Project Report

ON

SHRI RAM COLLEGE OF COMMERCE

SUBMITTED TO: SUBMITTED BY:Mr. R. P. Rustagi Name:Rachita JainAssociate Professor Course:B.Com (Hons.) Department of Commerce Class: III year Section I

Roll no.: 314 Year: 2010- 11

Signature: Signature:

(Mr. R. P. Rustagi) (Ms. Renu Agarwal)

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DECLARATION

I hereby declare that my project report on “TATA Nano” is an authentic work carried

out by me under the guidance of Ms. Renu Agarwal under the partial fulfillment of

the degree of B. Com (Honours) and has not been submitted anywhere else for the

award of any other degree or diploma. I have mentioned the source of information

wherever required.

Rachita Jain

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ACKNOWLEDGEMENTS

i wd also like to

I owe a great many thanks to a great many people who helped and supported me

during the compilation of this project.

I extend my deepest gratitude to Mr. R. P. Rustagi, my Mentor for the

project, for guiding and correcting various documents of mine with attention and

care. He has taken pain to go through the project and to make necessary corrections as

and when needed.

I express my thanks to the Principal of Shri Ram College of Commerce for extending

his support.

Thanks and appreciation to Ms. Akriti Bhargava for her help and cooperation in

completing and organizing the survey on Twitter. She is working with the “One

Learn” on Twitter.

I would also thank my Institution and my faculty members without whom this project

would have been a distant reality. I also extend my heartfelt thanks to my family and

well wishers.

Rachita Jain

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CONTENTS

Serial Number

Topic

1 Industry Analysis- Automobile Industry in India

2 TATA Motors

3 TATA Nano- Introduction

4 Features of TATA Nano

5 Versions of TATA Nano

6 What makes the TATA Nano so cheap

7 The Controversies and The Concerns

8 The making of TATA Nano- In brief

9 Launch of TATA Nano

10 Comments about TATA Nano

11 Effects of launch of TATA Nano

12 SWOT Analysis

13 Questionnaire Results

14 Conclusion

15 Bibliography

16 Appendix

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INDUSTRY ANALYSISAUTOMOBILE INDUSTRY IN INDIA

The Automotive Industry in India is one of the largest in the world and one of the

fastest growing globally. India manufactures over 11 million 2 and 4-wheeled

vehicles and exports about 1.5 million every year. It is the world's second largest

manufacturer of motorcycles, with annual sales exceeding 8.5 million in 2009. India's

passenger car and commercial vehicle manufacturing industry is the seventh largest in

the world, with an annual production of more than 2.6 million units in 2009. A

number of domestic companies produce automobiles in India and the growing

presence of multinational investment, too, has led to an increase in overall growth.

Following the economic reforms of 1991, the Indian automotive industry has

demonstrated sustained growth as a result of increased competitiveness and relaxed

restrictions. In 2009, India emerged as Asia's fourth largest exporter of passenger cars,

behind Japan, South Korea and Thailand.

As of 2009, India is home to 40 million passenger vehicles and more than 1.5 million

cars were sold in India in 2009 (an increase of 26%), making the country the second

fastest growing automobile market in the world. By 2050, the country is expected to

top the world in car volumes with approximately 611 million vehicles on the nation's

roads.

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Automobile Production Trends (Number of Vehicles)

Category 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Passenger Vehicles

989,560 1,209,876 1,309,300 1,545,223 1,777,583 1,838,697 2,351,240

Commercial Vehicles

275,040 353,703 391,083 519,982 549,006 417,126 566,608

Three Wheelers

356,223 374,445 434,423 556,126 500,660 501,030 619,093

Two Wheelers 5,622,741 6,529,829 7,608,697 8,466,666 8,026,681 8,418,626 10,512,899

Grand Total 7,243,564 8,467,853 9,743,503 11,087,997 10,853,930 11,175,479 14,049,830

Automobile Export Trends (Number of Vehicles)

