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Vivek Kumar Badola



SESSION: 2008-2011

I undersigned Vivek Kumar Badola hereby declare that this report entitled
“TATA NANO One Lac Car” is a study conducted at Dehradun. The empirical
findings in this report are based on the data and information collected by myself. The
work is humbly submitted to the IMS, Dehradun as a partial fulfillment of the
Bachelors Degree

Vivek Kumar Badola

This is the specialization project on a study on Tata Nano. The objective of
this study is to gain knowledge about how Tata brought this new product i.e., Nano up
to the development stage and finally going to launch it on 23rd of March.

The project was assigned by Gaurav Pant (Project Guide).

During, the project I researched on how Tata developed Nano costing Rs 1

lakh and what will be its effects. A survey was also done for understanding consumer
buying pattern and preferences.

Thus, this study is based on Tata Nano.


I am thankful to HNB Garhwal University and IMS College and specially

BBA department who provided me with the opportunity for carrying out the study.

I would also like to acknowledge my sincere thanks to our Gaurav Pant, under
their valuable guidance, constant interest and encouragement, who have devoted her
ever-precious time from their busy schedule and helped me in completing the project.
His co-operation was not only useful for this project but will be a constant source of
inspiration for me in the future.

I express gratitude to various faculty members for there valuable guidance

which was a good learning experience in order to make my efforts successful.

Special, continual assistance while collecting the data was provided by the
respondents. I wish to acknowledge my special thanks to them for their help and
cooperation in order to complete this project.

I am also thankful to those who have helped me intellectually in preparation of

this project directly or indirectly.

I am deeply indebted to the various sources of information from relevant sites

from internet and books which helped me a lot in my study and helped me to learn a



This is to certify that Mr Vivek Kumar Badola, Student of

BBA–V, has successfully completed her Project and has
submitted his report. This Report is found to be satisfactory/
Good/ Very Good/ Excellent.

Date:___________ Mr.Gaurav Pant










“Dream-dream and dream, because dream gives vision, vision gives thoughts and
finally thoughts lead to the action". Each letter of these motivational words said by
India's former President Dr. A.P.J. Abdul Kalam goes exactly with Mr. Ratan Tata,
Chairman of Tata group, who in the year 2003, dreamt of producing a safe, affordable
Car for the common man. Finally after the wait of five years, crossing all financial
and technological barriers, Ratan Tata kept his promise and unveiled Tata 'Nano' on
10th January 2007, at the 9th Auto Expo 2008 in New Delhi. Tata Nano, cool &
smart, launched by Tata Motors is world's cheapest Car with a price tag of $ 2500
The Making Of Tata Nano

Ratan Tata rolls the window down and talks about the vision and conviction, the
innovation and improvisation, and the leap of faith that went into creating the People's

The launch of the People's Car by Tata Motors is a defining moment in the history of
India's automotive industry. For Tata Motors, the car - christened the Nano, because it
is a small car with high technology - is the next big step in a journey that began with
the Indica. For the Tata Group, it is the realization of a pioneering vision to create a
breakthrough product globally that rewrites the rules of the small-car business.

What does this path-breaking Endeavour really mean for the Chairman of the Tata
Group, in many ways the inspiration behind the car? That's what Christabelle Noronha
set out to discover when she met Mr. Tata at Pune, as 2007, a momentous year for the
Group, was drawing to a close.
There has always been some sort of unconscious urge to do something for the people
of India and transport has been an area of interest. As urbanization gathers pace,
personal transport has become a big issue, especially since mass transport is often not
available or is of poor quality. Two-wheelers - with the father driving, the elder child
standing in front and the wife behind holding a baby - are very much the norm in this
country. In that form two-wheelers are a relatively unsafe mode of transporting a
family. The two-wheeler image is what got me thinking that we needed to create a
safer form of transport. My first doodle was to rebuild cars around the scooter, so that
those using them could be safer if it fell. Could there be a four-wheel vehicle made of
scooter parts? I got in touch with an industry association and suggested that we join
forces and produce what, at that point, I called an Asian car: large volumes, many
nations involved, maybe with different countries producing different sets of parts¦
nobody took the idea seriously, nobody responded.
This was similar to what happened when we wanted to get going on the Indica. I had
proposed a partnership with an industry body to create an Indian car, designed,
developed and produced in India, something that could be conceptualized and
executed as an Indian enterprise. Everybody scoffed at the concept. I remember
people saying, "Why doesn't Mr. Tata produce a car that works before he talks about
an Indian car." My confidence got a boost when we finally succeeded with the Indica.
Willy-nilly, we decided to look at [the low-cost car] project within Tata Motors.

It was never meant to be a Rs1-lakh car; that happened by circumstance. I was

interviewed by the [British newspaper] Financial Times at the Geneva Motor Show
and I talked about this future product as a low-cost car. I was asked how much it
would cost and I said about Rs1 lakh. The next day the Financial Times had a
headline to the effect that the Tatas are to produce a Rs100,000 car. My immediate
reaction was to issue a rebuttal, to clarify that that was not exactly what I had said.
Then I thought, I did say it would be around that figure, so why don't we just take that
as a target. When I came back our people were aghast, but we had our goal.

Today, on the eve of the unveiling of the car, we are close to the target in terms of
costs. We are not there as yet, but by the time we go into production we will be. This
project has proven to everyone that if you really set yourself to doing something, you
actually can do it.

Two-three important events have influenced the development of the car; inflation, for
one. The cost statement was made three-four years back but we are holding on to that
price barrier. This will definitely diminish our margins. The price of steel, in
particular, has gone up during the intervening period.
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 realized 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.

Why India Must Think Small to Stay Big

Ratan Tata looks positively relaxed as he walks into the lounge of Mumbai's private
airport for this meeting. He has been awake since 3am and has just flown in from the
south. There are hardly any signs of fatigue as he poses for pictures before the
interview is scheduled to begin.

As the coffee comes in, Tata sends word to remind his driver to have his meal as he is
going to be late. The first thing that strikes me about this man is his humility and
disarming attitude. Remember, he is India's most powerful corporate chieftain who is
equally well known across the world.

The topic now shifts to the all important Rs 1 lakh car and the rationale of moving
down the value chain. Is this the best route and does it make sense to ignore the more
profitable premium category?

If you look at India, you have about one billion people growing at about 17-18 million
a year. You have a middle class or a consuming class of about 250 million, which is
increasing from the bottom up each year. And you have a higher percentage at the top
of the pyramid, which has been the buying public hitherto for most Indian products.

There is also a segment of the market that is brand conscious, prestige-conscious and
would often even prefer to buy foreign brands to Indian brands. They know what is
happening elsewhere in the world and would prefer to put their money on a foreign
brand rather than an Indian brand, he explains.

In the automobile sector, other than Tata Motors and Mahindra & Mahindra, the
industry here largely comprises of foreign companies. As Tata says, while it is an
issue of great satisfaction that these two Indian companies have been able to get
meaningful market shares. in this arena, only the top part of the pyramid is being

Hence, the million-plus cars being sold are going mainly to that segment and
somewhat to the top end of this large consuming area. I had projected that we would
be a million cars in 2000 but that did not happen because we were in an economic

So we can say that in 2007, our market would be 1.7 million or two million units. But
is that really the market potential of the country? After all, it is one where the people
buy six million two and three wheelers, which is six times the passenger car market,
he says.

As everyone is aware, this is obviously because of the price disparity. The point
therefore, he adds, is to be able to address the lower market somehow with a
reasonable acceptable product. India, in any case is a country where people have a
tremendous urge to own but often it is beyond their reach.

Why do you see such a great sale of clothing on a foot path? Why is Fashion Street in
Mumbai so popular? The guy in the factory wears clothes that at least look like what
the higher end wear. The fact that they come from Tibet or Nepal is not an issue.

Why is it that the same footpath sources are able to sell tennis or running shoes even if
they are fraudulently branded Nike or Reebok? The person is aware of those brands,
wants them but cannot afford to pay for them. So, he settles for these, remarks Tata.
What is clear is that if branded product manufacturers can address that market, it is a
huge opportunity. The bigger question is the ability to address it and this where Tata
believes it is possible.

If we are looking at a small car, we should not do this at the same proportion as cars
of today are being looked at. We should be bold and take some risks so that we can
have a much larger scale of consumption of that product in India or elsewhere. We
need to take a gamble on that and that is my take on addressing that wider market, he

Tata believes that this is something that needs to be done because otherwise the
Chinese will address that market in India with a suitable product. All that they will do
is to squeeze the Indian manufacturers into a position at the higher end of the market,
denying him access to the larger market.

We can certainly increase numbers by addressing the lower end on lesser margins but
still be profitable. The Ace has been an example at the commercial vehicle end. It is
the same thing where you are getting much more for that vehicle.

You must not be overpricing the value for what you are providing. If you can answer
that, then it makes sense. Then if you take it further and put power steering, provide
air conditioning and so on, it becomes an attractive product that others cannot
compete with, he says.

According to Tata, the Rs 1-lakh car would probably be out towards the end of 2007-
08. The way it is being planned now, it is going to be a rear engine car, essentially
steel, with some plastic parts. It will be a five seater with four doors. No decision has
been taken as yet on the engine capacity.

The car will have a continuous variable transmission. At that low cost, it will not have
a clutch and will be easier to drive without any gears. It will be a product that will be
simpler to deal with, easier for women to drive and something that we hope will add
value to the customer, he says.
Tata Motors will produce the bulk of the production in its plant. This is where the
entire concept becomes interesting. We What we also wish to do, which is still not
fully clear and a concept at this point of time, is to create any opportunity for
entrepreneurs, he says.

Low cost units in different parts of the country will assemble the car where Tata
Motors will take the responsibility for training on site and other aspects related to
quality etc.

We will give young entrepreneurs the opportunity to establish enterprises in

distributed areas to produce this for us. We will produce all the high volume parts and
send them as kits to these assembly units. This will also enable us to address some
international markets in Indonesia, Africa etc on the same kind of basis.

