PRODUCT DESIGN AND

DEVELOPMENT
TATA NANO

By
Suryansh munjal
Ratan Tata announces his vison of a small car and says ideal price
level of an affordable family car should be about 1 lakh rupees
 IDEA SCREENING
 A scooter with two extra wheels for better stability at the back ?
 An auto rikshaw with four wheels ?
 A four wheeled rural car ?
 A four wheeled car made up of engineering plastics?
 A four wheeled open car with side safety bars ?
CONCEPT TESTING AND
DEVELOPMENT
 Mr Girish wagh leader of tata engineering
team conducted a survey with help of a
team and he himself talked to the
customers and found out that they insisted
on a cheap yet dependable car.
The small car project team headed by Mr. Girish
Wagh tried out several innovation and different
ideas and designs specifications and made
possible engineering changes to keep the cost
below one lakh.
Every design had to cater three key requirements:
• Cost
• regulatory requirements
• Acceptable performance standards
WHAT TYPE OF PRODUCT
SHOULD BE DEVELOPED?
 Should be built on a different platform .
 Must meet all the regulatory and safety
requirements .
 should be exportable to other countries.
 BUSINESS ANALYSIS
Rivalry with existing
Threats of new
Bargaining competitors.
power of
entrants  Tata was able to produce a cheap car because..
suppliers
 Mother plant
Rivalry among
Bargaining  Manufacturing the complete car
competing firms
power of buyers
 Having one of the best engine technology of
that time (FIAT)
Threats of
substitute
products
 BARGAINING POWER OF
BUYERS
 No other competitors are there because
tata was the only one providing cheapest
Threats of new
entrants
Bargaining
power of car so buyers had low bargaining powers
suppliers

Rivalry among Bargaining

competing firms power of buyers

Threats of
substitute
products
 BARGAINING POWER OF
SUPPLIERSLow bargaining power of

suppliers because….
Threats of new
Bargaining  97% of the parts were sourced
power of
entrants
suppliers locally.
 only 20 companies supply 70 %
Rivalry among
competing firms
Bargaining
power of buyers of the components

Threats of
substitute
products
 Now the question was “how much to produce?”

 It was estimated that the peoples demand for the

car will be atleast twic the demand for Maruti
800, the lowest end car then (2005).
 Initial projections were about 500k cars per year
Three designs were presented finally one was picked
in mid 2005.
 PRODUCT DEVELOPMENT
 engine capacity Bosch 624 twin cylinder.
 Low capacity, lighter, sufficient, with better power rear engine to reduce the transmission
length using a balancer shaft.
 4 speed manual gear box .
 higher thermal conductivity than cast iron, lighter and better mileage.
 engine management system by Bosch.
 superb control over emission and smooth acceleration.
 PRODUCT
DEVELOPMENT
( CONTD…)
 Better ride than Maruti 800 ( 2005)
 safety adequately met.
 Tubeless tires
 less length but more inner cabin space due to height more leg room