Category 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Passenger Vehicles

129,291 166,402 175,572 198,452 218,401 335,739 446,146

Commercial Vehicles

17,432 29,940 40,600 49,537 58,994 42,673 45,007

Three Wheelers 68,144 66,795 76,881 143,896 141,225 148,074 173,282

Two Wheelers 265,052 366,407 513,169 619,644 819,713 1,004,174 1,140,184

Grand Total 479,919 629,544 806,222 1,011,529 1,238,333 1,530,660 1,804,619

SOURCE: SIAM (SOCIETY OF INDIAN AUTOMOBILE MANUFACTURERS – ISO 9001-2008 CERTIFIED ORGANISATION)

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TATA MOTORS

Tata Motors is India's largest automobile company, with revenues of US$ 8.8 billion

in 2007-08. Through subsidiaries and associate companies, Tata Motors has

operations in the UK, South Korea, Thailand and Spain, besides India. Among them

are Jaguar Land Rover, and an industrial joint venture with Fiat in India. With over 4

million Tata vehicles plying in India, Tata Motors is the country’s market leader in

commercial vehicles and among the top three in passenger vehicles. It is also the

world's fourth largest truck manufacturer and the second largest bus manufacturer.

Tata cars, buses and trucks are being marketed in several countries in Europe, Africa,

the Middle East, South Asia, South East Asia and South America.

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TATA NANOAN INTRODUCTION

Tata Nano- THE PEOPLE’S CAR- is a comfortable, safe, all-weather car,

high on fuel efficiency & low on emissions.

“I observed families riding on two- wheelers -- the father driving the scooter,

his young kid standing in front of him,

his wife seated behind him holding a

little baby. Add to that the slippery

roads & Night time too. It is downright

dangerous. It led me to wonder

whether one could conceive of a safe,

affordable, all-weather form of

transport for such a family.” said Mr Ratan Tata, the chairman of Tata

Motors, who laid the foundation for creation of the World’s cheapest car.

Providing a car worth rupees one lakh was the dream of the chairman of Tata

Motors, Mr. Ratan Tata. And with high qualified IT skills he has shown the

Indian talent to the whole world.

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OLD GENERATION NEW GENERATION

The advent of Nano represents a victory for those who advocate making cheap goods

for potential customers at the "bottom of the pyramid" in emerging markets. Most of

all, it gave millions of people, now relegated to lesser means of transportation, the

chance to drive cars. The project has literally become India's claim-for-fame in the

international-media due to Tata Motors' innovation in developing the car, as well as

keeping it low in price. The car itself is expected to boost the Indian Economy, create

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entrepreneurial-opportunities across India, as well as expand the Indian car market by

65%.

FEATURES OF TATA NANO

Length 3.1 metres

Width 1.5 metres

Height 1.6 meters

Engine All-aluminium, Rear Mounted, Rear Wheel Drive

Capacity 623 cc

Power 33 PS

Fuel Injection Multi Point Fuel Injection (MPFI)

Fuel Type Petrol, Diesel Version will be later

Body Type Sheet Metal

Seating Capacity 04 (Four)

Mileage 20-22 Kmpl (City drive)

26 Kmpl (Highways)

Top Speed 75 K.M

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Emission Norms Euro-IV, Bharat Stage-III compliant

Safety Norms Frontal Crash Tested

Versions One Standard and Two Deluxe

VERSIONS OF TATA NANO

Tata Nano Standard

Tata Nano Diesel Standard

Tata Nano Deluxe

Tata Nano Diesel Deluxe

Tata Nano Luxury

Tata Nano Diesel Luxury

TATA NANO LUXURY

TATA NANO BASIC

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WHAT MAKES THE TATA NANO SO CHEAP

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THE CONTROVERSIES AND THE CONCERNS

THE SINGUR CONTROVERSY

LOCATION OF SINGUR:

Singur is a census town in Hooghly district in the Indian state of West Bengal.

Singur railway station is 34 km from Howrah Station on the Howrah-Tarakeswar

line. It is 2 km ahead of Kamarkundu junction, the crossing point of Howrah-

Bardhaman chord and Howrah-Tarakeshwar lines. It is on the Durgapur

Expressway/ NH 2.

WHY SINGUR?

For a long time many of us used to wonder as to what made Mr. Tata choose West

Bengal in the first place.