Tata’s people’s car:

Tata’s one lakh car is the most expected car in recent times not only in india, the
whole world is anticipating for the car. “The one-lakh car is a case study which the
whole world is watching. If successful, the car can spark demand in a new segment all
over the world” reports JD power an automotive rating and research firm. That’s why
every news and rumors about the low cost car is getting covered in almost every
magazines, every newspapers and every web portals even the mighty Business week
and BBC is reporting about the developments of the car. The most expected car has
also become the most controversial car in Indian history. Whether its the singur
controversy or the competitors criticism in one or many ways the one lakh car is
making news.
While the Chevrolet Aveo, currently the cheapest car in the US, cost around $ 10,350
while Europe’s low cost contender the Dacia Logan costs around 6000 euros. Coming
to India while most manufacturers are finding difficult even to make a 100cc bike for
Rs40000 Tata is building a car for 1 lakh ($2500) and Tata has to break its own
achievements and has to set new levels of benchmarks in design, production,
assembly, logistics and wherever they can to produce a car at such a price.

Can the Tata’s meet the expectations? Will the one lakh car convey the india’s
potential to the world? Will Tata stick to its price tag? Will it make sense for Tata to
have a car when other players are moving to premium segments? Will the more
demanding customers will like the low cost machine? In this preview we will find
answer for all these questions also we will know how tata is cutting the cost in all
domains to adhere to its price tag.

Name for the Commuters car:

The most watched car in the Indian car space — the Rs 1-lakh ($2500) offering from
the Tata Motors stables — is still unnamed, but company sources here believe that
`Jeh’ is emerging as the `most favoured name’. “It has always been our Chairman Mr
Ratan Tata’s dream to name one of the cars after J.R.D. Tata,”said a Tata official.

What’s the 1 lakh car all about?

Tata says the proposed Rs 1-lakh car would be a vehicle that “will seat four to five
people and have a rear engine. It will not be a scooter, three-wheeler or an auto-
rickshaw made into a car.” “It will also not be a stripped down car. It will be an
inexpensive car,” he said, but added that it would obviously not have the finish or the
high speed or the power of a larger car. It would be a rear engine, 4-5 seat, four-door
car with about 30 hp (horsepower) engine. Though it is tough to preview a car which
is guarded highly by its manufacturer, we will unveil as much we can in this post. The
price we have announced is the price we are launching the car at. Tata never said the
price will never rise. But he can’t say if it did, when. When the Maruti van was first
launched I bought one of those for Rs 50,000.Of course now that product is not
available at that price. Our Endeavour with the Nano will be to hold our price as much
as possible, All rights reserved.
 Tata Nano Standard
 Tata Nano Diesel Standard
 Tata Nano Deluxe
 Tata Nano Diesel Luxury
 Tata Nano Luxury
 Tata Nano Diesel Deluxe

Name: Nano
Model: Standard
Car Body Type: Hatchback
Segment: A Segment
Top Speed: 105
0 to 60: 12.60
0 to 100: 0.00
Fuel Consumption:
26.00 kmpl.
Fuel Consumption:
22.00 kmpl.

Displacement: 624cc, 3 cylinder, rear engine
Engine Type: Petrol
Maximum Power: 33bhp@5500rpm
Maximum Torque: 48Nm@2500rpm

Length: 3090 mm
Width: 1485 mm
Height: 1570 mm
Seating Capacity: 4
Tyre Size: R12
Suspension: McPherson strut & Independent coil spring
Steering: Power
Brakes: Front Disk, Rear Drum
Gears: 4 Manual
Ground Clearance: 180.00 mm
Kerb Weight: 580.00 kgs.
Fuel Tank: 30.00


Performance Comfort Find More Like This

Better Fuel Efficiency With Remote Central Similar Body Type
Better Top Speed Locking More Cars From Same
Safety With Electric Seat Segment
Vehicles with ABS Adjustment Body Type and Looks
Rear Defogger With Power Windows Sedan
Engine Type With Power Steering Hatchback
Petrol Engine Vehicles With Climate Control Coupe
Diesel Engine Vehicles With Alloys Roadster
With Leather Seats Estate
With Remote Boot and
Remote Fuel Filler
Photos Photos Interior Photos
Tata Nano Luxury Tata Nano Basic Tata Nano
Tata Motors to produce one lakh car in Thailand

Yesterday, there were media reports indicating Tata Motors would unveil a high-end
variant of people’s car or 1 lakh car (jeh) at the upcoming Geneva Motor show. It is
very obvious that Tata Motors would launch the one lakh car across the globe and will
customise it depending on the market demand. For South East Asian Nation, it’s
almost sure that Tata Motors will produce the one lakh car in Thailand plant. It recent
years, Tata motors is very bullish on Thailand. Tata Motors is building an assembly
plant in alliance with Thonburi Automotive to sell the Sprint pickup in Thailand from
March 2008. Tata Motors has also submitted a request to Business of Foreign Trade in
Thailand to set up an assembly plant for eco cars with a capacity of 100,000 units at
an investment of over $250 million (1000 crores) in Thailand. Connecting the dots,
we come to know that Tata Motors will produce an environment friendly variant of
one lakh car in Thailand. CNG and LPG is likely to be the option. In addition, Tata
will produce a much powerful (engine with a capacity of 1000cc) one lakh car in
Thailand to cater to the needs of the region which are currently dominated by
Japanese majors like Honda and Toyota. Safety features like airbags and ABS will be
added to the one lakh car to comply the safety standards

Tata plans $250m eco-car plant in Thailand

Few weeks back we reported you on Global auto makers plan to make Thailand an
eco-car hub under the heading Is Thailand edging out India?

Tata Motors which will soon roll out the new generation sprint through its alliance
with Thailand based Thonburi. Tata Motors will produce 35,000 pickups from 2008 in
Thailand. Now, it plans to make 1lakh environment friendly cars in Thailand. Global
Auto maker are making queue in Thailand to avail the tax breaks offered by the
Government of Thailand to companies that produce hybrid vehicles. For more details
read click the link specified above. Tata Motors has submitted an application to build
a new eco-car assembly and parts plant, with annual output capacity of 1,00,000 to
Thailand’s Board of investment. Tata Motors will invest around $250 million
(1000crores) for the Thailand plant. Tata has already invested $43 million for the
pick-up plant.
Ace pick-up:
Tata Motors may also produce a pick-up based on its small truck- Ace for the
Thailand market. It has already launched the passenger version of Ace, called Magic,
in the domestic market. Tata’s Magic could be re-engineered to a pickup and made
available under different eco-friendly fuel forms like compressed natural gas (CNG)
and liquefied petroleum gas (LPG) to meet the emission norms.

Indian Manufacturers in foreign soils

When many of us prefer Honda’s and Suzuki’s over Tata and Bajaj, we fail to notice
Indian manufacturers are making great strides in many parts of the world. Tata,
Mahindra & Mahindra, Bajaj and TVS begin to attract customers across the world not
just in under-developed countries but also in developing countries and developed
countries. Unlike Chinese manufacturers, an Indian manufacturer does not make any
copycats and they are not facing any litigation. Apart from the trucks where it’s a
world leader, Tata’s passenger car division is making its own mark in world
automobile market. Tata sold its indica in Europe till 2005, it sells indica’s, indigo’s,
TL sprint, sumo’s and safari’s in most parts of Africa and south America. Tata plans
to make a comeback in Europe and it is building a assembly plant in Thailand. Tata
motors also plans to debut in Russia. Mahindra has joint ventures to sell its vehicles in
South Africa and Europe, and a local distributor in Malaysia. It has manufacturing
facilities in Uruguay, and will soon set up plants in Egypt and Russia. Soon it plans to
enter the toughest American market. Bajaj Auto which already has a significant
presence in Colombia and most of the Asian and African countries such as
Srilanka,malayasia, bangladesh,guatemala, Indonesia and south Africa is planning to
roll out pulsars in iran. Bajaj auto is one of the largest exporters of three wheelers.
You can find Bajaj’s three wheeler even in Europe and Unites States of America.
Bajaj Auto has said in the past that it would like exports to touch the 10lakh mark by
2010 and be a significant part of the overall revenue. Today, exports are close to
percent (Rs1700crores) of the company’s total revenue. TVS motors have built a plant
in Indonesia and has already rolled out a step-thru in that market. TVS plans to use the
Indonesia plant as its manufacturing hub for exports to Malaysia, Vietnam, Thailand,
Myanmar and Cambodia. Ok let’s stop the excitation! will Tata and Mahindra be the
next Toyota or Honda, are Indian manufacturers are really making waves in western
markets or is it just media hype? do they have potential to match the mighty Ford’s,
Honda’s and Yamaha’s. Hereafter, we will try to cover all the movements of Indian
manufacturers in foreign soil!


Tata Motors is the world's fifth largest medium and heavy truck manufacturer and the
second largest heavy bus manufacturer. Mr. Tata's 'dream project', the Rs one-lakh car
has generated immense interest in the Indian auto market, where Tata's current lowest-
priced car is Indica with a tag of Rs 3.3 lakh. The one lakh rupee car is going to be a
real car with the basic features.

Nano is in every way a car, with an engine, a suspension, and a steering system
designed for its size. The most watched car in the Indian car space - the Rs 1-lakh
offering from the Tata Motors stables - is going to be launched in March in 3 variants.
When launched, the car will be available in both standard and deluxe/luxury versions.

All versions will offer a wide range of body colours, and other accessories so that the
car can be customised to an individual’s preferences. It is aimed to rank between high
end motor cycles and the compact car segment. Instead of researching on low cost
components by themselves, Tata has delegated the task to various vendors.

The fuel-injection system is being developed by MICO while Brakes India and Bosch
Chassis Systems will be supplying low cost braking system. Around 55 prototypes
have been tested on Indian roads under varied conditions.

The name 'Nano' was chosen as it denotes high technology and small size. It was the
most eagerly waited car. State Bank of India (SBI) has been appointed exclusive
booking agent for the Tata Nano.

People world over were keen to see what Tata Motors' People's Car looked like, and
know more about it. The Tata Motors website saw nearly 7.9 million hits on January
10 (the day the Nano was unveiled), while the Tata Nano website saw 4 million hits in
30 hours, making these sites among the busiest in the world.

