufacturers), and the Policy Makers. In such a situation, global OEMs who enjoy scale economies in terms of manufacturing and R&D (Research and Development), is poised to take a big leap forward. This is likely to result in a big shift in the way business is conducted by suppliers, assemblers and marketers.
MARKET SEGMENTS
In the developed markets, size and wheel base are the basis of segmentation. In India the price has mostly been the basis of segmentation. Also, irregularities or problems can be encountered if we go by size and wheel base. The 1660 cc Ambassador and the 1360 cc Premier ( FIAT), both of which are outdated models today, carried a price tag of Rs. 2.86 Lakhs and Rs. 2.24 Lakhs respectively, which would other wise have to be categorized in the Higher End Segment. As the market grows, segmentation will be based on size as in the case of European and other developed countries. The passenger car segment in India can be divided into four distinct segments:
THE SMALL CAR SEGMENT.

The Small Car Segment in India is represented by cars such as the Maruti 800, Maruti Zen, Alto, Fiat Palio, Chevrolet Spark, Hyundai Santro and the Getz, Tata Indica and off course TATA NANO, to name a few. In this segment however Maruti has been the most dominant player and enjoys market leadership with a PRESIDENCY BUSINESS SCHOOL, BANGALORE 30
THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. market share of almost 33%. The key to Marutis success has been cost advantage which translated into competitive pricing. The margins are low in this segment as compared to other segments and unless the scale of operation is large, this segment is not feasible for new entrants. New units may have to invest large sums of money and manufacture mare than one lakh cars per annum, to achieve economy of operations. This segment is however plagued by rising input cost as a result of the increase in inflation, which ultimately results in increased cost of the final products.
The demand in this segment is also affected by factors such as household income, limited availability of products ( the choice available while selecting a car given the limited budget ) as increasing use of cars as a corporate executive perk. This segment caters mainly to the middle middle class and the upper middle class as well.
THE MEDIUM CAR SEGMENT.

The Medium Car segment consists of brands like the Fiat Petra and Sienna, Ford Ikon and the Fiesta, Honda City, Toyota Corolla, Tata Indigo, Hyundai Accent and Verna, Chevrolet Optra and Aveo, Maruti SX4, Baleno and Dzire, Mahindra Renault Logan, Mitsubishi Lancer and Cedia, to name a few. This segment mainly targets those people who already a car and desire to buy another one as a status symbol or for the want of a more luxurious car. The sales of this segment have not been very high and the successes of most of these vehicles have been moderate in India. India has predominantly been more tuned to the Small Car, rather the other more luxurious cars.
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THE LUXURY CAR SEGMENT.

The luxury car segment consists of cars with better features like bigger engine capacity, more spacious interiors, and modern technological features. This segment targets the up market customers who are not price sensitive. For this customer group purchasing the car is what its all about, no matter what the cost. This segment consists of some of the biggest names in the Industry such as Volkswagen, Audi, Skoda Auto, Mercedes Benz, B M W, Bentley, Rolls Royce, and Lexus, to name a few. These companies have a Niche, or create one to serve a distinct customer group who have a distinct need. The luxury cars aim at the niche markets of the very rich and their emerging consumption patterns. They are also banking on exports markets with the help of the promotion and distribution networks of the collaborators. Being a fairly young segment, this segment is not sensitive to price and there are no price barriers, and there are no benchmarks of desired product features. Each company offers something new in order to outperform his competitor. Model selection is therefore riskier than in the small car segment. Moreover, a potential producers choice sets are large as internationally big cars from a large portion of the total market. There are three things that OEMs (Original Equipment
Manufacturers), will have to factor in before firming up any strategy or any model in the premium segment. Firstly, global brands do suffer from brand dilution once they have manufactured on Indian Soil. Secondly, OEMs (Original Equipment Manufacturers), have realized that you cannot afford to sell older models in this Technology Sensitive segment. Thirdly, this segment is extremely vulnerable to imports of newer models.
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The Problem Faced by the Automobile Industry in India Today.

One of the biggest problems faced by the automobile industry in India as of now is the Varying Excise Duties, which is a major cause of concern. After a period of exponential growth over the last six years, the automobile industry is now showing signs of a slowdown infact its beginning to saturate. The increase in interest rates of car loans has affected the buying capacity, and stabilizing the rates is expected to give a fillip to the industry and boost the economy, which is the opinion of industry experts. One of the main concerns of the automobile industry is that of the Varying Excise Duties. It was earlier proposed to have a uniform excise duty of 16% on all cars irrespective of size or engine capacity, therefore the Government needs to look at this closely as this will be mutually beneficial to the automobile manufacturers and the consumers. Additionally, a reduction in the Completely Build Unit Duty, (from the current 112%), on premium cars i.e., Imported
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. Vehicles over the years will benefit the industry. This was the view shared by Mr. Arvind Matthew, President and Managing Director, Ford India. This view was reiterated by Head, Corporate Communications, Hyundai Motors India, Rajiv Mitra. He said that the 24% excise duty on luxury cars was unfair. The Government should give incentives to the exporters of cars which Hyundai is. But, in reality what this excess of excise duties has done is that it has made the small cars more affordable to the consumers. This is more so in the recent budget wherein the cars with a capacity of 1.5 (1500cc),or less had a slightly lower excise duty to pay than those with an engine which was above 1.5 ( or 1500 cc). Since Hyundai is one of the largest exporter of cars and is also bringing in valuable foreign to the country and generating employment, a revival of the earlier Target Plus Schemes, which offered incentives for reaching targets in exports, would definitely help. The scheme was however discontinued in 2006. Distinction should also be drawn between the assembling and manufacturing units since the latter involved large investments, setting up a large vendor base and led to high levels of localization. Each vendor of Hyundai is believed to employ about 1000 people. Rajiv Mitra added that Hyundai had already invested about Rs.15000 Crores, in India. This fact necessitates that companies like Hyundai be given special concessions and discounts or benefits. Duty on capital goods and project imports should be at a par with other countries to attract foreign direct investments. Current Export Incentive
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. Schemes like the Export Promotion Capital Goods ( EPCG), export obligations should be revised in the wake of Rupee Appreciation. Corporate tax should be reduced from the current 3.99 % and a list of services not covered under the service tax should be declared to avoid litigation, which was said by Mr. Arvind Matthew, President and Managing Director, Ford India.
The Drawbacks
Increase in the interest rates on car loans which will affect the buying capacity. Excise Duty on luxury cars are objected. Duty on capital goods and projects imports should be at par with other countries. Corporate tax should be reduced from 3.99%.
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2.1
COMPANY PROFILE
SMALL CAR MANUFACTURERS