Let’s take a look at some of the incentives offered by the West Bengal government to

the Tata Motors:

1. Rs 200 crore loan to Tata Motors at 1 percent interest per annum, repayable in

five equal annual installments starting from the 21st year of the date of

disbursement of loan. This loan was released within 60 days of the signing of

the agreement.

2. Power for the project was to be supplied at Rs 3 per KwH, as against the going

rate of around Rs 4.15 per KwH. In the case of a more than 25 paise per KwH

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increase in tariff in every block of five years, the government would provide

relief through additional compensation to neutralize the additional increase. In

effect, therefore, the project would have continued to get power at Rs 3 per

KwH, irrespective of the market rates.

3. The WB Government had also agreed to provide 645.67 acres to Tata Motors

on a 90-year lease on an annual rent of just Rs 1 crore for the first five years

and with an increase at the rate of 25 per cent every five years till 30 years.

After 30 years, the rent would have been fixed at Rs 5 crore a year with an

increase at the rate of 30 per cent after every 10 years till the 60th year. After

that the rent was to be Rs 20 crore a year.

4. Now, coming to fiscal incentives, the WB Government had agreed to provide

excise exemption for the first 10 years and 100 per cent income tax exemption

for the first five years and 30 per cent for the next five years, on par with the

incentives offered by Uttarakhand.

THE CONTROVERSY:

Tata Motors has been occupying the

headlines more for the Singur controversy

than for the Nano. Singur car factory land

dispute arose as Tata's planned

manufacturing unit for the car in Singur,

where the state government of West Bengal

had allocated 997 acres to Tata Motors. The

construction for this factory on which the

Nano was supposed to be coming up started

in the month of July 2007 but soon faced

opposition from a political party. The Trinamool Congress, led by Mamata Bannerjee,

protested against the manufacture of the car and the plant saying that the land was to be

used for agrarian purposes and was wrongfully allotted to Tata Motors for making the

Nano. There were protests all over the state and even in the capital city of New Delhi.

Activists of the Trinamool Congress stood outside the main gate of the plant and

protested against any work in the plant.

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For completing their Nano project in West Bengal the Tata motors had invested a

lot of money and if they shifted their plant from West Bengal to other states then

they would have to bear a loss of approximately 1000 crore rupees . This is

because they had assembled their machinery in Singur plant for manufacturing the

Nano car.

But due to continued agitation, Tata Sons chairman Mr. Ratan Tata on 2nd October,

2008 officially announced that Tata Motors would be pulling out of Singur for the

security of their officers was of paramount importance to them and the states of

Karnataka, Maharashtra as well as Gujarat were being looked at as viable options for

the setting up of the Tata motors factory.

Finally Gujarat was taken up as the apt place for building a new factory. West

Bengal’s loss turned out to be Gujarat’s gain. Ratan Tata was quoted saying in a

paper, whether the people of West Bengal wanted jobs or lawlessness. Pranab

Mukherjee the external affairs minister of the country had said that if a group like

Tata motors exited the state of west Bengal it would be a great setback for them and

the industrialization of the state.

But the controversy, though financially is backbreaking, it hasn’t diluted the brand

Nano. In fact, it has made Nano a huge brand even before its launch. In

every article on Singur, the Tata Nano model is invariably mentioned. Nano was

covered extensively by world media when it was launched and except for one-full

page advertisement Tata did not spend on advertising for Nano at all. Yet, Nano is a

household name today, thanks to the controversy and the Analysts estimate that the

buzz created by the free publicity for Nano is worth over Rs 500 crores.

In fact what we feel is that Nano is on everyone’s mind but the production has been

hampered by this controversy. The new facilities are not yet ready which will lead to

delays in time schedules. Adding to this, the waiting list is very long and increasing

rapidly. Failure of order delivery on time will create disappointments all around. Also,

the losses of over Rs 500 crores will surely put pressures to keep the price at Rs 1

lakh. The price will not be sustainable and there will be likely price hikes following

the introductory offers.

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POLLUTION AND SAFETY CONCERNS

Critics of the car have questioned its safety in India (where reportedly 90,000 people

are killed in road-accidents every year), and have also criticized the pollution that it

would cause. They fear that the car will increase the number of cars in Indian roads

significantly and thus the amount of emission will be increased as well as accelerating

the global warming. Tata’s competitors are not that much satisfied with the launch of

their new product indicating its safety concern.