Nano has a rear-wheel drive, all-aluminum, two-cylinder, 623 cc, 33 PS, multi point
fuel injection petrol engine. This is the first time that a two-cylinder gasoline

The lean design strategy has helped minimize weight, which helps maximize
performance per unit of energy consumed and delivers high fuel efficiency.
Performance is controlled by a specially designed electronic engine management

Fuel Efficiency

As in international markets, Nano will have back mounted engine, pushing the
luggage space to the front. Making the engine closer to the fuel tank has another
advantage of increased fuel efficiency.

Rear mounted engine also help in reducing the power loss during transmission. Nano
has front disk and rear drum brakes. The company claims mileage of 22 kmpl in city
and 26 kmpl on highway.

Safety & Comfort

By adhering to the fact that less weight requires less power, Nano is made of light
weighing steel. This has made the Tata’s come up with a cheap alternative with out
compromising on safety and performance.

With an all sheet-metal body, it has a strong passenger compartment, with safety
features such as crumple zones, intrusion-resistant doors, seat belts, strong seats and
anchorages, and the rear tailgate glass bonded to the body.

Tubeless tyres further enhance safety. It exceeds current regulatory requirements with
a strong passenger compartment, crumple zones, intrusion resistant doors, seat belts,
strong seats and anchorage.
Length 3.1 meters
Width 1.5 meters
Height 1.6 meters
All-aluminum, Rear Mounted,
Engine 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)
20-22 Kmpl (City drive)
Mileage 26 Kmpl (Highways)
Top Speed 75 K.M
Euro-IV, Bharat Stage-III
Emission Norms compliant
Safety Norms Frontal Crash Tested
Versions One Standard and Two Deluxe

Engine and Transmission:

It is almost sure that Tata’s no frills car will be an rear engine car –to save the
transmission cost. Tata Motors have tested an 550-650cc engine but felt it is not
sufficient to propel a four seated and they decided to step up the engine. Robert Bosch
the international Auto Electronics major has acknowledged that’ its latest success is
an order to supply alternators, brakes, and gasoline and diesel management systems
for the one lakh car from Tata’. So a diesel and petrol unit is sure for the one lakh car.
It is believed that finally tata settled for a 660cc petrol unit and 700cc diesel unit to
power the one lakh car.

For the 660cc petrol unit Bosch has designed a special fuel injection system called
“value moronic” - the cost of the system is roughly half of a full scale system and it is
said to be more efficient. For the 700cc diesel will be a CRDi unit (it’s DICOR for
Tata) too Bosch has developed a special injection system for this world’s first twin
cylinder CRDi engine. Earlier in 1998 when Ratan Tata unveiled a concept car named
‘zing’ he initiated the idea of producing the 1 lakh car using scooter parts. Yes, Tata
opted a basic, automatic or variomatic transmission, instead of a manual transmission
set up. Not only it will help the tata in cutting the cost as Tata targets millions of two-
wheeler users for its 1 lakh car it will be easy for the tata to lure them. In the
combination of smart petrol unit or a DICOR unit with automatic transmission the one
lakh car will be dearer not only while you’re buying it but also it will be softer on
your monthly fuel bill. Overdrive reported petrol version of the one lakh car registered
mileage/ fuel efficiency in the region of 26kpl (65mpg) in the internal Tata tests and
but Tata is gunning for 30kpl!(70mpg) enough isn’t it? If not, Tata – Bosch DICOR
unit may satisfy our thirst. On the performance side the petrol unit is believed to
produce 33bhp with a top speed of 120kph(80mph)

Few disadvantages in a rear engine car:

* Uneven weight distribution and hence poor traction control

* Poor cornering and poor handling

* Poor engine cooling and hence more chance for engine overheating

* Almost no boot space and cramped space for rear passengers

Design and features:

Nano is designed with a family in mind, has a roomy passenger compartment with
generous leg space and head room. It can comfortably seat four persons. Four doors
with high seating position make ingress and egress easy.

Yet with a length of 3.1 meters, width of 1.5 meters and height of 1.6 meters, with
adequate ground clearance, it can effortlessly manoeuvre on busy roads in cities as
well as in rural areas. Its mono-volume design, with wheels at the corners and the
power train at the rear, enables it to uniquely combine both space and
maneuverability, which will set a new benchmark among small cars.

Tata’s zing and indiva concept cars exhibited at 1998 and 2002 auto expo would be
base for the proposed one lakh car. Apart from the concept cars, the one lakh car is
sure to have few signs popular rear engined cars such as Volkswagen beetle, Fiat
model 500 and Porsche cars. Tata has outsourced the design to Italy’s Institute of
Development in Automotive Engineering (IDEA) which designed most Tata;s cars
including indica. The one lakh car probably will not be designed to win any beauty
contests but at the same time it will not be a ugly duckling either. As evident from the
indiva, tata’s small car will embrace not so contemporary tall boy look similar to
Maruti Suzuki’s WagonR. Under the front hood the one lakh car will have a small
storage space, “like an overhead bin” on an airplane.

As bonnet is used for the storage space, headlamps will not be a wraparound, it may
be quadrilateral in shape and the headlamps will sit on the smaller bonnet. As the one
lakh car is a rear engine one, i believe drivers will have more fun with this car,
starting from steep rake to the larger front windshield is truly what every driver loves
to have. For the one lakh car there will not be a distinctive grille but because of the
round bumper, Tata’s will carry its familiar ’smiley’ front look to the one lakh car as
well. Tata’s small car will make use of a single wiper instead of two, not only for
giving the car a cleaner look also for cutting the cost of windshield wipers for the
people’s Car in half. In the sides as Tata will source smaller tyros from its cargo
carrier ace for the one lakh car and because of this Tata will not spruce up the fenders.
Not so full wheels and black door handles will feature in people’s car. Identical rear
view mirrors will be used on either side to save cost. In the rear one lakh car will be
more up market since the car will have pillar mounted tail lamps similar to its sibling

Inside, the one lakh car will feature all the basic amenities, instrument console would
have a speedometer, an odometer and fuel gauge. You have to cut costs on everything
—seats, materials, components—the whole package,” says Tata Group Chairman
Ratan N. Tata. These are the words which are going to be reflected in upholsteries and
door trims.

Some Innovation made the Tata Nano possible, from design to product

Initially I had conceived a car made by engineering plastics and new materials, and
using new technology like aerospace adhesives instead of welding. However, plastics
didn't lend themselves to the volumes we wanted because of the curing time required.
Volumes mean the world in this context: if we produce this car and if it is for the
wider base of the pyramid, we can't settle for small numbers because then the purpose
is defeated.

When we were planning facilities for the car and working out a business plan, the
business plan shown to me was looking at a figure of 200,000. I said 200,000 cars is
crazy. If we can do this we should be looking at a million cars a year, and if we can't
do a million then we shouldn't be doing this kind of car at all.

But such a figure (a million cars) has never been achieved in the country before. If it
had to be done the conventional way, it would have meant investing many billions of
dollars. So we looked at a new kind of distributed manufacturing, creating a low-cost,
low break-even point manufacturing unit that we design and give to entrepreneurs
who might like to establish a manufacturing facility. We looked at different ways of
servicing the product, at the customer's location, and through a concept adopted from
the insurance industry, wherein self-employed people are trained and certified by us.
And we went back to innovation in design and scrupulously took, as much as we
could, cost out of the product.

We did things like make similar handles and mechanisms for the left- and right-side
doors; we developed our own small engine which could sit under the rear seat,
enabling us to craft a smaller overall package; we looked at a new type of seats; and
we worked at cutting costs everywhere. We have put our instrument cluster in the
middle, not in front of the driver. This means the same dashboard will work for a left-
hand-drive vehicle. There are a lot of such innovations that are low-cost and future-

Equally important to the cost structure was the incentive we could get from having our
manufacturing facility at a particular place. The benefits on this count will be passed
on to the customer.

Our move to West Bengal was a leap of faith and a sign of our confidence in the
leadership in the state. We were breaking new ground, not only on the product front
but also in helping industrialize a previously ignored part of India. But we did not start
out getting the incentives that other states were offering. I remember telling the chief
minister [Buddhadeb Bhattacharjee], "Sir, much as we have tried, it makes no sense
for us to come to West Bengal. We cannot meet the cost requirements we have
without incentives." It was then that we negotiated a set of incentives that, long-term,
work out to be the same as we may have had if we set up in some other place.

Other than emission norms and safety standards, what are some of the other
challenges, physical and psychological, that Tata Motors had to overcome to make
this car happen?
There was the usual dilemma of what is basic and what is nice to have. A basic car
may not have all the niceties its fancier cousins sport, and when you're looking at
saving money on every single bit of the car — even parts that cost as little as Rs20
— you keep facing these dilemmas. Hundreds of such dilemmas have risen.

However, we were always conscious that there should be no quality stigma attached to
the buying of this product. One thing we were clear about: this was never going to be
a half-car. Nobody wants a car that is less than everybody else's car. Our car may have
a small engine and certain limitations in terms of being basic, but that does not make
it inferior. Also, we have a higher version of the car - with air conditioning, leather
seats, etc - that we will be displaying at the auto show in Delhi. We hope people will
look at that, too. Down the line, as we widen our range, we will have dressed-up
versions with higher-powered engines, diesel engines, automatics and the like. We
have a whole bunch of innovations coming along on this platform. What we now have
is a car that is truly low-cost which has, approximately, the same performance as a
Maruti 800 in terms of acceleration, top speed, etc.
Some myths about the one lakh car:

Though too early to call some news about the 1 lakh car as myth, from Tata words we
can atleast flush some rumors about it. Some scoops on car’s features includes -
Curtains replacing glass windows, removable bolt-on seats instead of the regular ones,
roof will be an optional add-on, and plastic body panels instead of the regular metal
panels. Yes, Tata had talks with General Electric for using its re-engineered plastics
for its low cost car and Tata may make use of modern adhesives instead of welding to
cut down cost, but still there is no definite direction in this issue but certainly there
will be no curtains. The one lakh car will be a complete car with definite roof and
glass windows
Reactions about 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.”
Said 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
Thomas Kuehl, Board Member, Skoda
Auto India.