Generally speaking, every thinkable automobile in any part of the world is now available for us in India. Beginning with Maruti and TATA Motors which were essentially an Indian brand, many other companies such as Daewoo, Chevrolet, Fiat, Skoda, Volkswagen, Hyundai, Opel, PAL - PEUGEOT etc., started entering India. Even if certain companies have not entered India or certain models and variants of the brand are not available in India directly, they can be made available through Imports. Imports can cost the Importer a significant amount of money, but its a price one has to pay to enjoy the automobile.
HYUNDAI.
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. Hyundai Motors was established in the year 1967, by the Hyundai Group. However, for a long period it was just producing cars based on designs supplied to it by FORD. The first self developed model was in the year 1974 known as PONY, but under the guidance of Mitsubishi. Engines came from the Japanese design while the styling came from the Italian design. The car earned the name HYUNDAI, the largest Korean Car manufacturer which is unchallenged even today. The second generation PONY, came the year 1982, which marked another milestone, the first large scale export. Just like the Japanese the Korean industries were very much export oriented and still remains the same. The PONY was a small car and benefited by the wage advantage of the Korean labourers. It stormed the Canadian small car market in 1983. The world started to realize another Eastern car making nation. The first self designed engine appeared in the year 1991, which signaled the real autonomy of Research & Development. Sales continued to grow in the whole of the 1990s, as the model range and variants expanded and also quality improved. The company came to India in 1999, and launched their Tall Boy Santro, in India, which went on to become Indias largest selling car behind the Maruti 800.
DAEWOO
The story of Daewoo Motors began with that of General Motors. In 1972, General Motors established a Joint Venture with Korean car maker Shinji Motors Company. The company was named General Motors Korea and was General Motors weapon to dominate the South Korean market. Although 50% stakes were sold to local industrial giant Daewoo Group in 1978, General Motors still controlled the development of cars.
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In reality Daewoo did not involve itself much in the development of new cars because General motors could always find some outdated cars from Opels operation to transfer it to Daewoo. The Pontiac Lemans, from the 1980s, was one of such examples. In the light of supplying the US market to fight against the Japanese small car, Daewoo started to produce this rebadged version of Opel Kaddet on behalf of General Motors. However, the project gave the Korean car maker the first taste of large exports which has become the sales policy of today. It also gave Daewoo a modernized plant with 170,000 units of annual capacity.
General Motors quit in 1992 as it sold the remaining stake to Daewoo Group. Daewoo started to develop cars on its own. This also involved setting up of an Research & Development centre in Europe and subcontracting many development projects to overseas consultants. With some help of the western experts the small car Lanos, was born in 1995. Next year, Daewoo invested into Polands FSO, forming a Joint Venture and eventually producing the Matiz, the mini car, which in Spanish means Beautiful Car. In 1998, Sports Utility Vehicle (SUV), maker Sangyoug got bankrupt and was taken over by Daewoo. The Daewoo group was used to have a variety of business in different fields. In 1999, the group got into financial crisis due to the over expansion during the previous years, thus resulted in selling nearly all business but the car manufacturing division. However, the Car Manufacturing division also faced the same crisis a year later and was purchased by Chevrolet the Sub Brand of General Motors.
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FIAT
The FIAT Company was formed over a 100 years ago in 1899, starting out with a small workforce of just about 40 employees. With 10 years the small company in Turin was producing over 1200 motor cars a year with a workforce of 2550. The man responsible for this remarkable turnaround was Giovanni Agnelli. Giovanni Agnelli gained inspiration from his frequent visits to America and began to build Europes largest factory in Turin. The company soon started an export drive; in 1908 cars were being built under license in New York. By the 1990s, FIAT cars would be produced in over 22 countries. Over the years they have taken under their wing great motoring names like Alpha Romeo, Lanica, Maseratti and off course the name that personifies elegance and class Ferrari. In 1957 the FIAT 500 was introduced, many car manufacturers criticizes this tiny little car, FIAT however, knew that their aim was solely to produce a car for the masses. In 1966, FIAT launched the 124 Spider, one of Italys most successful sports cars. Its performance and handling was way ahead than that of the competitors, with a Pininfarina, body design and a superb in line four engine. With a production run of almost 20 years and 200,000 cars built tells the story. Over the years various engine sizes were available, ranging from the 1438 cc to the top the line 1995 cc. Since the automobile has been produced many many manufacturers have fallen by the wayside. FIAT has been manufacturing motor cars for well over a 100 years now, and still remains one of the most successful car producing companies in the world.
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MARUTI UDYOG LIMITED.

Maruti Udyog Limited ( MUL ), is the largest car manufacturer in India, with a market share of over 35 %. It is a Joint Venture corporation between the Government of India and Suzuki Motors Corporation, Japan. Although the company is a clear leader, it faces threats from new entrants in the industry. The latest threat being that of the Small Wonder, TATA NANO. The company was incorporated in 1981 to take over the assets of the erstwhile Maruti Limited. However, Maruti Limited was set up in 1971, had been wound up due to a High Court Order in 1978. The assets of Maruti Limited were then acquired by the Government under the Maruti Limited (Acquisition and Transfer of Undertakings act, 1980). In the year 1982, the Government signed a Joint Venture agreement with Suzuki Motor Corporation of Japan. Suzukis stake had risen from 26% in 1982, to 40% in 1987. Suzukis stake went up once again to 50.25% in 1992. Between August 1997 and June 1998, there were severe tensions between the two partners over the issue of appointment, of the Managing Director ( MD), of the company. The issue was however, resolved in June 1998. The first product, Maruti 800 was launched in 1984. In 1985 the All Terrain Vehicle, - GYPSY, was launched and during this period launched in 1990 and simultaneously the ZEN was launched in 1993. The company manufactures passenger cars at its factory in Gurgaon, Haryana. It initially had an installed capacity of 350,000 vehicles per Maruti sold its 50000th vehicle. The Maruti 1000 or the Esteem as came to be known was
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. annum which rose to 450,000 in the year 1999. The companys models include Maruti 800, Zen, Esteem, Gypsy, Omini, and Baleno. As of today there are several models which have been phased out as they were no longer profitable to continue with them in the product line. Some of these cars that were phased out were replaced by newer models. The Baleno was phased out as its design was not very appealing and it was improperly positioned. Therefore it was replaced with the SX4, which is superior both in styling and design. This is evident in the sales. The Gypsy was also phased out as the Gypsy was not generating enough sales revenues for the company. Moreover the economy had become more conscious about the fuel consumption where the Gypsy did not fit. Again it was an off roader and was not really made for the city. The Zen was re introduced in the market in the form of the Zen Estilo. But this turned out to be a disaster, due to improper positioned and unplanned ad campaigns. It was however re done and launched again. Ever since the Gypsy was phased out Maruti Udyog Limited always felt the shortage of an SUV. This shortage was filled up by the Grand Vitara, which has done a moderate enough job for the company. After this came the Maruti Swift, which created waves in the automobile industry as Maruti was not known to produce a car like the Swift which carried European styling and had an extremely different Ad campaign which was extremely successful. Next to the line of models came the Swift DDIS (Direct Diesel Injuction System), the Swift equipped with a diesel engine, a Suzuki but FIAT, the pioneers in diesel engine technology. segment where Maruti had not ventured into earlier. The engines were manufactured not by
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. In the car segment Maruti Udyog Limited, had a market share of about 38% as on 2007, with sales touching 350,000 cars. But in the period to follow car sales dropped due to high input costs and their relative effect on the price of the cars, and especially now in the wake of the TATA NANO being launched in October of this year the sales the only be expected to drop further. The company has several Joint Ventures with some of these vendors to source its raw material requirements. On the sales and marketing side, Maruti has a network of 140 plus dealers and sales outlets in over a 100 locations across the country. It also has a 1000 odd strong service work shop network covering 415 locations in the country.
In August of 1997, a major dispute broke out between Suzuki Motor Corporation and the Government of India. The dispute was regarding the appointment of Bhaskarudu as the Managing Director which Suzukis Directors in the Board had rejected. Moreover Suzuki claimed that the appointment of Bhaskarudu was illegal and he was not competent enough for the job. The matter was however settled in the due course. As a process of disinvestment in PSUs ( Public Sector Undertakings), the Government of India seriously considered disinvesting its share in Maruti Udyog Limited, which eventually materialized to the tune of about Rs. 35000 crores. As of today Maruti Udyog Limited is not completely a private entity as the Government of India continues to hold some part of the share in the company which it once floated.
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OPEL
Opel is a German automobile company, which was created by Adam Opel. Adam Opel was born in Russelsheim, Germany in 1838. As a young adult, he toured Europe and observed the emerging industrial revolution in the city of Paris, France. He saw the first sewing in Paris and learned how to build one. After a few years in Europe Adam returned home back to Germany and began making sewing machines in an old converted cow shed. At the age of just 25, Adam founded the Opel Company. His business grew rapidly and soon became the largest sewing machine manufacturer in Germany. The year 1884 was an important year for Adam Opel , when he encountered a bicycle in his favourite city, Paris. Much like the viewing of the sewing machine, Opel wanted to build bicycles and began buying bicycle parts from England. Opel hired mechanics to inspect the bicycles and overhaul them, and then began selling fully assembled bicycles the next year. The Adam Opel bicycle business was off and peddling. Adam was the father to five sons: Karl, Wilhelm, Heinrich, Fredrich, and Ludwig. They assisted Adam in the business rode bicycles races which had become popular in Germany. Their excellent performances served to make Opel bicycles a name that was known throughout Europe. Opel was the one to introduce new technologies and began selling his bicycles with air filled tyres which had been invented by an Englishmen named Dunlop in 1890. The company was making 2000 bicycles a year, and by the time Adam died at the age of 57 in 1895, Opel had already established its position as a major manufacturer of sewing machines and bicycles. By 1897, there were a number of companies producing bicycles and Opels sales dropped which pushed Karl and Wilhelm to start a new
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. business. They decided to take on the new automobile industry. The Opel brothers bought out the Lutz Mann factory and the first Opel patented vehicle, the System Lutz Mann was introduced in 1898 with 1545 cc single cylinder engine with a very simple carriage design. The period between the 1900s to the beginning of the First World War which was some 15 years, was marked by rapid growth. Opel began to produce its own line of automobiles in conjunction with the French company Darracq. The companys four cylinder engines were highly praised and the race cars equipped with this engine came out on top in the race. The Doctor Wagen, was a car aimed at the general public and also established a solid reputation for Opel. Opel started the development of engines for motorboats, motorcycles and cultivators.
In 1911 a major fire broke out in the Opel factory prompting the company to close down. The sewing machine division too was not doing well. The company however, reorganized the factory and started manufacturing fire engines. Opels drive to succeed and adopt became their trademark. By 1914, just prior to World War I, Opel had become the largest automobile manufacturer in Germany with an annual production of more than 3000 units. Opel, like many other car companies was forced to shutdown when the World War broke out in 1914. The company was then ordered by the military to build military trucks. Opel continued to develop engines for new passenger cars during the war, all the while satisfying the demand by the military for the trucks. By the end of the war they, they had reached completion of a prototype for the axis cylinder engine. Wilhelm Opel studied the system employed by Ford in the United States, and the first Opel mass production model, the Laubfrosh, was launched at a low price of 4000 Marks. By 1928, the company had become a giant in the auto industry producing more than 40000 cars in a year.
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In the year 1929, Opel decided to become a member of General Motors Group of the United States. A number of reasons were behind this decision, first of all there were a huge number of inexpensive American cars flooding the German market. Secondly, if Opel decided to join General Motors voluntarily, Opel could utilize the advanced technologies and network of the General Motors Group, without abandoning their original philosophies and policies. Thus, Adam Opel began the procedure to make Opel t a part of General Motors on March 17, 1929. In 1935, Opel introduced the Olympia, which had the first Firstall Steel Mono Cockpit, in the world in any car. This model became extremely popular.
In the 1980s, Opel achieved international recognition. The Corsa, Omega and Vectra captured many international awards for design and styling. During the 1990s, the Astra the successor of the Kadett, and the Tigra were introduced in the market. However, seeing an Opel in the United States is becoming more and more rare these days, but Opel is still one of the top selling cars in the European market, and the companys share has also been rising in the Japanese market.
SKODA AUTO COMPANY

