Tata Nano Summary
Summary
About Tata Nano：
- The Project was kept as a secret in the Tata Motors’R&D section and named PROJECT X3.
- Started with its first plant in Singur, West Bengal from 2007
- Lead by Girish Wagh (General Manager, Tata Motors Ltd.)
- Objective was to create very low cost transportation system with four wheels for the bottom line of Pyramid.
- Used coopetition system (suppliers have to collaborate but simultaneously compete with each other)
- Guaranteed long-term contracts for specific components to Suppliers.
- The car was designed at Italy's Institute of Development in Automotive Engineering. Bosch, Mahle also played an important part in parts manufacturing.
-A team of 500 engineers worked in a 450 Hectares facility.
- The plant faced political and civil obstructions in Singur.
- The $30 billion plant was shifted to Sanand, Gujrat in 1 year by 3400 trucks covering over 2200kms.
- Tata Nano was launched in January, 2008 at the Auto Expo New Delhi.
External Analysis:
Macro Environmental Factors: 1.Policy:
- Initiation of the Automotive Mission Plan 2006-2016 (2006)
-Reduction of consumption tax 4% (2008-2009), due to decreased consumer confidence
-Access to Finance: A special form of car finance provided by Indian Central Bank (GTAI2009), due to tight credit market 2. Economy:
- GDP per capita grew by 32% from 2006-2009 → high disposable income → purchase power growth
- 2008-09 the sales volume of Indian automotive industry contributed 3% to the Indian GDP
- Passenger vehicles predicted growth rate of 16.7% until 2014
3. Technological:
- The need of fuel-efficient and environment friendly cars
- The need of improved safety technology 4. Natural:
- Main raw material is also affected by high inflation 5. Demographic:
- Growing population creates a huge market
- The increase of urbanization
Porter’s Five Forces:
1. Threat of the Entrants-------Moderate
-High Capital Investment
-R&D costs
-Government Policy & Regulation
-Large Distribution Channels
About Tata Nano：
- The Project was kept as a secret in the Tata Motors’R&D section and named PROJECT X3.
- Started with its first plant in Singur, West Bengal from 2007
- Lead by Girish Wagh (General Manager, Tata Motors Ltd.)
- Objective was to create very low cost transportation system with four wheels for the bottom line of Pyramid.
- Used coopetition system (suppliers have to collaborate but simultaneously compete with each other)
- Guaranteed long-term contracts for specific components to Suppliers.
- The car was designed at Italy's Institute of Development in Automotive Engineering. Bosch, Mahle also played an important part in parts manufacturing.
-A team of 500 engineers worked in a 450 Hectares facility.
- The plant faced political and civil obstructions in Singur.
- The $30 billion plant was shifted to Sanand, Gujrat in 1 year by 3400 trucks covering over 2200kms.
- Tata Nano was launched in January, 2008 at the Auto Expo New Delhi.
External Analysis:
Macro Environmental Factors: 1.Policy:
- Initiation of the Automotive Mission Plan 2006-2016 (2006)
-Reduction of consumption tax 4% (2008-2009), due to decreased consumer confidence
-Access to Finance: A special form of car finance provided by Indian Central Bank (GTAI2009), due to tight credit market 2. Economy:
- GDP per capita grew by 32% from 2006-2009 → high disposable income → purchase power growth
- 2008-09 the sales volume of Indian automotive industry contributed 3% to the Indian GDP
- Passenger vehicles predicted growth rate of 16.7% until 2014
3. Technological:
- The need of fuel-efficient and environment friendly cars
- The need of improved safety technology 4. Natural:
- Main raw material is also affected by high inflation 5. Demographic:
- Growing population creates a huge market
- The increase of urbanization
Porter’s Five Forces:
1. Threat of the Entrants-------Moderate
-High Capital Investment
-R&D costs
-Government Policy & Regulation
-Large Distribution Channels