• The low-cost car is clearly intended for the masses. For the family of four that
would otherwise ride on a scooter, precariously balancing a tiny tot on the
front and a baby on the wife’s lap. For the first-time car buyer in India - a huge
market despite the increasing number of cars in the urban and semi-urban
• Its Also attract the small cars buyers like maruti 800.

What makes Tata Nano so cheap !

• The Tata Nano uses plastics and adhesives rather than welding.
• introducing the car with an artificially low price through govt-subsidies and
tax-breaks, or
• using vertical-integration, or
• Partially using inexpensive polymers or biodegradable plastics instead of a full
• It has no AC, no power steering, no power windows, no power bells and
Think Big With The Small Car: Ratan Tata

Ever since the Nano debuted last week, Tata Motors chairman Ratan Tata has faced
all manner of questions. From environmental (congestion/ pollution/emission) issues
to the problems at the company's under construction plant in Singur, West Bengal.
Normally reticent, he has painstakingly answered all of them. Here are some excerpts
from some of the non-spec specific questions that he had to field at the Auto Expo.

The Nano project was delayed because of the political agitation and later other issues.
Will Tata Motors be able to wrap things up as per schedule? And will the car itself
undergo any more evolution?

There is always last minute engineering that gets done. The main issue is that we have
built the plant. It was flooded earlier last year but thankfully before the machines and
equipment were installed. The water receded and construction is now on in full swing
both from our side as well as the vendors.

The problem in Singur was not of our making, It was unfortunate. I hope we can
improve the quality of life in the highly district as a good corporate citizen should. We
have already started to do that and I hope the plant will attract more industries and
create more job opportunities for the local populace.

A small car is a SMALL car. If one is looking for a limousine this is not the car to
buy. If one is looking for a three-box sedan, this is not the car to buy.
Ratan Tata has not made a claim to be the most eco-friendly in the world. They are in
compliance with emission norms in India and this current engine meets BS3 and is
capable to being scaled up to Euro 4 as well. There is a cost attached to being a totally
green car. At the end of the day, all the things you ask for may not be there in this
vehicle because we had a cost target. And that would include some of the green stuff
as well.

They are a socially responsible company but they are not a philanthropic trust. They
will make profits. As for margins there would be several up trim versions and we will
have our margins spread over those versions.
There has been widespread apprehension that this car would create congestion
because of its sheer numbers.

All the question of congestion implies that we will seek the global market with
millions of these vehicles. They don’t have the resources to do that. But we are
country of a billion people. Most Indians are denied connectivity and this is a way.

India desperately needs a mass transport system and better infrastructure. But those
are issues that they don’t deal with. They would be concerned if vehicle created
absolute chaos all over India. If you faced chaos today it did not include these clearly there are other issues involved.

This car is not a targeted at a particular segment of consumers. But having said that
they hope it will change the manner in which one travels in semi urban and rural

Everybody has a desire of stepping aside, of wanting to do what one always wanted to
do, to change gears. I have some responsibilities which I have to fulfill before I do

They don’t think anyone should have sleepless nights. This was achieved by a bunch
of young engineers. And if we could do it, it can be done by anyone, probably better.
The largest element of cost in a car is material cost. India is not the cheapest on that
count due to the tariff structure. But labor is inexpensive and productive. And
engineering inputs are very viable.

Everybody seems to imply that if you are at the low end of the market, how you can
look at high-end cars. But no one asks Unilever for instance how they can make and
sell cheap soaps in India or Africa and also expensive cosmetics elsewhere in the
developed world.

• Overview of Indian Economy

• Industrial Profile
• Profile of Indian Automobile Industry
• Tata Motors

(1) Overview of Indian Economy

• The Indian economy continued to register impressive GDP growth, although

the rate of growth declined marginally over the previous year, reflecting
inflationary trends driven by the increase in the cost of energy and raw materials.
The level of industrial activity has also begun to decline as a result of fiscal
constraints imposed on money supply and the raising of interest rates .
• Investment flows into India increased by 20% to a record level of about Rs.
120,000 Crores.
• The Indian automotive sector grew by 10% overall during the year with
substantial growth in the Light Commercial Vehicles sector and new passenger car
introductions. In the country 499,978 new commercial vehicles were sold during
the year and passenger car sales grew to 1.53 million vehicles this year.

(2)Industrial Profile

Table 7.1 annual growth rate of Industrial Production in major sectors of

( Based on the index of Industrial Production
Base: 1993-1994=100
(Per Cent)
Period Manufacturing Manufacturing Electricity Overall
& Quarrying
Weights 10.47 79.36 10.17 100.0
1995-96 9.7 14.3 8.1 13.00
1996-97 -1.9 7.3 4.0 6.1
1997-98 6.9 6.7 6.6 4.7
1998-99 -0.8 4.4 6.5 4.1
1999-00 1.0 7.1 7.3 6.7
2000-01 2.8 5.3 4.0 5.0
2001-02 1.2 2.9 3.1 2.7
2002-03 5.8 6.0 3.2 5.7
2003-04 5.2 7.4 5.1 7.0
2004-05 4.4 9.2 5.2 8.4
2005-06 1.0 9.1 5.2 8.2
2006-07 3.8 11.5 7.3 10.6
# (April - November)
Source: Central situational Organization.
(3)Automobile Industry

 The liberalization policy and various tax reliefs by the Govt. of India in recent
years has made remarkable impacts on Indian Automobile Industry. Indian
auto industry, which is currently growing at the pace of around 18 % per
annum, has become a hot destination for global auto players like Volvo,
General Motors and Ford.
 In India there are 100 people per vehicle, while this figure is 82 in China. It is
expected that Indian automobile industry will achieve mass motorization status
by 2014.
 The passenger vehicle industry also witnessed a slowdown but managed to
grow by 11.1% by increasing discounts on mature products, launching new
models and due to reduction in excise duty announced by the government in
Budget during February’08.
 Vehicle exports also grew, albeit at a slightly lower rate of 11.9% as compared
to 14.8% witnessed in the previous year
 The domestic commercial vehicle industry grew by 6.9% as compared to over
33% growth achieved in the last fiscal
Table 7.2 Company.
: Automobile Production
Alfa Citroen Hummer (Numbers
in 000) Maserati Porsche Tara
Category 2000- 2001- ni2002- 2003- 2004- 2005- 2006-07
01 02 03 04 05 06 till
Aston Ferrari Hyundai Lexus Mercedes Premier Tata
Martin car
Passenger 513 564 609 842 961 1,046 594
Audi Fiat ICML Lorinser Mercedes Proton Toyota
Multi-utility 128 106 112 146 249 263 144
Bajaj Force Infiniti Lotus Mini Rolls Royce Volkswage
Commercial 157 163 204 275 350 391 237
Motors n
Bentley Ford Isuzu Mahindra Mitsubishi SAN Volvo
Two Wheelers 3,759 4,271 5,076 5,625 6,527 7,600 4,155
Three Wheelers 203 213 277 341 374 434 264
BMW GM-Wuling Jeep Mahindra Nissan Skoda
Total 4,759 5,316 6,280 7,229 8,461 9,735 5,394
Cadillacin percent
Hindustan - 2.00Maybach
11.70 18.60Auto15.12
Maini Oreva 16.80 Smart
14.97 18.04
Source: Ministry
Motorsof heavy industries & Public Enterprise (Department of Hheavy Industry)
Chevrolet Honda Land Maruti Peugeot Spyker

 Automobile Export

Table 7.3: Automobile Export

category 2000- 2001- 2002- 2003- 2004- 20005- 2006-
01 02 03 04 05 06 07
Passenger 23 50 71 126 161 170 98
Multi-utility 4 3 1 3 6 5 3
Commercial 14 12 12 17 30 41 23
Two 111 104 180 265 367 513 323
Three 16 15 43 68 67 77 62
Total 168 185 307 479 620 806 519

Growth in 20.24 9.74 65.35 55.98 31.25 28.03 27.43


About Small car industries and Tata Motors

An ancient time after inventing wheel of potter, It took about 750 years to make
wheels of cart. One unknown inventor used the wheel of potter to make wheel of cart,
this invention initiated the new era of Transportation of goods and men. Then new era
has been starting by making usage of two wheeler and four- wheeler vehicles by the
human being.

Exactly 100 years ago, in the year 1907, Henry Ford introduced Car in America
(U.S.A.) which triggered “Automobile or (Transportation) Revolution” . In India,
exactly 50 years ago in the year 1957 first Domestic Ambassador car was introduced
by Hindustan Motors.

After that, in our country there are number of companies who make two-wheeler,
three-wheeler and four-wheeler vehicles. There are number of company who makes
small cars such as Hundai, Tata Motors, Maruti Udhyog, General motors, etc. are
putting up massive capacities that will make India the small car hub of the world.
India is the world’s largest country of producing small cars. In India, in the year 1983
“Maruti-800” is the first domestic small car introduced in the market.
The Cheapest Cars of the World

Serial No. Model Name of Company Price (US$) Country

01 Nano Tata Motors 2500 India
02 QQ-3 Cherry Automobile 5000 China
03 Maruti-800 Suzuki Maruti 5200 India
04 Merry-Star Zeeli Automobile 5500 China
05 S-R-V Zeeli (Mini S.U.V.) 5780 China

The market share of small ca is increasing day by day. In the year 2004-2005 the
share of small car was 57.71% and 10,61,572 small cars were sold, and in the year
2007-2008 it was 60.63% and 17,50,000 small cars were sold. Now it is expected that
Small car market will grow at 12 to 15% this year and sales volume of over 1.5
million small cars.

Small car Market Share of different manufacturing company

Manufacturer Location Capacity Investment Completion

(Units/P.A) (In Crore) Time
Maruti Suzuki Gorgoan (Haryana) 300000 9000 In 2010
Hyundai Irungattukottai 300000 4000 February 2009
Tata-Fiat Ranjangaon (Pune) 100000 4000 Late 2008
Tata Motors Singur (West 350000 1500 Late 2008
General Talegaon (Pune) 140000 1200 Mid-2008
Honda city Bhiwadi 60000 1000 Mid-2009
The main objective of many of these manufacturing industries is to expand India’s car
exports from around 2, 20,000 units per year.