In 1895, 27 year old Vaclav Klement, and 30 year old Vaclav Laurin had opened a small workshop under the trade name Laurin & Klement to manufacture and repair bicycles.
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. By the modern standards these enterprises could be called as family run, because only six workers performed all of the production. Besides the founders of the company themselves, their wives and two of their friends were assembling and repairing the bicycles. The production was organized at a high level and the bicycles demand became stable. Having mastered in bicycle production, the company began to produce motorcycles. These two wheel machines were delivered even in England, whereas in Germany it was an organized manufacturing under license. In 1904, Laurin and Klement Company launched a three wheel car in the market that could accelerate upto 40 km/hr. In 1905, the production of small cars, Voiturette in Mlada Boleslav began. Two cylinder, four stroke engine with a 1 Litre Displacement ( 1000 cc), and 7 BHP ( Brake Horse Power ), was developed. Even this car could accelerate to 40 km / hr.
Growing demand for the products required an increased investment and in 1907 Laurin and Klement Company had transformed into a Joint Stock company under the management of Klement being the Director. In the same year Laurin and Klement Company became the largest car manufacturer in Austin Hungary. Since the First World War the company was oriented towards the production of Light Trucks and Self Propelled ploughs. Its production was exported even to the then remote places such as Mexico, and Japan. In 1925, Laurin and Klement Company merged with Skoda Auto from Pilsen. At the same time the compact car the Skoda 422, was introduced to the market. In the Skoda popular car launched in 1934, the engine and clutch were located in front, whereas the gearbox was differentiated from the rear. Skoda 1101 Tudor, was the first car produced since the Second World War. In 1954, Skoda 440 was launched and its success was supported by the launch of
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. the Skoda Octavia. The present generation of Skoda Octavia that we see today is a descendant of the same model that rolled in the 1960s and the 1970s. In 1964 new plants in Mlada Boleslav was brought into operations. It was expected to produce 120000 units annually and the first car that left its assembly line was the Four Door Skoda 1000MB. It had a four cylinder engine located in the rear, it was a rear wheel drive. This pattern was seen all Skoda cars until the end of 1980. In 1988 the production of the front wheel drive Skoda Favourite car, was initiated and these cars became strong competing brands for cars such as the Volga - Motor car, at the markets in East Europe.
In 1990 Volkswagen Company purchased 30% shares from the Czechoslovakian Government. In April 1991 Volkswagen Company signed an agreement on the creation of a Joint Venture followed with radical reconstruction. The main purpose of the agreement was to bring the cars under the Skoda stable to the World Market. In 1994, already 60% of the shares were repurchased by Volkswagen. In 1995, 70% of the shares were repurchased by Volkswagen and by the end of May 2000; the entire Enterprise of Skoda was fully purchased by the Volkswagen Company. ( The last 30% of the shares cost a total of 650 Million German Marks). The result of this policy is known to almost everyone interested in the world of automobiles. More than 600,000 Skoda cars have been sold World Wide since that time. In September 1996, the production of Skoda Octavia cars begun. It was actually the first car built on the platform developed by the Volkswagen Group.
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. In March 1998, the upgraded version of the Skoda Felicia and Skoda Felicia Combi were launched. The Skoda Octavia Combi estate car was also launched. Today a total of 18000 people are working for Skoda Auto, and the third part of all working places in the Czech Republic in either event are existed due to the activity of the enterprise. Most of the Skoda cars produced are exported providing about 8% of all export operations of the Czech Republic.
TATA GROUP.
COMPANY PROFILE
There is a difference between making money for oneself and creating wealth for others. This is the story of a business house that has created wealth for a nation.
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. It is a story of struggle, anxiety, adventure and achievement. This is the story of our pioneers Jamshedji Tata: The founder of the Tata Group began with a textile mill in central India in the 1870s. His powerful vision inspired the steel and power industries in the country, set the foundation for technical education, and helped India leapfrog from backwardness to the ranks of industrialized nations. Jamshedji Tata was more than merely an entrepreneur who helped India take her place in the league of industrialized nations. He was a patriot and a humanist whose ideals and vision shaped an exceptional business conglomerate
We live in an age where greatness in historical personalities is as easily exaggerated as it is inequitably scrutinized. To rise above this paradox of hyperbolic inanity, on the one hand, and cynical revisionism, on the other, is difficult even for those whom posterity has vindicated. One person who does soar beyond such judgmental trivialities is Jamshedji Nusserwanji Tata, industrialist, nationalist, humanist and the founder of the House of Tata. The industrialist in Jamshedji was a pioneer and a visionary, possessed of a spirit of entrepreneurial adventure and acumen never seen before or since in a native of colonial India. The nationalist in him believed unwaveringly that the fruits of his business success would enrich a country he cared deeply about. These attributes, by themselves, would have been enough to mark him as an extraordinary figure. But what made Jamshedji truly unique, the quality that places him in the pantheon of modern India's greatest sons, was his humaneness.
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. It is this characteristic from which stemmed Jamshedji's generosity of heart and his compassion for a citizenry labouring under the twin realities of oppressive foreign occupation and overwhelming poverty. The distinctive structure the Tata Group came to adopt after Jamshedji's passing, with a huge part of its assets being held by trusts devoted to ploughing money into social-development initiatives, can be traced directly to the empathy embedded in the founder's philosophy of business. Nothing of Jamshedji's childhood suggested he would create his own destiny. Born on March 3, 1839, in the sleepy town of Navsari in Gujarat, he was the first child and only son of Nusserwanji Tata, the scion of a family of Parsee priests. Many generations of the Tatas had joined the priesthood, but the enterprising Nusserwanji broke the mould, becoming the first member of the family to try his hand at business raised in Navsari, Jamshedji joined his father in Bombay when
he was 14. Nusserwanji got him enrolled at Elphinstone College, from where he passed out in 1858 as a 'green scholar', the equivalent of today's graduate. The liberal education he received would fuel in Jamshedji a lifelong admiration for academics and a love of reading. Those passions would, though; soon take a backseat to what Jamshedji quickly understood was the true calling of the life: BUSINESS.
It was a far-from-opportune time for a young native to take his first, tentative steps into the volatile world that was business in the subcontinent. Jamshedji's entrepreneurial career began, in the words of JRD Tata, "when the passive despair engendered by colonial rule was at its peak". The Indian Mutiny of 1857 was but two years past when Jamshedji joined the small firm that his father, a merchant and banker, ran. He had just turned 20.
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. Nusserwanji and Kaliandas, the partnership company his father presided over, was Jamshedji's first port of call. With Nusserwanji for teacher, Jamshedji, an eager learner, gradually grew from apprentice to a skilful practitioner of the business arts. He gained knowledge about commodities and markets, trading and banking. In 1868, aged 29 and wiser for the experience garnered by nine years of working with his father, Jamshedji started a trading company with a capital of Rs 21,000. The budding entrepreneur was by now accustomed to the fickleness of the business life, being witness to the failure of his father's banking enterprise. This episode blighted his first visit to England, where he was besieged by creditors, but Jamshedji also learned a lot on this trip, most significantly about the textile business.
