TATA Nano | Car | Fuel Economy In Automobiles

CONTEMPORARY ISSUES A report on TATA NANO -the people’s car

About Tata Group
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Mr. Ratan Tata is the chairman of the TATA company The business operations of the Tata group -communications and information technology, engineering, materials, services, energy, consumer products and chemicals. The major companies-Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Tea, Indian Hotels and Tata Communications Tata group provides IT solutions and services to customers worldwide -systems integration, hardware manufacturing and educational services.


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Tata Motors Limited is India's largest automobile company, with revenues of Rs. 32,426 crores (USD 7.2 billion) in 2006-07. It is the leader by commercial vehicles in each segment. The company is the world's fifth M&HCV manufacturer, and the world's second largest medium and heavy bus manufacturer. Annual turnover of over Rs 108 billion. The company has manufacturing plants at Jamshedpur, Pune and Lucknow, Bangalore, Chennai, Noida, Uttaranchal & Singur, & have many more manufacturing & R&D units abroad. Focusing on new technologies and innovation

An idea can change your LIFE
An idea can change your WIFE

An idea can also change OTHERS life

Mr. Ratan Tata said, “I observed families riding on two-wheeler the father driving the scooter, his young kid standing in front of him, his wife seated behind him holding a little baby. It led me to wonder for such a car which is safe & affordable to any middle class family.”

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“NANO" is often used to mean small. Tata Motors commercially launched Nano on March 23, 2009, with bookings from April 9 to April 25.The sales of the car will begin in July 2009, with a starting price of Rs 115,000, cheaper than the Maruti 800. The car is expected to boost the Indian economy, create entrepreneurialopportunities across India, as well as expand the Indian car market by 65%. Described as an eco-friendly "people's car".

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Nano received media attention due to its targeted low price. The Tata Nano is a rear-engine, fourpassenger ,city car built by Tata Motors, , It was first presented at the 9th annual Auto Expo on 10 January 2008, at Pragati Maidan in New Delhi, India. From Singur to Pantnagar (Uttakrkhand) Aimed primarily at the Indian market.


A loan of Rs. 9750 Crore at 0.1% simple rate of interest. Repayment of this loan @ 0.1% over 20 years. They got 100% exemption on electricity duty. The 1100 Crores’ Land has been given with high subsidies without any stamp duty registration and transfer charges. The payment for land would be made in eight equal annual instalment at a compound interest of 8% p.a


The low-cost car is clearly intended for the masses. For the family of four that would otherwise ride on a scooter, Its also attracts the small cars buyers like Maruti 800, bike riders etc.

Length Width Height Engine Capacity Power Fuel Injection Fuel Type Body Type Seating Capacity 3.1 metres 1.5 metres 1.6 meters All-aluminium, Rear Mounted, Rear Wheel Drive 623 cc 33 PS Multi Point Fuel Injection (MPFI) Petrol, Diesel Version will be later Sheet Metal 04 (Four) 20-22 Kmpl (City drive) Mileage Top Speed Emission Norms Safety Norms Versions 26 Kmpl (Highways) 75 K.M Euro-IV, Bharat Stage-III compliant Frontal Crash Tested One Standard and Two Deluxe


Basic Tata Nano Std priced at 1,23,000 Rupees Deluxe Tata Nano CX at 1,51,000 Rupees has air conditioning; Luxury Tata Nano LX at 1,72,000 Rupees has air conditioning, power windows and central locking

According to Tata Group’s Chairman Rata Tata, the Nano is a :  33 PSI (33 hp/24 kW) car with a  623 cc rear engine and rear wheel drive, and has a  fuel economy of 4.55 L/100 km (21.97 km/L, 51.7 mpg (US), 62 mpg (UK)) under city road conditions, and 3.85 L/100 km on highways ( 25.974 km/L, 61.1 mpg (US), 73.3 mpg (UK)).  It is the first time a two-cylinder non-opposed petrol engine will be used in a car with a single balance shaft.  Compressed engine.  Eco-friendly models and initiatives.


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The Nano's boot does not open, instead the rear seats can be folded down to access the boot space. It has a single windscreen wiper instead of the usual pair. Some exterior parts of it are glued together, rather than welded. It has no power steering. Its door opening lever was simplified. It has 3 nuts on the wheels instead of the statutory 4 nuts. It only has 1 side view mirror

1. Bosch

2. Caparo 3. Continental 4. Delphi 5. Denso Controls 6. Fag 7. Ficosa

8. Freudenburg 9. GKN 10. Itw Deltar 11. INA 12. Johnson 13. Mahle 14. Saint gobain


A German based automotive company. It supplies Gasoline injectio Starter. A Europe based company. It supplies Inner structural panels.