Nano is Bharat III and Euro IV complaint. It has lower carbon footprint, 20 mg / Km

of Carbon Dioxide emission as compared to 45mg / Km, emitted by most of the two

wheelers. The high fuel efficiency (20 km/litre) also ensures that the car has low

carbon dioxide emissions, thereby providing the twin benefits of an affordable

transportation solution with a low carbon footprint.

Tata has also said that Nano has an all sheet-metal body, with safety features such as

crumple zones, intrusion-resistant doors, seat-belts, strong seats and anchorages,

tubeless tyres and the rear tailgate glass bonded to the body. It meets the frontal

impact requirement and also the side impact requirement (although they are not

mandatory in India).

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THE MAKING OF TATA NANO: IN BRIEF

March 2003: Ratan Tata discloses plans to launch the world’s cheapest car at Rs 1

lakh at Geneva Motor Show.

May 2006: Tata Motors announces setting up Nano manufacturing unit at Singur in

West Bengal with initial investment of Rs 1000 crore spread over 700 acres; scaled up

to 1,000 acres with total investment of Rs 1,500 crore.

Oct 2006: Trinamool Congress opposes Tata Motors’ plans to set up factory at

Singur, calls 12-hour state-wide bandh alleging forcible acquisition of farmers’ land.

Dec 2006: Violence mars Singur, five hurt in rubber- bullet firing. Mamata Bannerjee

goes on indefinite hunger strike, which was called off after 25 days following appeals

from the Prime Minister and the President.

Jan 2007: Land puja offered at Singur car project site

Feb 2007: Police-mob clash at Singur.

Mar 2007: WBIDC signs a 90-year agreement with Tata Motors for Nano plant;

farmer commits suicide; mob attacks proposed site; bomb explosion damages fencing

May 2007: Peace talks between state government and Trinamool Congress fail; one

more farmer commits suicide

June 2007: CPI(M) patriarch Jyoti Basu echoes Mamata Banerjee’s demand that only

600 acres is required for the Singur project instead of 1,000 acres, but state

government rules out returning Singur project land to farmers

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Nov 2007: Central forces deployed at Singur after fresh protests

Jan 2008: Ratan Tata unveils Nano at Auto Expo in Delhi; Calcutta High Court

orders Singur land acquisition legal

Mar 2008: Nano showcased at Geneva Motor Show

May 2008: Supreme Court refuses to stay Nano roll-out from Singur

June 2008: Singur protesters break factory gate

Aug 2008: Talks between West Bengal Chief Minister Buddhadeb Bhattacharjee and

Mamata Banerjee, who demanded return of 400 acres to farmers, fail. Subsequently,

Ratan Tata threatens to exit from Singur. It was followed by Trinamool Congress’

indefinite dharna. Factory workers stay away from work after assault.

Sep 2008: WB Governor Gopal Krishna Gandhi intervenes. Agreement signed

between state government and Trinamool Congress but it is shortlived. Mamata

Banerjee holds rally demanding return of 300 acres of land. Security guards at Singur

factory attacked.

Oct 2008: Ratan Tata formally announces pulling out of Nano plant from Singur and

days later declares Sanand at Gujarat as the new manufacturing location for Nano at

an investment of Rs 2,000 crore

Feb 2009: Tata Motors announces launch date of Nano to be March 23.

Mar 2009: Ratan Tata unveils European version of Nano with added features and

complying with Euro V emission norms at the Geneva Motor Show; Nano makes

commercial debut.

Mar 2009: Tata Motors launches the Nano in India.

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LAUNCH OF TATA NANO

"I made a promise and I kept that promise," Ratan Tata, chairman of Tata Motors,

said at a glitzy launch party Monday, March 23, 2009. "I dedicate this car to the youth

of India who designed it and will use it to transport their families. It shows that

nothing is really impossible if you set your mind to it."

Tata Nano is an amazing innovation, perhaps the best automobile innovation of 2009.