Jamshedji's maiden expedition to England, and others that he made in subsequent years, convinced him that there was tremendous scope for Indian companies to make a dent in the prevailing British dominance of the textile industry. Jamshedji made his move into textiles in 1869. He acquired a dilapidated and bankrupt oil mill in Chinchpokli in the industrial heart of Bombay, renamed the property Alexandra Mill and converted it into a cotton mill. Two years later, Jamshedji sold the mill for a significant profit to a local cotton merchant. He followed this up with an extended visit to England, and an exhaustive study of the Lancashire cotton trade. The quality of men, machinery and produce that Jamshedji saw during this sojourn was impressive, but he was certain he could replicate the story in his own country. Jamshedji believed he could take on and beat the colonial masters at a game they had rigged to their advantage.
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. The prevailing belief of the time determined that Bombay was the place to set up the new project, but Jamshedji's genius told him otherwise. He figured he could maximise his chances of success if he factored three crucial points into his plans: close proximity to cotton-growing areas, easy access to a railway junction, and plentiful supplies of water and fuel. Nagpur, near the heart of Maharashtra's cotton country, met all these conditions. In 1874, Jamshedji had floated a fresh enterprise, the Central India Spinning, Weaving and Manufacturing Company, with a seed capital of Rs 1.5 lakh. Three years later, his venture was ready to realise its destiny. On January 1, 1877, the day Queen Victoria was proclaimed Empress of India, the Empress Mills came into existence in Nagpur. At the age of 37, Jamshedji had embarked on the first of his fantastic odysseys.
The period following the establishment of Empress Mills was the most significant of Jamshedji's busy life. In hindsight, it was also the most poignant. From about 1880 to his death in 1904, Jamshedji was consumed by what has to be the three great ideas of his life: setting up an iron and steel company, generating hydroelectric power, and creating a world-class educational institution that would tutor Indians in the sciences. None of these would materialise while Jamshedji lived, but the seeds he laid, the work he did, and the force of will he displayed in fulfilling this triumvirate of his dreams ensured they would find glorious expression. The iron and steel idea got sparked when Jamshedji, went on a trip to Manchester to check out new machinery for his textile mill, attended a lecture by Thomas Carlyle. By the early 1880s he had set his heart on building a steel plant that would compare with the best of its kind in the world. This was a gigantic task.
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. The industrial revolution that had transformed Britain and other countries had, by and large, bypassed India. Officious government policies, the complexities of prospecting in barely accessible areas and sheer bad luck made matters worse. Jamshedji found his path blocked at every other turn by what his biographer, Frank Harris, called "those curious impediments which dog the steps of pioneers who attempt to modernise the East". The torturous twists and turns the steel project took would have defeated a lesser man, but Jamshedji remained steadfast in his determination to see the venture come to fruition. Along the way he had to suffer the scorn of people such as Sir Frederick Upcott, the chief commissioner of the Great Indian Peninsular Railway, who promised to "eat every pound of steel rail [the Tatas] succeed in making". There is no record of where Sir Frederick was when the first ingot of steel rolled out off the plant's production line in 1912.
Jamshedji had been dead eight years by then, but his spirit it was, as much as the efforts of his son Dorab and cousin J. R. D. Tata, which made real the seemingly impossible.
The brick-and-mortar endeavours that Jamshedji planned and executed were but one part of a grander idea. How much of a man of the future he was can be gauged from his views about his workers and their welfare. Jamshedji offered his people shorter working hours, well-ventilated workplaces, and provident fund and gratuity long before they became statutory in the west. He spelled out his concept of a township for the workers at the steel plant in a letter he wrote to Dorab Tata in 1902, five years before even a site for the enterprise had been decided. "Be
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. sure to lay wide streets planted with shady trees, every other of a quick-growing variety," the letter stated. "Be sure that there is plenty of space for lawns and gardens. Reserve large areas for football, hockey and parks. Earmark areas for Hindu temples, Mohammedan mosques and Christian churches." It was only fair that the city born of this sterling vision came to be called Jamshedpur. Jamshedji's philanthropic principles were rooted in the belief that for India to climb out of poverty its finest minds would have to be harnessed. Charity and handouts were not his way, so he established the JN Tata Endowment in 1892. This enabled Indian students, regardless of caste or creed, to pursue higher studies in England. This beginning flowered into the Tata scholarships, which flourished to the extent that by 1924 two out of every five Indians coming into the elite Indian Civil Service were Tata scholars. The objective of creating the Indian Institute of
Science came from the same source, but here, as with the steel plant, Jamshedji had to endure long years of heartburn without getting any tangible recompense in his lifetime. Jamsetji pledged Rs 30 lakh from his personal fortune towards setting up the institute, drew up a blueprint of the shape it ought to take, and solicited the support of everyone from the Viceroy, Lord Curzon, to Swami Vivekananda to turn it into reality. Swami Vivekananda, in his backing of the idea, wrote in 1899, "I am not aware if any project at once so opportune and so far reaching in its beneficent effects has ever been mooted in India... The scheme grasps the vital point of weakness in our national well-being with a clearness of vision and tightness of grip, the mastery of which is only equalled by the munificence of the
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. gift that is being ushered to the public." Despite this and similar endorsements, it would take a further 12 years before the splendid Indian Institute of Science started functioning in Bangalore in 1911.
The hydroelectric project faced fewer hurdles, but that too could not be completed while Jamshedji was alive. Frank Harris put it succinctly in his biography when he wrote, "He was one whose work lived after him in such a way that it is well-nigh impossible to draw a dividing line between conception and maturity. The tributes paid to his memory always show how much the influence of the dead strengthened and inspired the deeds of the living." Of the ventures that did bear fruit while Jamshedji was alive, the Taj Mahal Hotel in Bombay has to rank highest. Legend has it that Jamshedji set his mind on building it after being denied entry into one of the city's hotels for being an Indian. His sons, friends and business associates were skeptical. His sisters chided him by asking, " Are you really going to build a bhatarkhana [eating house]?" The Taj turned out to be a bit fancier than that. By the time of its completion in 1903, it
had cost Rs 4.21 crore. Soaked in luxury, it was the first building in Bombay to use electricity and the first hotel in the country to have American fans, German elevators, Turkish baths, English butlers and whole lot of other innovative delights. Jamshedji's business successes shrouded the assortment of passions and commitments that he carried and nurtured across a fascinating life. He had an abiding love for Bombay, for travel and, most of all, for new ideas. His was a mind constantly seeking knowledge and daring to push the frontiers of achievement, right up to his demise in Germany in 1904. "Money is like fire, an element as little troubled by moralising as earth, air and water," said the American essayist Lewis
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. H. Lapham. "Men can employ it as a tool, or they can dance around it as if it were an incarnation of God." Jamsetji Nusserwanji Tata employed the wealth he created to enrich India and her people.
THE SMALL WONDER