In recent time Tata Motors launched “NANO” (People’s car) on 10 th January,2008

Thursday at the ninth Autoexpo at Delhi. The launching of “Tata-Nano” car by
Mr.Ratan Tata is a defining moment in the history of India’s Automobile Industry and
this event was attended by about 400 media personnel and was on air by various
television channels.

The Journey of Tata Motors from Train to Truck, from Truck to Nano Car.

• 1945 : TELCO (Tata Engineering and Locomative Company starts work

after completion of second world war.
• 1954 : TELCO starts to make Trucks in Joint Venture with German
Company Daimler Benz.
• 1994 : It starts to make Mercedes Benz in Joint Venture, first time in India,
• 2002 : Partnerships with Daimler Benz came to an end.
• 2002 : The Name of TELCO Company change and known as “Tata Motors”
• 2003 : Ratan Tata declared to make worlds Cheapest car for Rs.1 lac.
• 2004 : Tata Motor take over “DEVU” Company of South
Korea and got listed in NewyorkStock Exchange
• 2005 : Tata Motors purchased 21% share holding of Spanish Bus.
• 2008 : Tata Motors launch 100000.00 Rupees the Cheapest Car of the world.

Tata group is one of the oldest and the most reputed group of companies in India.
The founder of this group was Sir Jamshedji Tata. Earlier “Tata Motors” known as
“TELCO” (Tata Engineering and Locomative Company). It commenced work in the
year 1945 after completion of Second World War. Initially company was
manufacturing truck and then in the year 1994 TELCO Co. started the production of
Mercedes-Benz, Joint Venture with “Demler Benz Co.” of Germany. In the year 2002
the name of TELCO Co. changed to “Tata Motors”
Tata Group comprises 98 operating companies in 7 business sectors as Information
Systems, Communication, Engineering, Materials, Services, Energy, Consumer
Products and Chemicals. Tata Companies provide employment to about 2,89,500
people and have share holder’s base of over 2.9 million and market capitalization of
66.9 billion as on February 21,2008.

Tata motor is a second largest company in the world in making passenger vehicle and
heavy bus Manufacturing with revenue of US$ 7.2 billion in the year 2006-’07.

In the year,2003 Mr. Ratan Tata the Chief of Tata Group declared that he will make
the worlds cheapest Car with dealer Price of Rs.1,00,000/- At that time many member
of different Automobile companies passed comment for Mr.Ratan Tata and their
Mission. One member of Osamu Suzuki said that-“this is impossible mission” and
statement made by him that - “Tata will not be able to make a Rupees 1, 00,000/- Car.
But, Mr.Ratan Tata gave perfect answer to the critics, who said it is not feasible to
manufacture a car in Indian Rupees One lakh.

There is one message given by our Prime Minister, Mr.Manmohan Singh.He said that
“If our time and energy are consumed for worthless thoughts then how effectiveness
can comes in our task?” In same way Mr.Ratan tata fulfilled their dream by giving an
opportunity to the middle class people that to have own car. He said that “Ever since
we started work on the car, we have been hearing various negative statements” at that
time he put their full concentration behind making 1,00,000 Rs. Car and at that time if
they waste their time and energy behind thinking of these all negative statements then
today, Tata-Nano Car will not be among us.

The motivation of Mr.Ratan Tata to make one lakh Rs. Car is due to one Observation
he made and which motivated him to make the cheapest car with Dealer price of Rs.
1,00,000/- . We will know about that observation in his own words, He said that “I
observed family 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 and, I
decided to do something about it and it led to me to provide affordable, a safe, all
weather from a transport for such a family.” This was disclosed by him after
displaying their dream project at ninth Autoexpo, at Delhi.
Mr.Ratan Tata give dream to the middle class people as well as youth who are from
middle class by making car whose price will be affordable and attractive.

 Tata Motors Limited, formerly known as TELCO (TATA Engineering and

Locomotive Company), is a multinational corporation headquartered in
Mumbai, India. It is India's largest passenger automobile and commercial
vehicle manufacturing company. Part of the Tata Group, and one of the
world's largest manufacturers of commercial vehicles. The OICA ranked it as
the world's 20th largest automaker, based on figures for 2006.
 Tata Motors has its manufacturing base in Jamshedpur, Pantnagar, Lucknow,
 Tata Motors was established in 1945, when the company began manufacturing
locomotives. The company manufactured its first commercial vehicle in 1954
in collaboration with Daimler-Benz AG, which ended in 1969.
 In March 2008, it finalised a deal with Ford Motor Company to acquire their
British Jaguar Land Rover (JLR) business, which also includes the Rover,
Daimler and Lanchester brand names.The purchase was completed on 2nd
June 2008

 Companies Performance

Total Industry. Sales (Nos.) Total Com. Sales (Nos.) Mkt. Share (%)
2007-08 2006-07 Growt 2007-08 2006-07 Growt 2007- 2006-
h h 08 07
Commercial 5,58,977 5,17,327 8.1% 3,52,78 3,34,23 5.5% 63.2% 64.7%
Vehicles 5 8
Passenger 17,50,34 15,75,23 11.1% 2,32,86 2,46,04 -5.4% 13.3% 15.6%
Vehicles 7 5 4 2
Total 23,09,32 20,92,56 10.4% 5,85,64 5,80,28 0.9% 25.4% 27.8%
4 2 9 0
 News from various surveys and research worldwide
 Small cars have big potential: Survey Business Standard: January 15, 2008
 Tata Nano sets the platform for India as a frugal engineering hub January 11, 2008
 Global problems, Desi solutions The Economic Times: May 15, 2008
 Nano makes it to Time's most important cars of all time The Hindu Business
Line: January 17, 2008
 Indian auto industry to lead globally by 2020: IBM New Delhi: The Indian
automobile industry is all set to be the global leader by 2020 with the
trailblazing work done by the Tatas, according to IT and consultancy giant
IBM. September 08, 2008
(sources : Indian Brand Equity foundation
 The car itself is expected to boost the Indian Economy as well as expand the
Indian car market by 65%, according to rating agency CRISIL.

Controversies Involved

Controversies also arose about Tata's planned manufacturing unit for the car in
Singur, West Bengal, where the state government of West Bengal has allocated 997
acres (4.03 km²) to Tata Motors. The construction of the car factory on that tract of
land will require fertile agricultural land and the expropriation and eviction of ca.
15,000 peasants and agricultural workers.

The affected farmers fear they will receive inadequate or no compensation and
therefore lose their livelihoods. Activists near Kolkata, where Tata's manufacturing
unit is located, started burning the car in effigy.

In New Delhi, a group of six women protested wearing T-shirts bearing slogans that
said, "The Rs 1 lakh car has Singur people's blood on it." The Trinamool Congress
alleged that Tata motors usurped the agrarian land for the construction site and have
threatened to stall the manufacture of the car. The 11 cases were dismissed.

The Nano is alleged to have severely affected the used car market in India, as many
Indians opt to wait for the Nano's release rather than buying used cars, such as the
Maruti 800 (a rebadged Suzuki Alto), which is considered as the Nano's nearest
competitor. Sales of new Maruti 800s have dropped by 20%, and used ones by 30%
following the

 However, Due to the Singur land dispute, the "Stalled Car Factory" is "Costing
Jobs, Splitting Neighbors in West Bengal”
 “ Tata's problems in West Bengal are scaring off other industries hoping to
locate here, including Infosys, a software maker that wanted to build a
business park that would provide 5,000 jobs.
 Due to ongoing opposition to Tata's Singur car-factory by Mamta Banerjee,
who demanded land to be returned from the factory, Tata Motors took decision
to pull out of Singur. Tata Motors is manufacturing Tata Nano at its Pantnagar
 Tata Motors announced it was pulling out its Nano small car industrial project
from West Bengal's Singur and blamed the Mamata Banerjee-led Trinamool
Congress, which spearheaded the protests against the factory, for the 'painful'
 While existence of Tata Nano could lead to high industrial growth , the exit
lead west Bengal a loss of more than 80,000 crore .How ever Tata has to suffer
in terms of delay and settlement cost

The decision to relocate the Nano to Gujarat marks the end of a traumatic
experience for the house of Tata. It was the rapid decision making of the Gujarat
government which carried the day for the Narendra Modi government, with the state
government ready to hand over land within a matter of days.
In an interview shortly before rushing off to meet the CM, Mr. Tata looked back on
the Singur experience and spoke about the new scenario facing the Nano. Intriguingly
he left some hope for Singur saying that Tata Motors could revisit Singur if the
atmosphere was conducive
Last night. Ravi (Tata Motors MD Ravi Kant) has been going around
reviewing various sites. The final decision was taken last night. In fact, we have been
receiving letters from various state governments ever since we faced problems (at
Singur). Land was the main issue. It was a kind of insurance (at the time). But there
was a tremendous urgency once we made the statement on 22 August that we would
move if things didn't improve as we had already lost a lot of time. We started to
respond sometime in September to the offer from the states. We started running
around looking at the land. The same people had to look at the land on offer (to make
a proper comparison). The Gujarat chief minister moved really fast, and yesterday, we
took the decision. In other states there were processes to be gone through or things
which the legislative assembly had to do which may or may not happen despite the
best intention of the chief minister of the state. Gujarat enjoys the reputation of being
an investment-friendly state. So we decided late on Monday evening that we may as
well go with Gujarat as everything was in place
Well, when I said that, this project was not on our minds. We were already in Gujarat
through Tata Chemicals. And as luck would have it, we are here again.
Gujarat was able to define the land, secure possession of the land, the main
thing, at an unbelievably fast pace. In fact, if we could move a plant in a day, we
could have actually have started operating here, given the fact that everything was
ready in the state.

Gujarat doesn't believe in concessions. How did Gujarat's offer compare with that of
West Bengal?
Well, it is almost similar. Whatever we were offered in Singur, everything is being
matched here. The elements (incentives) may not be identical, but in totality, the
package is the same.