To pack an entire car for such a rock bottom price is next to impossible for any car

company in today's marketplace. Tata has started something that will overhaul the

small car industry. If Tata Nano is a wild success, if the owners love the new car, if

the car lives up not only to its looks but also on important metrics such as safety, ride,

handling, fuel economy, and quality, and if Tata is able to create the Nanos in hordes

to satisfy the appetite and dreams of the Indian buyers - well, we may be witnessing

the beginning of at least a $1 billion enterprise in the making.

People are so happy with the Nano launch that they just cannot stop talking about it.

Nano bookings have now opened and just in one day the small wonder car received

over 650 bookings across various Tata dealerships in Bangalore.

On the first day itself a huge crowd gathered near the Tata showrooms in the city and

dealerships were buzzing with potential Nano buyers. The queue to buy the world’s

cheapest car was growing throughout the car as more and more people joined the mob

including city’s IT professionals, bus drivers, and auto drivers. To your surprise many

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of the dealerships also experienced bookings from first time car buyers. And this was

what Ratan Tata dreamt for when he saw the vision of producing an ultra-cheap car.

Scores of people have made booking for the standard and the top-end variant of the

Tata Nano. Most interesting experience for the dealership was that many of the buyers

are personally financing the full cost of the car and only a few are opting for a car

loan. To ease the finance needs of these people Tata Motors Finance is offering a

1005 loan amount at an interest rate of 12-13% with for a period of 3 years.

The booking of Nano was closed on April 25, 2009. After the closure of the booking,

selection was made through a random computerized process in which 100000

applicants were selected who would buy the Nano in the first phase.

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STP ANALYSIS

Tata Motors has identified a distinctive strategic position for itself in the small-car

industry, segmenting the market by end-user. The Nano will target two-wheeler and

three-wheeler users, and also woo individuals looking for a second car and second

hand car.

S EGMENTATIO N

As far as the geographic segmentation is concerned, all of India will be the

target market. Mainly the semi-rural and semi-urban areas will be targeted.

There is also a plan to segment the market on the basis of income levels for

demographic classification.

For the psychographic segmentation, personality type of people will be

considered.

Actually, Tata Nano is going to create a new market segment in Indian market.

It is expected to lessen the difference in price level between two wheelers and

four wheelers. So, industry analysts are thinking that the market of two

wheelers will be affected with the advent of Tata Nano.

T ARGETING

Geographic - the main target audience will be people living in the Tier 2

(which includes 3800 cities & towns), Tier 3 (around 597 districts) areas.

Demographic - Lowest 60% of people (income-wise) account for 33.4% of

total expenditure in India and it is this group that will be planned to tap.

Psychographic - The Aspirers’ (Having income Rs.90000-Rs.200000) account

for 21.9% of Indian households and Seekers (Having income Rs. 200000-

Rs.500000) account for 4.8%. 47% of aspirers and 70% of seekers own two-

wheeler and the plans are to persuade them to upgrade to Car.

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Urban Tier 1 Tier 2 Tier 3 Tier 4 Tier 5

Top 10% Next 14% Next 24% Next 33% Last 18%

Households in millions

6 8 15 20 11

Two wheeler ownership

% of

tier

66.3 50.2 31.5 11.3 3.6

Rural Tier 1 Tier 2 Tier 3 Tier 4

Households in millions

Top 4% Next 10% Next 35% Last 50%

6 8 15 20

Two wheeler ownership

% of tier 43.1 24.6 8.3 2.2

Why would a person owning two-wheeler buy Tata Nano?

With a Rs 30,000 down payment, one can take a loan of around Rs 1 lakh and EMI

works out to be around Rs 3,716 per month. With just Rs 3,700 per month on an EMI,

anybody can afford this product. As far as the shift is concerned, initial estimates is

around 10% of the two-wheeler market can actually shift towards the small car.

How will Tata Nano affect used car market?

What is felt is that used car market won’t be affected initially as people who want to

buy a second hand car won’t have the patience to wait. Already the production has

been delayed due to various reasons so the waiting period is bound to increase. But as

the production facilities are utilized to maximum capacity, the waiting period will

come down and it is at that time, I feel, the second hand car market will be affected.