TATA NANO.
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RATAN TATA UNVEILS THE TATA NANO

The car that promises to shake up the world automobile industry. The NANO from TATA Motors Nano, Indias first original contribution to the car industry, was unveiled on Thursday at a packed, near-stampede launch. As promised, its priced at Rs 1 lakh ($2,500).
The history-making car, which many industry observers predict will be a huge hit in emerging and even advanced markets, is already attracting world-wide attention with television channels in Europe and the UK telecasting the event live. Already, the launch of the Tata small car, the cheapest in the world, is being compared to seminal events such as the launch of Ford Model - T and Volkswagen Beetle.
Chairman Mr. Ratan Tata unveiled the Nano, without a doubt the truck and carmakers most ambitious product, in standard and deluxe versions. The theme from 2001: A Space Odyssey played in the background. The car will hit the market in the second half of 2008, close to the festive period.
The standard variant, sans air-conditioning and power steering, will have an exdealer price of Rs 1 lakh. Customers will have to shell out value-added tax and logistics cost from the factory. For Delhi buyers, therefore, the standard variant is likely to cost Rs 1.20 lakh (showroom), including local levies, registration and insurance charges.
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The car unveiled on Thursday represents the culmination of Mr. Tatas dream of offering the comfort and relative safety of a car to users who can afford a twowheeler. The four-door, four/five seater car is 8% smaller than the Maruti 800 externally but 21% more spacious internally, Mr. Tata said. It meets the frontal crash test norms mandatory in India.
The Nano has been designed to meet offset and side impact crash test norms required overseas. In emission terms, we can meet Euro 4 too with this engine, Mr. Tata said. The cars mileage, he said, will be 20 km per litre of Petrol or Diesel as the case may be.
Vendor sources said the AC version is likely to be launched around December, with a 60cc AC that will not place too much strain on the engine. It will be priced somewhat higher than the stripped-down variant, Mr. Tata said. Tata Motors is also planning diesel and hybrid versions of the Nano. By and large, weve always been a diesel company, so we will have a diesel version that will follow this variant soon after, Mr. Tata said.
The current engine is a 623 cc, two-cylinder, MPFI engine with single-balancer shaft and four-speed manual transmission. The top speed is around 105 km per hour. The power-train is packaged in the rear to increase interior space and improve maneuverability. Tata Motors is building a 250,000-unit plant, expandable to 350,000, at Singur that will be fulfilled before we look at satellite plants, Mr. Ratan Tata said in his speech.
The company is in the process of finalizing its distribution strategy for the Nano. It wont be traditional, we will remove some layers in distribution, sales and service, Mr. Tata said. We are working on the distribution, finance and services PRESIDENCY BUSINESS SCHOOL, BANGALORE
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. backup for the Nano. We already have the passenger vehicle model for our Indica and other utility vehicle range that will help us to frame a structure to deliver the car, he added. As for the price, its not an introductory offer. Its a promise and we will maintain the (Rs 1 lakh) price, Mr. Tata said. However, the deluxe variants will carry a higher price. Given its ability to adapt to different safety and emission standards, the Nano will likely hit different global markets as well. For the next two-three years, our focus will be India, Mr. Tata explained. If the car is a good value proposition, it will sell well not only in India but elsewhere too, and we would like to exploit that. Once the car does vroom abroad, Tata could either go for local assembly or exports, depending on the tariff structures in those markets. Although the Nano is an independent effort right now, Tata Motors is working with Fiat on different issues and geographies and we will see what that leads to, Mr. Tata said. The car, which was designed with inputs from the same Italian designer who worked on the Indica, uses design cues from the Tata family of vehicles. However, the effort was more collaborative this time and the entire design and packaging was done in India, Mr. Tata said. The car, which hit headlines across the world within hours of its launch, has used several innovative engineering processes that Tata Motors has patented. The company has applied for 34 patents on aggregates, which will be leveraged across its other platforms as well. Most engine parts have been patented, including the two-cylinder petrol engine with single-balancer shaft.
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The innovation drive will continue when Tata Motors moves to its satellite plant phase. We will send painted parts to these plants as kits that can then be put together using adhesives, Mr. Tata said. The company is also working on an automatic transmission, which isnt ready for unveiling yet.
Although the car is not segment specific, Mr. Tata said he hopes it will change the manner in which one travels in semi-urban and rural India. The Nano, he said, signifies Tata Motors ability to innovate. The car has met its cost target by being a tight efficient package. The Nano has been hailed by both industry and government as a breakthrough product. Commerce minister Kamal Nath, who was present at the inauguration, said, The car demonstrates to the world Indias technological, intellectual and entrepreneurial abilities. It will help the common man leapfrog from two legs to four wheels, bypassing two-wheelers.
For Mr. Tata, though, the toughest part is over. The hardest part was continuing to believe we could do it, he said. I never felt the project wont go through. I was scared I wont meet targets, price targets, time targets, the Auto Expo...on the 10th of January, he too can rest easy.
THE TEAM WHICH MADE THE NANO A REALITY
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A second point is that we initially conceived this as a low-end 'rural car,' probably without doors or windows and with plastic curtains that rolled down, a four-wheel version of the auto-rickshaw, in a manner of speaking. But as the development cycle progressed we realised that we could and needed to do a whole lot better. And so we slowly gravitated towards a car like everyone expects a car to be. The challenge increased exponentially; there was the low-price barrier, inflation, adding more features and parts to the vehicle, substantial changes in
basic raw materials What the team has been able to achieve, in the face of all these constraints, is truly outstanding. What does it mean to me? It means that we have in us the capability to undertake a challenge that many car companies have chosen not to address or have been unable to address.
A Breakthrough Car.
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. So, how did a company best known for its lumbering trucks (and much later, its sub-compact car, Indica) end up designing a "cute-as-a-bug" car that its rivals said could not be built to the target price of Rs 1 lakh? What sort of out-of-the-box thinking did the engineering team have to do? What were the rules of car making that they had to rewrite? Before we tell you that, here's a quick look at the team that built the Nano. The man in charge of the small car project is Girish A. Wagh, who was also very closely involved with the design of the Ace, a four-wheeler that serves as a load carrier. E. Balasubramoniam is the Head of Sourcing for the project. The graduate from IIT Madras is 45 years old and was earlier with Maruti Udyog (now Maruti Suzuki). Nikhil Jadhav, 29, is possibly the youngest member of the team. Jadhav, an alumnus of IIT Bombay, is the designer on the small car project. Abhay M. Deshpande is Tata Motors' Assistant General Manager-Vehicle Integration at the ERC. Deshpande, 44, is in charge of vehicle integration, vehicle performance and chassis design. Vendor development is what Rakesh Mital, 44, is in charge of. He was earlier with Yamaha Motors.
While the Nano's design has received rave reviews, the team had to go through several iterations before the style could be frozen. "The entire body was designed twice while the engine was designed thrice," points out Wagh. If that sounds surprising, the floor was designed 10 times and the seats too an equal number of times. Wagh recalls that the car's dashboard had two concepts running simultaneously. Both had detailed designs with respective to cost estimates. The one that was eventually chosen was what the Nano team thought would look more attractive to the customer. "There were two concepts and we thought the second one added more utility. We went for it since it was also more contemporary" says Tata Technologies' Industrial Designer, Nikhil A. Jadhav.
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. Some Tata group companies lent their resources for the small car project and Tata Technologies was one of them.
The car had three concepts to begin with. "We picked the one that we thought looked the best, and from that we made a full-scale model," says Jadhav. In mid2005, one model was completed, which then went through a stage of refinement. This was where the initial volume of the car was defined. "It was here where we got into details like lamps and doors. From that point onwards, we actually did another model, which was a second stage model. Eventually, a final refined model was done by design house, I.D.E.A., which was brought here." adds Jadhav. The style for the Nano was frozen in mid-2006-exactly a year after the first model was completed. Understandably, this stage was important since it had to be in line with the cost targets. From then, the story was about engineering development.
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Tata Engineering then decided it would attempt to produce the car on its own. In THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. taking this decision, it was emboldened by two factors:
1. The company has a record of having developed its own products. In the early '80s, Tata Engineering had developed a range of commercial vehicles -- the popular 407 and 709 series-- followed by the Tata Estate and Sierra, both built on a pick-up platform, and later by the Sumo and the Safari.
2. Mr. Tata's faith in the capabilities of the companys engineers, particularly its 500-odd young engineers, whose talent and skills, he said, is symptomatic of Indias spirit of wanting to dare. The basic concepts of the car were set out in 2002 - 03. The car should, it was decided, be designed around the specific needs of the Indian car owner and PRESIDENCY BUSINESS SCHOOL, BANGALORE 64 would have:
The inside space of an Ambassador (which is considered to offer the
of a Zen. Easy entry and exit for passengers; this meant a higher suspension and THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. raised back seats.