You plan to launch the Nano this winter from Pantnagar and Pune which have a
capacity of one lakh? How will you tackle a situation if the demand (for Nano)
It would be a makeshift kind of operation. Unlike a steel plant where capacities are
fixed, in car manufacturing you can outsource, you can redefine assembly lines. We
need to represent to the world that despite all this, we brought the car within the set

What impact would this relocation have on the company books?

All equipment from Singur will be moved. So, there is no loss there. We can retrieve
and utilize a fair amount of the fixed assets. There is no appreciable loss that will
reflect on our finances this year. It is not that the investment of Rs1, 500 crore is lost.
As for Singur we already have the land allotted to us. The state government wants us
to look at other projects and we will look at other projects. It is not that there will be a
crater there. We will do something in Singur in future if the state government wants us
to do something. We will do something, if the environment is conducive.
I don't know how much was the farmers' problem (and how much was political).
Political opposition should be subordinated to the better welfare of the country. Who
is the loser? Are the people really going to prosper, many of whom are below
subsistence level? I am sure, (despite this), West Bengal will attract more investments.
What about the people who had aspirations for jobs? These are the questions that
come to my mind. Political opposition must hold the (interests) of the country first
and then the state. I think, it is impacting everything. It is percolating like a coffee
machine. We are facing a downturn because of the tightness of credit. The US and
Europe are still reeling because of the write-offs and it is having a Domino's effect in
other industries. So nobody seems to know where it will bottom out.


• Tata is now 57th most valuable brand globally April 22, 2008
The Tata group’s intense activities in 2007 have seen it rising 45 places to No.
57 in Brand Finance Top 500 Global Brands

• Expectations
According to one report, India as well as other nations, such as European
nations[, have great expectations from the Nano and are keenly and eagerly
eagerly awaiting it, especially the electric version of the Nano.

• Modular design
In fact, Tata envisions going even further, providing the tools for local
mechanics to assemble the car in existing auto shops or even in new garages
created to cater to remote rural customers. With the exception of Manjeet
Kripalani, BusinessWeek's India bureau chief, few have focused on this
breakthrough element of the Nano innovation (, 1/10/08).

• Pricing strategy
Tata initially targeted the vehicle as "the least expensive production car in the
world"— aiming for a starting price of 100,000 rupees or approximately
$2300 US despite rapidly rising material prices
• Export expectation
Being world’s cheapest car it is expected that not only India demand for Nano
will go rise at global level. Since it meeting Euro-4 norms at this price so this
is taking as a future of small car segment.

• Reputation and Acceptance of Tata After launch

“TATAs have shown the world what Indian engineering is truly capable of”
Financial Times U K reports

• Enthusiastic support
Tata Motors is receiving preliminary and some very enthusiastic support in the
media and officials, even from Europe, for the electric-version from India as
well as other-nations. The enthusiasm is even higher than that for the petrol-

• Will the Nano succeed?

• Car of the Future?
• Is it fair to blame the Nano for the (upcoming) ills of Indian road
• What do you think? Is the Nano a car of the future? Or just another Yugo
debacle waiting to happen? Would you drive one?

• Emerging markets are a fertile ground for innovation. The challenge of

reaching dispersed, low-income consumers in emerging markets often spurs
significant innovation.
• As customers gain more power, they will demand more tailoring and value-
added service to meet their needs. Companies that innovate on this dimension
are likely to be richly rewarded.
• World is getting tougher day by day being unique is a competitive advantage.
Expectations to Nano has proved this .
• After 100 years to Henry Ford , Tata has proved him again not only he came
out of the expectations but also came out with a platform for Indian auto
• So this as per this project conclusion can be draw as a future car not only of
Indian but also if exported than could be to the world.

These are the automobile Car Company of the India.

This is something I'm going to talk about at the launch. For now, let me just say our
car will cause less pollution than a two-wheeler.

I'm trying to think of a parallel where someone has introduced a product at a

disruptively low price and changed the market. A good example would be the Swatch
watch, low-cost, trendy and with a wide range. Did Swatch finish off the Swiss watch
industry? No (in fact, it was a Swiss company that created Swatch, the same company
that produced Omega). Did it finish off Citizen and Seiko and other Japanese
competitors? No. Did Swatch cause the Japanese and others to produce something like
the Swatch? Yes, it did, but Swatch continued to dominate its niche.

The Structure of the competitor: Michel Porter has identified five forces that determine
the intrinsic long run profit alternativeness of a market segment: Indutry Competitions,
Potentials Entrants, substitudes, buyuer and suppliers. His model is showing in following


Threats of new Entrants

power of Bargaining
power of

Suppliers. Buyers

Threats of
Or services


(1)Threats of intense segment rivalry: segmentation is unattractive if it already contains

numerous, strong or aggressive competitors.Maruti 800, Maruti Omni, Spark

(2) Threats of new Entrants: segmentation attractiveness varies with the height of its
entry barriers. he most attractive segmentation is one in which entry barriers are high and
exit barriers are low. Few new firms can enter the Industry and poor performing firms can
easily Exit.
• In every month one Car to be Launched by many
Automobile Industry.

(3)Threats of substitutes Product: segmentation is unattractive when there are actual or

potential substitutes for the product.substitudes place a limit on Price and Profits.
• Two wheelers like Bikes, Scooter and moped
• Battery Vehicles
• CNG Vehicles

(4)Threats of buyers “Growing” bargaining power: segmentation is unattractive if the

buyer’s posse’s strong or growing bargaining power. Buyers bargaining power grows
when they become more concentrated or organized.
• People are Conscious about price and Quality
• Wrong perception of Customers about Nano as loe prices lead to poor quality ,

(5) Threats of suppliers “Growing”Barganing power: segmentation is unattractive if

companies suppliers are able to raise price or reduce quantity supplied. Suppliers tend to
be powerful when they concentrate or organized.

Segmenting Consumer Market:

Two broad groups are used to segment Consumer Market. Some researchers try to
form segment by looking at descriptive characteristics; Geographic, Demographic and
Psychographic. Then examine whether these Consumer Segment exhibited different
needs or products responses.
Other researchers try to form segments by looking at “Behavior” Consideration, such
as consumer response to benefits, the use occasion, or Brand. Once segment are
formed. these researchers sees whether different characteristics are associated with
each consumer response segment. For Example researchers might examine whether
people who want “Quality” rather than “Low Price” in buying Auto Mobile differ in
their Geographic Demographic and Psychographic make up.
The major segmentation variables are - Geographic Demographic and Psychographic
and Behavioral Segmentation.

1.Region North Gujarat
2.City Gandhinagar
3.Rural And Semi Urban Area Rural villages with a population over 10,000; semi
urban Areas; small towns with population between
20,000 and 50,000
Age >18
Family Size >5
Gender Male or Female
Income > 10,000/month
Occupation Student, Govt Service, Private Service, NGO, Any
Lifestyle Culture oriented, Sports oriented, Outdoor oriented
Occasions Regular, Special
Benefits Quality,Service,Economy,Speed
User Status First time user, Regular user
User Rate Heavy
Loyalty Status Strong, Absolute
Readiness Stage Aware, Informed, Interested, Desirous
Attitude towards Product Enthusiastic, Positive

Geographic Segmentation
Geographic segmentation calls for dividing the market into different geographical
units such as nations, states, regions, countries, cities or neighborhoods. In the Indian
context geographic segmentation assumes importance due to variations in consumer
preference & purchase habits across different regions and states of the country.

One of the major geographic segmentation variables relevant for marketers in India is
the division of markets into rural and urban areas. Differences in urban & rural
markets, based on different parameters including market potential, have major
implications for marketers. The need to segment the market geographically becomes
clearer when we look at some of the characteristics of the market. In India, there are
more than 5000 towns & over 638000 villages.

Geographic markets also vary in their product requirements. In arid regions of western
India such as Rajasthan & Gujarat during hot & dry summer seasons, air coolers are
used. However, this product ineffective in areas like where climate is hot & humid
during summer.

Demographic Segmentation:

Demographic Segmentation divides the market into groups on the basis of variables
such as age, family size, life cycle, gender, income, occupation, education, religion,
nationality, race, generation, & social class.

(a) Age: The age of consumers of Tata Nano are generally above 18 which is
minimum required for driving the car in India.

(b) Family Size: Generally the families of four to five members prefer to purchase the
Tata Nano because it is more suitable than any other cars like 800 as per body size
Maruti 800 is big then Nano but internally it has 30% more space than 800.
(c) Gender: Generally the gender does not affect the demand of Tata Nano because
both male & female drive this car but male appears much driving the Nano

(d) Income: The income of consumer is one of the most affecting factors. The family
or the person whose income is Rs. 10,000& Per Month can afford the Tata Nano.

Psychographic Segmentation
Psychographics is the science of using psychology & demographics to better
understand consumers. In psychographic segmentation, buyers are divided into
different groups on the basis of psychological/personality traits, lifecycle, or values.
Psychologically is called Life Style segmentation.

(a) Lifestyle: The lifestyle of the consumers plays an important role in the choice of
cars. Generally the consumers of Lower middle class prefer to buy the Tata Nano
because their lifestyle neither too much high nor too much low.

(1) Needs Motivation : If we see the advertise of Tata nano then we can understand
about the car, in every media of the advertisement like, News paper, Television, Radio
we can see or here some attractive news or information like
Milage,Colour,Design,Speed,Price,Discount Loan System, from that we can Motivate
our self for purchase that car.

There are two types of Needs

(A)Innuate Needs: Relation with body, its called Primary Need Exam-Food, Water
(B)Enquired Need: as per the Society you have to full field they needs, it’s called
Secondary Needs.

(2) Perception: Perception is very basic and fundamental factor which directly or
indirectly motivates or de-motivates people for purchase any thing.

People have positive attitudes toward Tata Motors of the providing excellent services
provides by Tata Steel and Tata Motors.

Behavioral Segmentation
In Behavioral Segmentation, buyers are divided into groups on the basis of their
knowledge of, attitude toward, use of, or response to a product.

(A)OCCASIONS: The car generally for the regular purpose of the family & also
special occasions. Indian people are very traditional so they buy car at the special
occasions like on Birth Day, Marrige Anniversary or any Festival like Diwali,
Dahsera, Akhatri Bij and others.