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P OSITIONING

1. “SMALL CAR WITH BIG DREAMS”

2. “MANZIL KI ORE PEHLA KADAM”

POP & POD

Points of Parity (POP)

Safety features

For Luxury variant - Features like Power windows, AC , Power steering will

be available

Well designed Car available in attractive colors.

Fuel Efficiency

Points of Difference (POD)

Affordability (Purchase & Maintenance of the car)

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COMMENTS ABOUT TATA NANO

"It's a good historic moment for the Indian auto industry and also a proud one

indeed that an Indian company took a step forward on this road. Its an up

gradation for an auto wheeler rider to by a car now.”

- Rajesh Jejurikar, Managing Director, Mahindra and Renault's.

"It's good product but it's still too early to say whether it will overtake the 800

because it caters to a totally new market segment.”

- Jagdish Khattar, Former MD of Maruti Udyog Limited

"Meeting the proper quality standards and safety is not feasible at all in such a

model.”

- Andreas Prinz, Managing Director (Passenger Cars),

Volkswagen Group Sales India.

"I think it is a great thing for India because mobility is giving new opportunities.

I hope Tata drives to great success with the Rs one lakh car, but it is not included

in our plan.”

- Thomas Kuehl, Board Member, Skoda Auto India.

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EFFECTS OF LAUNCH OF TATA NANO

The introduction of a cheap, mass market auto such as the Nano is bound to have

some unforeseen effects.

Safer Travel

Nano is safer than the currently used two wheelers, especially during monsoon, when

heavy rains can make travelling difficult on a two-wheelers due to wet roads.

Pollution increase

As the Nano was designed for a population currently using eco-friendly bicycles and

motorcycles, environmentalists are concerned by the increase in pollution that would

follow a mass motorization in developing countries such as India.

The Nano has far lower emissions compared with developed country autos, however.

Indian used car market

The Nano is thought to have affected the used car market in India, as many Indians

may opt to buy a Nano rather than a used vehicle. The new-car market is also being

affected. Sales of new Maruti 800s, the second-cheapest car in India, dropped by 20%

and used models by 30% immediately prior to the Nano's introduction.

AWARDS

2010 Business Standard Motoring Indian car of the year

2010 Bloomberg UTV-Autocar car of the year

2010 Edison Awards, first place in the transportation category

IN THE MEDIA

"Small Wonder: The Making of Nano", is a book on creation of Tata Nano.

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QUESTIONNAIRE RESULTS

The questionnaire is given in Appendix A. 50 respondents were interviewed. The

questionnaire was basically developed to understand how people perceive Tata Nano,

so that suitable marketing communications strategies could be developed.

The following observations were made and conclusions drawn from them:

1. Age of the respondents

80%

7%7%

7%

AGE

18 - 25

26 - 40

41 - 50

50 +

This chart shows that most of the respondents were in the age group of 18 to 25 years.

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2. Income of the respondents

80%

7%7%

7%

INCOME

Less than 1,50,000

1,50,000 - 2,50,000

2,50,000 - 5,00,000

More than 5,00,000

Most of the respondents were in the income group of less than 1,50,000. This is the

main for Tata Nano.

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3. Do you know about the features of Tata Nano?

90%

10%

KNOWLEDGE ABOUT THE FEATURES

YES

NO

This shows that word of mouth publicity is already in progress for Tata Nano.

4. Which of the following options do you prefer?

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20%

47%

33%

PREFERENCE

Neither a two wheeler nor a four wheeler

A two wheeler

Tata Nano

Four wheeler other than Tata Nano

Since most of the respondents were young and within the income group of less than

1,50,000, the maximum response for preference was for Tata Nano.

5. How do you rate Tata Nano on the following attributes?

Prestige

13%

60%

10%

13%3%

PRESTIGE

1 - Very Bad

2 - Bad

3 - Neutral

4 - Good

5 - Very Good

Tata Nano does not fare well in the prestige aspect.

Safety

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10%

20%

10%50%

10%

SAFETY

1 - Very Bad

2 - Bad

3 - Neutral

4 - Good

5 - Very Good

Tata Nano was perceived as a safe car by most of the respondents.

