Positioning of Nano

(Now You Can Do)

People who could not afford a 4 wheeler or take a lot of

time to own
People to climb up social ladder
Green statement- lowest carbon dioxide emissions amongst
all cars in India
The car received USD $ 220 million of PR globally
Nano became synonym for small. Nano news , Nano breaks
became buzz

Capacity Constraint
Potential of Nano 1 million per year
Capacity of 50000 cars/ year at Pantnagar plant
Future plans to shift Nano to Singur in East, Sanand in West in a time
range of 18 24 months
Started production at Sanand in January 2010 with capacity of 2,50,000
cars on 2 shift basis & 3,50,000 cars on 3 shift basis
Peak Potential of plant is 5,00,000 cars per annum
Bookings of Nano:
Huge demand forced to adopt booking mode
Customers to pay in advance & wait for car
By May 2009, received 2,60,000 bookings where production was limited
to 1,00,000
Generated random 1 lakh customers & delivered
Provided option to either encash or retain deposit with Tata

Market Potential
Domestic Market
Minicar segment is expected to grow at 50.4% CAGR between
2008-09 to 2013-14
Year

Million Units

2008-09

0.05

2013-14

0.38

Disposable income- by 2020 there would be 439 million consumers

who can spend $4000 - $ 5000 for vehicle

International Market
Global sales forecast of Ultra Low cost segment( $ 3100 to
$ 7800) is 15.6 million in 2020 from 2.6 million in 2009 of
which 75% demand is from China, India & Rest of Asia
Indian exports to grow at CAGR of 19.6% from 2008-09 to
2013-14
Target markets for Nano(similar emission& safety
regulations)
Asia
Africa

Market Challenges
Competition:
Attractive Segment- ULC growth rate of 24%
Toyota Etios at $ 10826
Ford Figo at $ 7600
Renault- Nissan: Collaborate with Bajaj & launch car for $ 3000 by 2012
Hyundai $ 3700 car

Future
Steps:

Mode

Action

Issues

Conservat
ive

Limited supply & huge

demand

Cede market to
competition

Aggressiv
e

Take advantage of first

mover advantage

Financial
investments on low
margin vehicle

Struck with financial constraints where they already invested $0.44

billion on Nano
Full capacity plant with 2,50,000 capacity would cost $0.37
billion(estimated of Maruti)