World-class standards of safety.
The economy of diesel. According to Wagh, every component in the Nano has been studied from a Price approximating the Maruti 800. functionality, cost and performance requirement. There was no other way to Contemporary design. reduce costs. From an outsourcing perspective, the company put in place an
Early these as Integration Programme. "We had a lot of design inputs from With Vendor the specs, the company's designers at its Engineering Research Centre (ERC) created vendors that either facilitated manufacturing or brought the cost down. This could some renderings (see illustrations alongside) of the be for lamps or seats, forand car which were refined example," says Balasubramoniam. Elaborating on the finalized in association with lamp, he explains that the design outsourcing for the the famous Milan-based surface was provided. "It was within house, I.D.E.A. that surface where the lighting mechanism had to be made operational" explains With the aid of a brief video clip, Mr. Tata gave a glimpse of the facilities at the Balasubramoniam. ERC. For the NANO, said Mr. Tata, ERCs designers and engineers had done their work entirely using computer aided design (CAD) stations and computeraided manufacturing (CAM). Tata Engineering has invested over Rs 120 crore on Nano is stations for its 340 - odd engineers to work on. The225 CAD completely indigenised, save for the fact that it will be using Korean and Japanese steel from Posco and JFE to begin with, as Tata Steel's expansion at Jamshedpur is not yet complete. Importantly, over 85 per cent of the vehicle will come from outside vendors. Tier-I ancillary manufacturers, based in and around the small car plant at Singur will manufacture complete sub-assemblies. The logic for this, says Wagh, is to make manufacturing as simple as possible. Balasubramoniam, meanwhile, has thus been flying all over the country, not only
Computer aided designs of the NANO.

to the three established 'auto' manufacturing belts in India the National Capital Region (NCR), Pune, Aurangabad, Nashik and Chennai but also to the upcoming small car plant in Singur to plan the layout of the vendor park. This is with the objective of ensuring those parts between vendors and the assembly line move smoothly and just in time.
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CANADIAN COMPANY TO SUPPLY AUTO PARTS FOR

Mr Tata then shared the details of the project to give some idea of its magnitude:
Total number Machinery who a Canada-based roll forming OTTAWA: Samco of engineers Ltd, worked on the NANO project: 500. system
THE NANO IN INDIA
manufacturer, will supply auto parts for Tata Nano, unveiled by the Tara Group last TimeSamco from partnered India's leading business approximately. Tatas to month. taken has conception to completion: 4 years conglomerate
Number of components ($2,500) developed Development 3,885. produce parts for the Rs 1 lakh specially car, Export for the NANO: Canada's Chief Number (India) Peter L Nesbitt said for the NANO: 740 Representative of dies specially manufactured while addressing the Telfer India Number of production fixtures created Forum at the University of Ottawa yesterday. for the NANO: 4,010
A large number of Canadian companies attended the function organised by Telfer School of Management of the University, Indo-Canada Ottawa Business Cost of the project: Rs 1,700 crore, sub-divided into: development Rs 206 Chamber and others. Telfer School of Management Dean Michael crore, tooling Rs 74 crore, and plant Rs 1,420 crore. J Kelly saidto the $400 million that Tata not miss great businesscreating the Compared Canadian companies should Engineering spent on avenues in NANO, Mr. Tata companies need of a new car in the West typically entails As India. **Canadian said, the creation to get a handle of this opportunity quickly. an investment of well over $1.5 - $2 billion in creating the production facilities, with a market, back office, researchinand region of $800 hub and source of future development and tooling costing the development million more. competitors, India should be on top of the mind for Canadian top executives,'' Professor Kelly added.
3.
REVIEW OF LITERATURE.
Customer Satisfaction is one of the most researched areas these days. It is the customer on whom the business thrives. A business organization is built around what a consumer wants and how to provide the same to the consumer. The field of customer research is of more importance in todays grain age of intense competition because one dissatisfied customer from a particular company is a potential customer of another company. One company tries to outperform the
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. other with the help of the existing customer base and on its ability to attract more potential customers. Various researchers have conducted research in this field, some of them are follows: The data services market in Chennai has conducted a survey, named Overview of the Automobile Industry. Demographic and Psychographic profile of Small car owners by P.K. Sexana. A study on Market analysis of mid sized cars, by P . John. Automobile Industry in India, by Punit Jain.
3.1.
SOURCES OF DATA.
PRIMARY DATA.
Primary Data refers to that data that has been for the first time afresh and recorded for the first time. Primary Data is that, which is collected by the researcher himself. It is absolutely original in nature. The data is collected for the
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. first time by the researcher himself, either through survey (i.e., The Questionnaire), or through direct and correct communication respondents. However, the basic form of collecting Primary Data is through Survey Method. The Primary Data for this study was collected through Questionnaires. with the
SECONDARY DATA.
Secondary Data is that data which has been collected by someone else in order to conduct research or for some other purpose. The said data that has been collected by someone else can be used for the purpose of research by someone else provided its really useful data. In simple terms interpretation of Primary Data is Secondary Data. Examples of Secondary Data are ; Published Literature Internet Books
Other Research Extracts relevant to the study. For the purpose of this research the following books were referred. Marketing Management by Philip Kotler, 12th edition. Services Marketing by Valartie. A. Zeithamal, and Mary Jo Britner 3rd Edition.
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Overdrive Magazine for the month of February, March and April 2008.
4.
4.1.
RESEARCH DESIGN
MEANING OF RESEARCH DESIGN
Research Design is the arrangement of conditions and analysis of data in a manner that aims to combine relevance to the research purpose with economy in the procedures. PRESIDENCY BUSINESS SCHOOL, BANGALORE 69
In other words it is a logical and systematic plan of preparing and directing a research study. It specifies the objectives of the study, the methodology, and the techniques to be adopted for achieving the objectives.
NATURE OF RESEARCH DESIGN