Economy

3%7%

90%

ECONOMY

1 - Very Bad

2 - Bad

3 - Neutral

4 - Good

5 - Very Good

The lowest priced car in the world has to be economical.

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Family car

3%23%

60%

7%7%

FAMILY CAR

1 - Very Bad

2 - Bad

3 - Neutral

4 - Good

5 - Very Good

Tata Nano was perceived as a neutral when it comes to being called a family

car by 60% of the respondents.

The Brand TATA

7% 13%

40%

33%

7%

THE BRAND 'TATA'

1 - Very Bad

2 - Bad

3 - Neutral

4 - Good

5 - Very Good

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The Brand TATA is perceived to be good and neutral by most of the

respondents.

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SWOT ANALYSIS

STRENGTHS:

41 Patents for innovation Low- priced Stylish Environment- friendly High fuel efficiency Spacious- Internal space 21% more than Maruti 800 and External space 8%

less than Maruti 800 Variometric gear system- magnifies torque

WEAKNESSES:

Less boot space No headlight levelers Not fit for hilly terrain Poor traction control Poor engine cooling and hence over heating Small tyres Windows wind down by hand

OPPORTUNITIES:

Recession Royalty Auto finance Create employment

THREATS:

New competitors- Bajaj, Chery, Honda Siel, GM Electric car- REVA Traffic congestion Reducing parking space Strict European Safety standards Rising cost of raw materials Rise in taxes

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CONCLUSION

Tata hopes the Nano will help millions of poor people around the world — the

“Bottom of the Pyramid” in developing world marketing-speak —switch from two

wheels to four. Environmentalists, city planners and even some competitors, on the

other hand, warn that the new vehicle will clog up India’s crowded roads and add

clouds of pollution to its already filthy air.

Tata emphasized that the new car complies with India’s emissions laws and even with

Europe’s much stronger Euro 4 standards. Emissions, Tata says, are “lower than a

scooter’s today”. The company claims the car will also deliver 50 miles per gallon, or

better than 20 kilometers per liter, which would make it one of India’s most efficient

vehicles, and vastly more efficient than the average in the U.S.

After the study of various aspects I found that –

NANO IS DEFINITELY NOT FOR:

Someone looking for great performance.

Someone looking for social prestige.

Someone looking for speed.

Someone looking for long hours of drive.

BUT IT IS DEFINITELY FOR:

Someone who is looking to buy a car but cannot afford one

A student who wants to go to college in his own car.

Someone who depends on second hand car.

A house wife who can buy a car with her own savings.

Someone who depends on two-wheeler.

So TATA NANO is basically NOT a LUXURY CAR but it can fulfill the needs

of the lower and the middle class people.

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BIBLIOGRAPHY

Websites

http://tatanano.inservices.tatamotors.com/tatamotors/

http://economictimes.indiatimes.com/articleshow/2694186.cms

http://www.businessweek.com/innovate/content/feb2008/

id20080227_377233.htm

"Nanomania overwhelms Indian car market". Autocar.co.uk (2008-02-07)

http://tatananoindia.blogspot.com/

http://en.wikipedia.org/wiki/Tata_Nano

http://en.wikipedia.org/wiki/automobile industry in India

www.carazoo.com

www.siam.com

www.edmunds.com

India Today magazine

India One News

TATA Nano prospectus

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APPENDIX

Questionnaire for the primary research conducted:

1. Name

2. Age

a. 18 – 25 years

b. 26 – 40 years

c. 41 – 50 years

d. 50 +

3. Income Level per Annum

a. Less than 1,50,000

b. 1,50,000 – 2,50,000

c. 2,50,000 – 5,00,000

d. More than 5,00,000

4. Contact Number

5. Do you know about the various features of Tata Nano?

a. Yes

b. No

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6. What do you prefer from the following options?

a. Neither a two wheeler nor a four wheeler

b. A two wheeler

c. Tata Nano

d. Four wheeler other than Tata Nano

7. Rate Tata Nano on the given scale for the following attributes.

(1 – Very Bad, 2 – Bad, 3 – Neutral, 4 – Good, 5 – Very Good)

a. Prestige

b. Safety

c. Economy

d. Family Car

e. The Brand TATA

Thank you for your valuable time and responses

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