In India at on these occasions selling volume of the Car is always increasing every

What is research? In simple words, research is the study of materials and sources in
order to establish facts and to reach at new conclusions.

According to American Marketing Association “Research is the systematic and

objective identification, collection, analysis, dissemination, and use of information for
the purpose of assisting management in decision making related to the identification
and solution of problems (and opportunities) in marketing.”

Any research or study starts with Question or problem and research is undertaken to
get the solution.

Following are the objectives to undertake the research.

The very first step in marketing research process is to define carefully the objectives
of the study. It is important for the researcher to agree art the outset on the purpose
and objectives of the study to ensure that the research design is appropriate. A
carefully thought out statement of objectives helps to define the types and the level of

Types of Research:
There are mainly two types of market research the first one is problem Identification
and second one is problem solving market research.

1.) Problem Identification Research :

Research that is undertaken to help to identify problems which are not necessary
apparent on the surface and yet exist or are likely to arise in the future. For
example, what will be the consumer’s behavior while making decision for
purchasing “Tata-Nano” car and to know the consumer response whether it will be
negative or positive.

2.) Problem solving Research :

Research is undertaken to solve specific marketing problems. For example, After
putting “Tata-Nano” in market and there will be negative response and low demand
for it then to find out the reasons for its negative demand in the market and to find out
those reasons through research.

For example, “Tata-Motors” also undertake research to get the answer of following
Before they take decision to launch a new small car or not.
1. Who are my customer and potential customer?
2. What kind of people they are?
3. Where do they live?
4. Can and will they buy?

Research helps us to get the answer of above mentioned questions.

Thus, research helps producer to collect the information which reduces business risk.
It helps producer to identify sales opportunities and to develop action plans.

Following are the objectives of this Study:

Research is undertaken for following reasons.

1. To know awareness of potential customers about “NANO”

2. To Know the Perception of people toward pre-launched Tata Nano Car.


Types of Research Design Exploratory research Design

Source of Data A. Primary data : Survey method
B. Secondary data : Internet, Magazine, News papers
(Economics Times, Business Standard & Gujarat
Research Equipment Questionnaire
Sampling Technique Non Probability Technique - Convenience sampling method
Sample Size 150 Samples

Area of Research Dehradun

Research design:

Classification of Research Design: there are main two types of Research Design.

Research Design

Conclusive Research

Descriptive Research Casual Research

We had considered exploratory research design for my project in order to know

awareness of the potential customers and I want to know the willingness of potential
customers to buy “Tata-Nano” car. For this study, I have considered exploratory
research and descriptive research to know the awareness and purchase intention of
potential customers as well as to know the characteristics of groups such as
respondent’s age, their gender, education, income, occupation etc.
Sources of data:

To study the problem and to reach at conclusion , data are essential which are
collected from following sources.

Sources of Data

Primary Data Secondary Data

1. Primary Data : It means Data originated by the researcher for the Specific
Purpose of addressing the research problem. “Primary Data are collect to conduct
the study and helped to reach at the conclusions from the findings.
In this study, the primary data were obtain by survey method with the help of
structured questionnaire. Data were collected with the help of the response of
respondents, they provide information through questionnaire.

2. Secondary Data : “It means that Data collected for some purpose other than
problem at hand”. In this study, the secondary data obtained from the
websites, newspapers and Magazines.

Survey Methods:

The Survey method involves a structured Questionnaire, given to respondents which

is designed to obtain response or reaction for specific information.

There are four survey methods.

Methods of Survey

Personal Telephonic Mail Electronic

Interviewing Interviewing Interviewing Interviewing

In-Home Interview Mall Intercept Computer Assisted

To collect the primary data, I have used personal interviewing method. Respondents
were interviewed at their home, so, I relied upon in-home survey method.
Respondents were interviewed face to face at their homes. The task of Interviewer is
to contact respondents, ask the questions and record their response.

Research Instrument:

To obtain Primary data for this research I used survey method by designing
Questionnaire.” Questionnaire is a structured technique for data collection that
consists of a series of questions, written or verbal that a respondent answers.”
Questionnaire is a set of a questions through which we can obtain necessary
information from respondents.” We can collect the information such as the behavior,
attitude of respondents etc . We can also understand facts, their awareness, belief and
their future action plans.
Types of Questions

Structured Electronic
Questions Interviewing

Multi- Open- Closed-

Ranking Scale Dichotom Ended Ended

We had collected information from respondents with the help of structured questions
using multi choice questions, dichotomous and ranking questions for the primary

Sample and Sampling: -Sample means the unit or segment of the population selected
for investigation or search. Sampling is the Procedure by which using a small number
parts of the whole population we reach up to conclusion regarding the whole
population. There are mainly two types of sampling techniques are given below.

In this study, to get Information from respondents, we had considered non

probability sampling technique and select sample from total population through
convenience sampling method. In non probability sampling technique the chances of
selection of all elements of population are not equal and convenience sampling
method means sample drawn at the convenience of the interviewer people tend to
makes the selection at familiar location and choose respondents who are like

(1) Gender:



Male 106 Respondents are male

Female 44 Respondents are female
Total 100 Respondents
(2) Age:

Below 20 Respondents age are below 20 Years

20-25 Respondents age are between 20 to 25 Years
25-30 Respondents age are between 25 to 30 Years
30-35 Respondents age are between 30 to 35 Years
Above 35 Respondents age are above 35 Years
(3) Occupation:

Student 35 Respondents age are Student

Govt Service 60 Respondents age are Govt Service
Private Service 38 Respondents age are Private Service
NGO 03 Respondents age are NGO
Any Other 14 Respondents age are Any other
(4) Monthly (Family) Income:

Monthly Income

37 Below 10000
29 Above 25000

Below 10,000 14 Respondents were Monthly Family Income Below 10,000

10,000 – 15,0000 31 Respondents were Monthly Family Income 10,000 – 15,0000
15,000 – 20,000 39 Respondents were Monthly Family Income 15,000 – 20,000
20,0000 – 25,0000 29 Respondents were Monthly Family Income 20,0000 – 25,0000
Above 25,000 37 Respondents were Monthly Family Income Above 25,000
(5) Family Members:

Family members


Below 3
Above 5


Below 3 From 150 Responded 20 Responded have below 3 Family Members

3-5 From 150 Responded 87 Responded have 3-5 Family Members
Above 5 From 150 Responded 43 Responded have Above Family Members
(6) Are you from the urban area or rural area?





Urban 121 Responded are from Urban area

Rural 29 Responded are from Rural area
(7)Do you have any vehicle?





Yes 130 Responded have Vehicles

No 20 Responded have not Vehicles
If yes, then which type vehicle do you have?

Types of vehicle

14 21
Any Other

Moped 21
Scooter 36
Motor-cycle 67
Car 31
Any other 14

6 Responded have Moped & scooter

8 Responded have Moped & Motor Cycle
2 Responded have Moped & any other Vehicles
6 Responded have Moped & car
8 Responded have scooter & Motoe Cycle
8 Responded have Scooter & car
3 Responded have Scooter & any other vehicles
11 Responded have Motor-Cycle & Car
2 Responded have Motor-cycle & any other vehicles
4 Responded have scooter, Moped & Car
2 Responded Have scooter, Moped, Car & Motor-cycle
(8)Do you want to purchase car?

Wish to Purchase




Yes From 150 Responded 111 responded want to purchase Car

No From 150 Responded 39 responded do want to purchase Car
If yes then, which small car you prefer in your family?

1 6
15 Maruti
41 Hyundai
40 8 Fiat

Maruti From 111 responded 41 prefer to Maruti

Tata From 111 responded 40 prefer to Tata
Hyundai From 111 responded 8 prefer to Hyundai
Skoda From 111 responded 15 prefer to Skoda
General motors From 111 responded 41 prefer 1 to G.M
Fiat From 111 responded 6 prefer to Fiat.

Maruti is top level and best choice Small car of people then people prefer to Tata
Specify the rank order for the following criteria for the selection of car.

Rank Order

11 15
18 10 Speed
Low Maintenance
10 19 Barand Name
Low Price

Mileage 15% preference to Mileage

Look 10 % preference to Look
Speed 19% preference to Mileage
low Maintenance 11% preference to Mileage
Pick-up 10 % preference to Mileage
Brand Name 18% preference to Mileage
Low Price 11% preference to Mileage

When people wanted to purchase car first they give preference to sped then they
preference to low maintained then Mileage
(9) According to you Tata Nano car is:

Tata Nano is

Family Car
83 Personal Car

Family Car 83 responded believed that Tata Nano is family Car

Taxi Car 9 responded believed that Tata Nano is Taxi car
Personal car 58 responded believed that Tata Nano is Personal Car

From 150 responded 83 responded believed that Nano is family Car 58 people
believed that Tata Nano is Personal car & 9 Responded believed that Nano is Taxi car
means some people wanted to purchase Nano as a Passenger car.
(10) Are you aware of the promotions of Tata Nano car?

Aware of Promotion



Yes 150
No 00

From 150 Responded all responded were aware about Tata Nano from that we can
understand about the Tata Nano Popularity
If yes where?


12 6
17 Print Media
Telecast Media
Net Media
106 All

Print Media 85 Responded show promotion in print Media

Telecast Media 103 Responded show promotion in Telecast Media
Net Media 17 Responded show promotion in Internet
Outdoors 12 Responded show promotion in Outdoors.
All above 6 Responded show promotion in all media

85 Responded show promotion in print Media like news paper magazine or any book ,
103 Responded show promotion in Telecast Media like Television , 12 Responded
show promotion in Outdoors like poster , 17 Responded show promotion in Internet 6
Responded show promotion in all above Media.

62 Responded show promotion of Tata Nano in Print Media & Telecast Media
07 Responded show Promotion of Tata Nano in Print Media & Outdoors
15 Responded show Promotion of Tata Nano in Print Media & Net Media
15 Responded show Promotion of Tata Nano in Telecast Media & Net Media
09 Responded show Promotion of Tata Nano in Telecast Media & Outdoors
04 Responded show Promotion of Tata Nano in Net Media & outdoors
16 Responded show Promotion of Tata Nano in Print Media, Telecast Media & Net
07 Responded show Promotion of Tata Nano in Print Media, Outdoors & Net Media

(11) Would you like to purchase Tata Nano?