A research design is a very important for a research project unlike the building construction plan or a blueprint which is very precise. Even in case of automobile the designs need to be very precisely done. A Research Design is a Tentative Plan, with a series of guidelines to keep moving forward in a predetermined and said path ( the right direction). It undergoes modifications, as circumstances demand when the research study progresses. New aspects, and new conditions and new relationships come to light ( i.e., come up), as the research goes deeper. A research is purely and simply the plan or the framework for the study that guides the collection and analysis of the said data. As its already been
mentioned is like a blueprint that is followed in the completion of the research study. The process is as follows: The study must be relevant to the problem. ( i.e.,The Problem Statement) The study must employ economical procedures. Three important points to remember while preparing the research design.
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. The design of the study should be such that it stems or curtails the problem in its very path. The basic research design is, whether the design is productive in a given problem setting depends on how imaginatively and innovatively they are applied. An understanding of the basic design is needed so that they can be modified or altered to suit specific purposes.
4. 2.
TYPE OF RESEARCH.
i. Exploratory Research :Exploratory Research is used generally when one is not acquainted with the problem environment. In such cases the research is mainly concerned in determining the general nature of the problem and variables related to it.
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. Exploratory Research is an in-depth analysis of a specific problem. It is connected with the exploration into new fields and new frontiers. This kind of research is very flexible in nature and allows flexibility in operations to the researcher. Under this type of research, the experience of another researcher or a person who is knowledgeable or an expert is always considered and is known as Experience Survey. The above research is an exploratory research. In this research the project report of another researcher was used in order to collect valuable data for the research. It was not the same topic though but was related to the field of automobiles.
4.3.
DESIGN OF THE STUDY.
This chapter describes in brief the Design of the Study, beginning from the title of the study and goes on to explain the objectives, scope of the study, Methodology, Sampling, Analysis and finally the limitations of the study. This chapter also discusses about the sample size of 100 respondents.
4.4.
DATA GATHERING PROCEDURES.
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The data was primarily gathered through the internet source. Other than that friends and family members lent a helping hand in the data collection. The main source of the data for the analysis part was collected only through the Questionnaires, which was distributed to the respondents either directly or through the internet. A link was created on the internet Web Page, which directly linked the respondents to a site called FREEONLINESURVEY.COM, wherein the respondents could fill up the questionnaires at ease and automatically forward it back to me.
4.5.
DEFINITION OF THE POPULATION.
According to the sample size selected the break up of the sample size was on the basis of the following parameters, The respondents were basically the Middle Middle Class and the Lower Middle Class. The respondents were chosen on random basis. The respondents are basically employees, in the field of software, hardware, automobiles and other private and non private companies.
The sample size consists of 100 respondents who filled the questionnaire either directly or through the net.
4.6.
SAMPLE DESIGN.
Sampling is the selection of some part of an aggregate or totality, on the basis of which judgement is made. It is the process of obtaining information about
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. the entire population by examining a part of it. For the purpose of this study 100 respondents were surveyed to collect the Primary Data.
4.7. SAMPLE SIZE.

As mentioned above a total of 100 respondents were selected on random basis to form a part of the population. Most of them were from the field of software, hardware, automobiles and other private and non private companies.
4.8.
SAMPLING TECHNIQUES ADOPTED.
As Bangalore City is a Cosmopolitan city it becomes very difficult to cover 100% of the population as part of the research. This is because the population is in millions, and it is humanly impossible to cover the entire population given the limited period of time.
4.9. SCOPE OF THE STUDY.

