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Nano Strategy

Presented By : Anil Kumar

History-TATA Nano
Seeing an opportunity in the great number of Indian families with two-wheeled rather than four-wheeled vehicles, Tata Motors began development of an affordable car in 2003.The purchase price of this no frills auto was brought down by dispensing with most nonessential features, reducing the amount of steel used in its construction, and relying on low-cost Indian labor. The introduction of the Nano received much media attention due to its low price, and the car was available to buy throughout India in early 2011.

VISION
To develop TATA into a world class Indian car brand for innovative and superior value vehicles

Mission
To be the most admired multi-national Indian company producing vehicles that people love to buy To create an organization that people enjoy working for doing business with and investing in

Idea Generation Of Nano

I saw families ridding around on scooters with kids standing up and mother carrying a baby and sitting Pillion and decided to do something about . It started as an quest for an affordable transportation solutions. .

SWOT Analysis

Price Mileage Style Brand Name First Innovation


Fiber Body Low Suspension Light Weight Not Suitable for Hilly Areas Delay due to Singur

Opportunities
Bikers can be motivated Auto rickshaw & second hand market

Threats

Other competitors

Traffic Congestion
New Regualtions

Tata Nano
Manufacturer Also called Production Assembly Class Body style Layout Engine Transmission Wheelbase Length Width Tata Motors one-lakh car 2008present Pantnagar, Uttarkhand, India[ Charodi, Gujarat, India (since June 2010) City car 4-door RR layout 2 cylinder SOHC petrol Bosch multi-point fuel injection (single injector) allaluminium 624 cc (38 cu in) 4 speed synchromesh withoverdrive in 4th 2,230 mm (87.8 in)[3] 3,099 mm (122.0 in)[3] 1,495 mm (58.9 in)[3]

Height
Kerb weight Designer

1,652 mm (65.0 in)[3]


600 kg (1,300 lb)635 kg (1,400 lb)[3] Justin Norek of Trilix, Pierre Castinel[4]

Design

The car's exterior was designed at Italy's Institute of Development in Automotive Engineering.

Cost cutting features


The Nano's design implements many cost-reducing innovations. The Nano's trunk is only accessible from inside the car, as the rear hatch does not open. One windscreen wiper instead of the usual pair. No power steering, unnecessary due to its light weight. Three lug nuts on the wheels instead of the usual four. Only one wing mirror. No radio or CD player. No airbags in base model. 623cc engine has only 2 cylinders. No air conditioning in base model.

Price & Model versions


At its launch the Nano was available in India in three trim levels.
The Tata Nano Std priced at 142,000 (US$3,166.6) with a choice of three exterior colors, single-color seats, and a folddown rear seat. The Tata Nano CX at 171,000 (US$3,813.3) with five color options, air-conditioning, two-tone seats, a parcel shelf, assisted brakes and fold-down rear seat with nap rest. The Tata Nano LX at 195,000 (US$4,348.5) with all of the features of the Cx plus fabric seats, central locking, front power windows, body-colored bumpers, fog lamps, a trip meter, a cup holder, mobile phone charging capabilities and a rear spoiler.

Indian used car market

The Nano is thought to have affected the used car market in India, as some Indians may opt to buy a Nano rather than a used vehicle. The new-car market is also being affected. Sales of new Maruti 800s, the second-cheapest car in India, dropped by 20% and used models by 30% immediately prior to the Nano's

Strategy

Time honored International strategy Effectively used parliamentary politics as business strategy Politics shaping Nanos future Earlier less reliance on states

Considered government as a regulator Ratan Tata changed the groups Attitutde Involved the state as partner Relationship between state and group improved

Location of Manufacturing Plant

TML intending to set manufacturing plant Considered locating plants in various states Accurate understanding of : Political interests Compulsion of State Government

Contd..

Exploited such weakness to its advantage Incentive package in Uttarakhand/Himachal Pradesh a)100% exemption from excise duty for 10 years b)100% exemption from Corporate Income tax WB out of desperation walked into the trap

Singur factory pullout


Main article: Tata Nano Singur controversy Tata Motors announced in 2006,[citation needed] that the Nano would be manufactured in Singur, West Bengal, helped in part by a forced acquisition and reuse of farmland by the West Bengal state government to entice Tata to build there. Local farmers soon began protesting the forced acquisition of their land for the new factory. As the protests continued through 2007 and 2008,Tata first delayed the Nano launch and later decided to build the car in a different state (Gujarat) instead.

Singur - Tata
Govt. WB keen for rapid industrialisation Approached Tata Motors Tata Motors showed interest in locating the plant in WB Chose Singur a small town in Hoogly district of WB Govt. WB provided TML a loan of 200 crores at 1% interest

Tata enjoying the most of incentives!!!

A comprehensive package of incentives Electricity Clause Electricity at Rs.3kwh Loan Repayment Loan with interest repayable in annual installments Lease rental

Land Controversy
Acquired Land Compensation Misunderstanding Admitted Mistake

Great agitation and great aggression


You cannot run a plant where the wall is being broken; you cannot run a plant where bombs are being thrown from all the sides; you

cannot run a plant where the people have been intimidated or


threatened. This is only during the construction, what happens when we actually start running the plant!
-Ratan Tata Chairman,Tata Motors Ltd

FRONT LINE ,Volume 25 - Issue 22 :: Oct. 25-Nov. 07, 2008. INDIA'S NATIONAL MAGAZINE

Effects on West Bengal


Brand Image Damages to the Public property Losses beared Unemployment

Effects on Tata Motors


Tata Gained a Seven Crucial Months - Commodity Prices declined - Advances - Mobilise the Funds

Fight for Nano Begins Again


West Bengals loss another States gain Karnataka 1st to offer

Gujarat offered 3 strategic locations


- Mundra in Kutch district - Charodi in Sanand - Surat

Orissa offered land at Gopalpur


Maharashtra, Andhra Pradesh, Uttarakhand also made an offer

You are stupid if you are not in Gujarat - Ratan Tata

Vibrant Gujrat
Reliable Infrastructure Locations - Government owned land Charodi and Chharal villages in Sanand the ultimate choice

Benefits to
Loan of Rs 9,570 crores
THE DEAL

Rs 2,900 cr for Nano plant


Rs 6,670 cr for Infrastructure development

Repayment of Rs 9,570 cr loan @ 0.1% over 20 years

THE SWEETNERS
100% exemption on electricity duty Concessional power tariff 1,100 acre land comes cheap No stamp duty, Registration and transfer charges Payment for land in 8 equal annual instalments

Benefits to Gujarat

Benefits to Component manufacturers and Vendors New Investment opportunities and positive sentiment in Gujarat Benefit to Real estate market Additional jobs and training opportunities

Thank You