Purchase of Tata Nano


Yes 96 Responded want to purchase Tata Nano

No 54 Responded do not want to purchase Tata Nano

From 150 responded 111 responded wanted to purchase car and from 111
Responded 96 Responded wanted to purchase Tata Nano car means 84% Responded
wanted to purchase Tata Nano
Please rank the following criteria for selection to purchase Nano car:

Rank order of Tata Nano

28 Look
Low Maintenance
7 Pick-Up
20 10 Barand Name
Low Price

Criteria Rank
Mileage 12% preference to Mileage
Look 14% preference to Look
Speed 7% preference to Mileage
Low Maintenance 10% preference to Mileage
Pick-up 9% preference to Mileage
Brand Name 20% preference to Mileage
Low Price 28% preference to Mileage

When people want to purchase Tata Nano car then They Prefer first Low Price
28% Responded first Prefer to Low Price then second preference is Brand name 20% then
responded give preference at look 14%.Ratan Tata`s Targate wil success to cover
maximum middle level people because main features of Tata Nano is low Price & 28%
people want to purchase nano because of Low price.
(12) Do you want to purchase Tata Nano with Petrol Diesel or Gas kit?

Petrol 29 Responded want to purchase Nano in Petrol

Diesel 13 Responded want to purchase Nano in Diesel
Gas kit 33 Responded want to purchase Nano in Gas kit
Gas kit 21 Responded want to purchase Nano in Gas kit

29 Responded want to purchase Nano in Petrol 13 Responded want to purchase Nano

in Diesel 33 Responded want to purchase Nano in Gas kit 21 Responded want to
purchase Nano in Gas kit means demand of Gas-kit is very high then people
demanded petrol Car,
(13)Would you like to purchase Tata Nano in’ Loan’ or ‘Cash’?

Cash or Loan


51 Not Decided

Loan 51 Responded want to purchase Nano in loan

Cash 27 Responded want to purchase Nano in Cash
Not Decided 18 Responded want to purchase Nano in Not Decided

Indian Economical level is very low then other country level from 96 Responded 51
Responded want to purchase Tata Nano in Loan , 27 Responded want to purchase
Nano in Cash , 18 Responded want to purchase Nano in Not Decided to purchase in
Loan or Cash.
(14) Would you like to purchase Nano instead of Bike?

Tata Nano or Bike

43 strongly isagree
19 Agree
24 14 Strongly Agree

Strongly From 150 responded 43 responded Strongly Disagree purchase Nano

Disagree instead of Bike
Disagree From 150 responded 19 responded Disagree purchase Nano instead of
Neutral From 150 responded 14 responded Neutral purchase Nano instead of
Agree From 150 responded 24responded Agree purchase Nano instead of
Strongly From 150 responded 50 responded Strongly Disagree purchase Nano
Agree instead Bike

From 150 Responded 43 responded are strongly Disagree to purchase Tata

Nano instead of Bike 19 Responded agree for that 14 Responded neutral for that
comment 24 Responded agree to purchase Tata Nano instead of bike and 50
Responded believed that they are strongly agree to purchase Tata Nano instead of bike
means the level of positivity is high then negativity 74 are agree and 62 are not agree
to purchase Tata Nano instead of Second Car.
(15) Do you want to purchase Tata Nano instead of second hand Car?

Strongly From 150 responded 28 responded Strongly Disagree purchase Nano instead of second car
Disagree From 150 responded 10 responded Disagree purchase Nano instead of second car
Neutral From 150 responded 37 responded Neutral purchase Nano instead of second car
Agree From 150 responded 30 responded Agree purchase Nano instead of second car
Strongly From 150 responded 45 responded Strongly Disagree purchase Nano instead of second car

From 150 Responded 45 responded are strongly agree to purchase Tata Nano
instead of second hand car 30 Responded agree for that 37 Responded neutral for that
comment 10 Responded Disagree to purchase Tata Nano second hand car rather and
28 believed that they are strongly disagree to purchase Tata Nano instead of Second
car means the level of positivity is high then negativity 75 are agree and 38 are not
agree to purchase Tata Nano instead of Second Car.
(16) Tata Nano is comfortable for Youngster or Job service people?

Comfortable for

36 Youngsters
Job Service
Can not Say

Youngster From 150 responded 12 responded believed that Tata Nano is for Youngster
Job service people From 150 responded 36 responded believed that Tata Nano is for Youngster
Both From 150 responded 66 responded believed that Tata Nano is for Both
Can not say From 150 responded 36 responded believed that They can’t say anything

From 150 Responded 12 Responded believed that Tata Nano is making for
youngster 36 Responded believed that Nano is not for Youngster it is for Job service
people 66 Responded believed that it is for both Youngster & Job service people 36
Responded believed that they are not knowing the main objective of this car.
(17) Will Tata Nano Succeed or not?

Perception towards success of Tata Nano

8 Can not say

Yes From 150 responded 102 responded believed that Tata Nano will Sucess
No From 150 responded 40 responded believed that Tata Nano will`t Sucess
Can not say From 150 responded 8 responded believed that Tata Nano can`t say about it

From 150 responded 102 responded believed that Tata Nano 1 lakh
rupees car will success & 40% responded are not sure about that but 8% responded
believed that Tata Nano will not Success 96 Responded want to purchase Tata Nano &
from that 96 Responded 79 Responded Believed that Tata Nano will success & 11
Responded are not sure about this but 6 another Responded also believed that Tata Nano
will success Who did not want to purchase Tata Nano car.

Date: / / Place:-

1.) The geographical segmentation was our limitation as we have

restricted our research to Gandhinagar only.

2.) Timing was limiting factor for the study. Time chosen was too short to
prepare report and to meet respondents.

3.) Respondent bias was another limitation of the study. Respondent may not
have given us accurate information which was a constraint of our research.

4.) Resource constraint was another limitation due to which we are unable to do in
depth survey.

5.) Non Probability – Convenience Sampling Techniques which has

serious limitations. Convenience samples are not representative of any
definable population. Hence, it is not theoretically meaningful to generalize
any population from a convenience sample.

From this study, we can find that from the total of 150 Respondents
interviewed 111respondents would like to purchase car and out of that 111
respondents 96 respondents want to purchase Tata Nano Car means 86.48% are
interested in purchase Nano Car from the criteria of those Responded who want to
purchase car.

From this result, we can conclude that generally people whose income is more than
Rs. 45,000 they do not prefer to purchase Nano Car and the people whose income is
below Rs.10,000 generally they already possess vehicle and they don’t want to replace
it because as a financial condition Car is not preferred and neither they want to
purchase Nano Car.

Generally, Law of Demand says that as price of product or goods increases, demand
of that particular goods decreases and vice versa. But there are some exceptions which
do not obey this law of demand which are as under:
(I) luxurious goods (II). Giffen Goods

The people whose income is higher they don’t want to purchase it because they think
that Nano produced only for Middle class People and if they will purchase, it will
decrease their prestige in society but in some cases High profile people also purchase
Tata Nano the perception is different for that for example. Mika Singh Purchase Nano
Car he has also another 1crore rupees Car but he think that if I go on 1 crore car
people look at my Car not to me but if I go on Nano people look at me not Car.

50 responded are strongly agree to purchase Tata Nano instead of Bike & 45
Responded are strongly agree to purchase Tata Nano instead of secondhand car




 Naresh Malhotra. , Marketing Research-An Applied Orientation, FOURTH

EDITION, Pearson publication, pp 30-367
 Philip Kotler & Keller – Marketing Management
 Economics Times , Business Standard , Hindustan Times and Amar Ujala


The objectives of the Research Projects is to familiarize the
concepts, tools and techniques for understanding research project in business and writing
research Report.
Here my research objective is “People Perception toward pre-launched car Tata Nano”

Segmentation:- Market segmentation is consist of a group of customers who share

similar needs preferences, perception and buying habits.
Market segmentation is a process of dividing the total market
for good or services into several groups such that the members of each group are similar
with resect to the factors that influence demand.

Demographic Segmentation divides the market into groups on the basis of variables
such as age, family size, life cycle, gender, income, occupation, education, religion,
nationality, race, generation, & social class


(2) Gender:


(3) Age:

Below 20
Above 35

(4) Occupation:

Govt Service
Private Service
Any Other

(5) Monthly (Family) Income:

Below 10,000
10,000 – 15,0000
15,000 – 20,000
20,0000 – 25,0000
Above 25,000

(6) Family Members:

Below 3
Above 5

Geographic segmentation calls for dividing the market into different geographical
units such as nations, states, regions, countries, cities or neighborhoods. In the Indian
context geographic segmentation assumes importance due to variations in consumer
preference & purchase habits across different regions and states of the country.

(7) Are you from the urban area or rural area?



(8)Do you have any vehicle?


If yes, then which type vehicle do you have?


(9)Do you want to purchase car?


If yes then, which small car you prefer in your family?

General motors

Specify the rank order for the following criteria for the selection of car.

low Maintenance
Brand Name
Low Price

(10) According to you Tata Nano car is:

Family Car
Taxi Car
Personal car

(11) Are you aware of the promotions of Tata Nano car?

Yes 150
No 00

If yes where
Print Media
Telecast Media
Net Media
All above

(12) Would you like to purchase Tata Nano?


Please rank the following criteria for selection to purchase Nano car:

Criteria Rank
Low Maintenance
Brand Name
Low Price

(13) Do you want to purchase Tata Nano with Petrol Diesel or Gas kit?
Gas kit

(14)Would you like to purchase Tata Nano in’ Loan’ or ‘Cash’?

Not Decided

(15) Would you like to purchase Nano instead of Bike? 12


(16) Do you want to purchase Tata Nano instead of second hand Car? 1


(17) Tata Nano is comfortable for Youngster or Job service


Job service people
Can not say

(18) Will Tata Nano Succeed or not?

Can not say

Date: / /