Today the automobile industry is going through a revolution. Many big names of the automobile world have entered the Indian market and many are on the verge of doing of. This has given rise to intense competition among the companies within their respective segments. Companies like Ford, Toyota, Honda, Maruti, Skoda, FIAT, TATA, Hyundai, General Motors, Opel etc, are some of the companies that are competing world over in the
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. Small Car segment. However, it is important to know that companies like Ford, Toyota and Honda still do not have a Small Car in their Port Folio in India atleast. With this study we can get suggestions from the customers regarding service improvements in terms of quality and what is that they expect from the Small Cars available and some of which are yet to be introduced ( like the TATA NANO ), and also understand what new features are being provided in this segment. We can identify the causes of customer dissatisfaction with reference to factors such as Engine Noise, Accessories, Interiors, Spare Parts, Seating, Safety, etc.
4.10.
LIMITATIONS OF THE STUDY.
There are certain limitations of the study. They are, The users of Small Cars are geographically widespread, and hence contacting them is very difficult and time consuming.
The Sample Size of the survey is limited to 100, due to time constraints. The information collected may not be sufficient to draw a conclusion, as Bangalore represents only a small part of the entire population of the country.
Most of the respondents belong to the Middle Middle Class and the Lower Middle Class. Hence, the point of contact was another issue.
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. The non availability of data regarding users of Small Cars is another inconvenience as it leads to unproductive use of time. The TATA NANO, is yet to be launched and hence the analysis will be based on the personal opinion of the individuals.
4.11.
ANALYSIS AND INETRPRETATION.
After tabulating, the data must be analysed, for which usually statistical tools are used. Statistical interpretations show that responses vary widely and are distributed in relation to the variables being measured. The Analysis and Interpretation of Data leads to the researcher to accept or reject the Hypothesis being selected. But, in this study there is no Hypothesis testing as this is a current topic and possibly there has not been any research conducted on this topic, as the NANO is yet to be launched.
5.
CONCLUSION AND SUGGESTIONS.
CONCLUSION.
With the help of this research we are in better position to analyze the Automobile Market in the world and more so in India. The automobile sector is a revenue generator for the economy, anywhere in the world.
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. Since the world is shaping rapidly as a result of technological developments and advancements the needs of the customer is also changing drastically. This study is aimed at getting customer insights into what the customer is expecting from the Small Car Segment in the Automobile Industry the world over. Talking about the TATA Group, a company which was founded by the Late. Jamshedji Tata, and the business has been carried on by the descendents of the TATA Family. The business has grown and diversified itself and has also made India proud on the global stage by its sheer performance and growth. Today, the TATAs are acquiring global firms oversees from Chorus in Europe to JLR ( Jaguar and Land Rover), in Britain from FORD Motor Corporation.
RECOMMENDATIONS.
From the study certain recommendations can be derived at for the automobile manufacturers. They are, Spacious :-
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. The space for those setting in the rear seats should be increased as it is not comfortable at present for an average sized man to spread his legs. Moreover the space for luggage is also limited, and in most cases not sufficient. Safety Aspects :Today most of the luxury cars around the world comply to strict safety regulations, such as SRS Airbags, Side Impact Beams, Seat Belts, etc, which unfortunately is not available in the Small Car segment in India. This should be made available. Battery Life and Quality :Some customers considered that the quality of batteries that are found in the cars these days are not of good quality. In some cases when the car is not started for 2 3 days they actually found it difficult to start the car. Hence, the battery and the battery charger must be of good enough quality.
BIBLIOGRAPHY
1. BOOKS REFERRED. Marketing Management by Philip Kotler, 12th Edition.
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. Services Marketing by Valartie. A. Zeithamal, and Mary Jo Britner 3rd Edition.
2. MAGAZINES. Overdrive Magazine, February 2008. Business World. Outlook. 3. OTHER SOURCES. The Internet. Newspapers. NDTV Car and Bike Show Auto Reviews. CNN IBN, Auto Review.
QUESTIONNAIRE
NAME :AGE :GENDER :OCCUPATION :E Mail ID :MALE. FEMALE.
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ANNUAL SALARY.
Rs. 200,000 250,000.
Rs. 250,001 300,000.
Rs. 300,001 350,000.
MORE THAN Rs. 350,000.
Please Note: This Questionnaire is for only those who either own a car or are planning to buy another one. If there is someone who does not own a car but is planning to buy one can attempt this questionnaire. (The answers you give will be used as a base for the analysis and interpretation of data. I here by request you to fill in the questionnaire with outmost of carefulness. I also assure the privacy of the answers given by you, and will not be used else where for any other purpose).
Q 1. Do you own a car ? Yes ( ). No. ( ).
Q 2. Which car do you own, please specify.
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. Q 3. Which segment of cars do you prefer the most? Small Car Segment ( ). Station Wagon ( ). Medium Size Car Segment ( ). Luxury Car Segment ( ).
Q 4. Who all contribute while making the decision to purchase a car. Spouse ( ), Friends ( ), Colleagues ( ), Self ( ). Children ( ),
Other Family Members ( ),
Q 5. Are you aware of the new small wonder of the four wheeler market called the NANO from TATA. Yes ( ), No ( ).
Q 6. If yes, would you consider purchasing the TATA NANO, for yourself and why Yes ( ), No ( ).
Q 7. What are your reactions about the TATA NANO, in the context of the car market in India, please specify.
Q.8. Do you think the TATA NANO can and will be as big a success, as it is being speculated right now, why? Yes ( ). No ( ).
Q 9. What features do you consider in a car before making the purchase decision, and would it be the same in case of the TATA NANO.
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Fuel efficiency ( ), Power Delivery ( ), Comfort ( ), Driving & Control ( ), Safety ( ), Engine Options ( ). Others, Please Specify.
Q.10. Do you think for a car which costs just 1. Lakh, the safety aspects have not been fully taken care off. Yes ( ), No ( ).
Q.11. Do you think the TATA NANO, will affect other Carmakers in the market in the same segment, like Maruti and Hyundai Fiat and Chevrolet. Yes ( ), No ( ).
Q.12. Just like the above is the TATA NANO, likely to affect the Two Wheeler sales in the Country and more so in Bangalore. Yes ( ), No ( ).
Q.13. What do you thing will be the reaction of the competitors, especially Maruti Suzuki and Hyundai. Price Cuts ( ), Will Produce A Cheap Car ( ), Will Not Change the Strategy ( ), Will adopt some other strategy ( ). Q.14. The TATA NANO, is targeted at the TWO WHEEL, users, do you think the TWO WHEEL users will actually consider purchasing the TATA NANO.
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. Yes ( ), No ( ).
Q.15. TATA group intends to sell One Million, NANOs in the first one year. Do you think it is possible given the fact that no carmaker has done this before in India atleast. Yes ( ), No ( ).
Q.16. What do you think will be the impact of the TATA NANO on the already chaotic traffic situation in Bangalore City. Please Specify.
Q.17. According to you is Bangalore City ready to deal with more traffic volume, when the TATA NANO eventually hits the road. Yes ( ), Your Comments, if any. No ( ).
Q.18. What do you think will be the major drawback of the TATA NANO. Poor Quality Of The Final Product ( ), The Price ( ),
Other Carmakers Competing In The Segment ( ).
Q.19. Do you think the launch of the TATA NANO, will affect the Alliance between
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA. TATA and FIAT. Yes ( ), No ( ).
Q.20. Hyundai Motors very openly condemned the NANO, do you think that will impact the consumer preferences in any way, why ? Yes ( ), No ( ).
Q.21. Would you like to comment on the overseas potential of the TATA NANO.
Q. 22. Small Cars benefit due to the exemption to a limit on Excise Duties, will this help the TATA NANO to generate more sales. Yes ( ), No ( ).
Q.23. With Honda, Toyota and Ford planning a small car for the Indian market, do you see any potential competition for the TATA NANO. Yes ( ), No ( ).
Q.24. Is there any other foreseen competitor for the TATA NANO, from an overseas market according to you. Yes ( ), No ( )
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Please encircle any one number in the following questions based on your preference for questions numbered 25, 26,and 27. Each of the numbers denotes the following. 1. Very Good. 2. Good. 3. Fair. 4. Average. 5. Below Average. 6. Poor. Q.25. What do you feel about the durability of the TATA NANO, given the road conditions in India 1. 2. 3. 4. 5. 6.
Q.26. What do you feel about the companys promised 20 kmpl fuel efficiency of the TATA NANO.
1.
2.
3.
4.
5.
6.
Q.27. What would be your comments on the EURO IV, emission norms commissioned in the TATA NANO. 1. 2. 3. 4. 5. 6.
Q.28. Do you have any suggestions for the TATA NANO to be a success in the market as it is being speculated right now.
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THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA.

PRESIDENCY BUSINESS SCHOOL, BANGALORE

THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA.

PRESIDENCY BUSINESS SCHOOL, BANGALORE

THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA.

PRESIDENCY BUSINESS SCHOOL, BANGALORE

THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA.

PRESIDENCY BUSINESS SCHOOL, BANGALORE

THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA.

PRESIDENCY BUSINESS SCHOOL, BANGALORE

PRESIDENCY BUSINESS SCHOOL, BANGALORE

THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA.

1.3 THEORITICAL BACKGROUND OF THE STUDY

PRESIDENCY BUSINESS SCHOOL, BANGALORE

PRESIDENCY BUSINESS SCHOOL, BANGALORE

THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA.

PRESIDENCY BUSINESS SCHOOL, BANGALORE

PRESIDENCY BUSINESS SCHOOL, BANGALORE

PRESIDENCY BUSINESS SCHOOL, BANGALORE

THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA.

PRESIDENCY BUSINESS SCHOOL, BANGALORE

PRESIDENCY BUSINESS SCHOOL, BANGALORE

THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA.

1.4 NEED FOR THE STUDY

Objectives of the Study

PRESIDENCY BUSINESS SCHOOL, BANGALORE

THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA.

PRESIDENCY BUSINESS SCHOOL, BANGALORE

PRESIDENCY BUSINESS SCHOOL, BANGALORE

The evolution of the Automobile Industry.

PRESIDENCY BUSINESS SCHOOL, BANGALORE

THE ERA OF THE 1980s

Limited Choice. Restriction on Capacities. License Requirements. High Import Duties.

THE ERA OF THE 1990s

PRESIDENCY BUSINESS SCHOOL, BANGALORE

PRESIDENCY BUSINESS SCHOOL, BANGALORE

THE BIRTH OF THE AUTOMOBILE.

PRESIDENCY BUSINESS SCHOOL, BANGALORE

PRESIDENCY BUSINESS SCHOOL, BANGALORE

PRESIDENCY BUSINESS SCHOOL, BANGALORE

PRESIDENCY BUSINESS SCHOOL, BANGALORE

EARLY ELECTRIC CARS

PRESIDENCY BUSINESS SCHOOL, BANGALORE

PRESIDENCY BUSINESS SCHOOL, BANGALORE

THE BIRTH OF THE CAR

PRESIDENCY BUSINESS SCHOOL, BANGALORE

PRESIDENCY BUSINESS SCHOOL, BANGALORE

FIRST INDIAN TO BY A CAR

THE GLOBAL CAR MARKET

PRESIDENCY BUSINESS SCHOOL, BANGALORE

THE SMALL CAR SEGMENT.

THE MEDIUM CAR SEGMENT.

PRESIDENCY BUSINESS SCHOOL, BANGALORE

THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA.

THE LUXURY CAR SEGMENT.

PRESIDENCY BUSINESS SCHOOL, BANGALORE

THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA.

The Problem Faced by the Automobile Industry in India Today.

PRESIDENCY BUSINESS SCHOOL, BANGALORE

PRESIDENCY BUSINESS SCHOOL, BANGALORE

PRESIDENCY BUSINESS SCHOOL, BANGALORE

THE IMPACT OF TATA NANO ON THE AUTOMOBILE INDUSTRY IN INDIA.

SMALL CAR MANUFACTURERS