It supplies Rear-view mirrors, interior mirrors, manual and CVT shift system An American corporation. It supplies break systems. U.S based company. It supplies seating systems.

Europe based company. It supplies fuel level sensor, gasoline fuel sup

Issues & Controversies

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Tata's planned manufacturing unit for the car in Singur, West Bengal, where the state government of West Bengal has allocated 997 acres (4.03km²) to Tata Motors Required fertile agricultural land and the expropriation and eviction of 15,000 peasants and agricultural workers. September 2,2008 Tata Motors announced that they have suspended work at Singur. On October 2 ,2008 Tata Motors announced that they are pulling out of Singur. On Oct. 7 2008, it was announced that the Chief Minister of Gujarat, Narendra Modi had

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Idea Generation Idea Screening Business Analysis Development Test Marketing Commercialization Concept Testing

Idea Screening
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Will the customer in the target market benefit from the product? What is the size and growth forecasts of the market segment/target market? What is the current or expected competitive pressure for the product idea? What are the industry sales and market trends the product idea is based on? Is it technically feasible to manufacture the product? Will the product be profitable when manufactured and delivered to the customer at the target price?

Concept Development and Testing

Develop the marketing and engineering details  Who is the target market and who is the decision maker in the purchasing process?  What product features must the product incorporate?  What benefits will the product provide?  How will consumers react to the product?  How will the product be produced most cost effectively?  Prove feasibility through virtual computer aided rendering, and rapid

Business Analysis

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Estimate likely selling price based upon competition and customer feedback Estimate the cost of the project Estimate profitability and breakeven point

Beta Testing and Market Testing
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Produce a physical prototype or mock-up Test the product (and its packaging) in typical usage situations Conduct focus group customer interviews or introduce at trade show Make adjustments where necessary Produce an initial run of the product and sell it in a test market area to determine customer acceptance

Technical Implementation
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Resource estimation Engineering operations planning Department scheduling Supplier collaboration Logistics plan Resource plan publication Program review and monitoring Contingencies

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Launch the product Produce and place advertisements and other promotions Fill the distribution pipeline with product


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Introducing the car with an artificially low price through government subsidies and taxbreaks Forgoing profit on the car Using vertical-integration to artificially boost profits on cars at the expense of their materials industries Partially using inexpensive polymers or biodegradable plastics instead of a full metalbody Raising the price of the car

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Product Mix- product features, design etc. Branding Strategies- umbrella branding strategies small size,small price small income group, small family Pricing strategies- Penetration pricing, Low pricing policy with minimum profit margin. Promotional Activities- Publicity as “One lakh car” ,Auto expo 2008,New Delhi & Geneva, print & electronic media, Singur violation

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Living standard up gradation Increased safety 1 million cars per year Inadequate infrastructure Traffic congestion Parking problem Price hike in real estate. ARE WE REALLY PREPARED FOR IT ?


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Boom in the banking and financial sector Competitive advantage Mass Selling and production Employment Energy security issue

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Pollution Global warming Petroleum scarcity Non-biodegradable waste CAN WE AFFORD THIS DISASTER Automobile revolution Mass production Safety will be compromised R&D for low cost editions

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Low Price & stylish High fuel effeciency Brand name, First innovation 35 Patents for innovation Environmental friendly- Green House Effect Variometric Gear System- Magnifies Torque Tested successfully for crumple zones

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Fiber body, Low suspension power, Low engine capacity, Light vehicle, Not suitable fir hilly areas Less Boot space Poor engine cooling & hence over heating No headlight levelers No modern facilities- ABS, PS, AC

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Bikers can be motivated Created a Niche Market Creates Employment Auto Finance Diesel & Electric Variant Developing Low Price Engine Oil

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New Competitor- Bajaj, Honda Siel, GM etc. REVA an electric car Traffic Congestion Government may increase taxes in metros Rising cost of raw material Reducing parking space

Challenges to Tata Nano
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Political issues in Gujarat. Fuel price hikes is the most important challenge for Nano. Increase in material cost like steel and tires.

Effect on Indian Economy
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Expand the Indian car market by 65%, according to rating agency CRISIL. The low price makes the car affordable for families with incomes of Rs 1 lakh [1,00,000] per annum The increase in the market is expected to push up car sales by 20% over the previous year. “ Thus, the Indian Economy is expected to remain strong and grow in 2009


Na n


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Ro om

"Dream-dream and dream, because dream gives vision, vision gives thoughts and finally thoughts lead to the action“-India's former President Dr. A.P.J. Abdul Kalam Ratan Tata 2003, dreamt of producing a safe, affordable Car for the common man

NANO definitely helps to come true for Middle Man’s Dream It truly proved to be the cheapest car of the industry

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www.tatamotors.com www.tatanano.com www.economictimes.com Business Standard Times of India

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