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Nano Strategy

Presented By :

Anil Kumar

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History-TATA Nano

Seeing an opportunity in the great number of Indianfamilies with two-wheeled rather than four-wheeledvehicles, Tata Motors began development of an

affordable car in 2003.The purchase price of this nofrills auto was brought down by dispensing with mostnonessential features, reducing the amount of steelused in its construction, and relying on low-costIndian labor.

The introduction of the Nano received much mediaattention due to its low price, and the car wasavailable to buy throughout India in early 2011.

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To develop TATA into a world class

Indian car brand for innovative

and superior value vehicles

VISION

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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

Mission

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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.

.

Idea Generation Of Nano

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SWOT Analysis

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Price

Mileage

StyleBrand Name

First Innovation

Fiber Body

Low SuspensionLight Weight

Not Suitable for Hilly Areas

Delay due to Singur

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Bikers can be motivated

Auto rickshaw & second hand market

Other competitors

Traffic Congestion

New Regualtions

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Tata Nano

Manufacturer Tata Motors

Also called one-lakh car

Production 2008

presentAssembly Pantnagar, Uttarkhand, India[

Charodi, Gujarat, India (since June 2010)

Class City car

Body style 4-door

Layout RR layout

Engine 2 cylinderSOHCpetrolBoschmulti-point fuelinjection (single injector) allaluminium 624 cc (38 cu in)

Transmission 4 speed synchromesh withoverdrive in 4th

Wheelbase 2,230 mm (87.8 in)[3]

Length 3,099 mm (122.0 in)[3]

Width 1,495 mm (58.9 in)[3]

Height 1,652 mm (65.0 in)[3]

Kerb weight 600 kg (1,300 lb)635 kg (1,400 lb)[3]

Designer Justin Norek of Trilix, Pierre Castinel[4]

http://en.wikipedia.org/wiki/Automotive_industryhttp://en.wikipedia.org/wiki/Tata_Motorshttp://en.wikipedia.org/wiki/Lakhhttp://en.wikipedia.org/wiki/Pantnagarhttp://en.wikipedia.org/wiki/Uttarkhandhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Charodihttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Car_classificationhttp://en.wikipedia.org/wiki/City_carhttp://en.wikipedia.org/wiki/Car_body_stylehttp://en.wikipedia.org/wiki/Automobile_layouthttp://en.wikipedia.org/wiki/RR_layouthttp://en.wikipedia.org/wiki/Internal_combustion_enginehttp://en.wikipedia.org/wiki/Cylinder_(engine)http://en.wikipedia.org/wiki/SOHChttp://en.wikipedia.org/wiki/Petrolhttp://en.wikipedia.org/wiki/Robert_Bosch_GmbHhttp://en.wikipedia.org/wiki/Multi_Point_Injectionhttp://en.wikipedia.org/wiki/Multi_Point_Injectionhttp://en.wikipedia.org/wiki/Fuel_injectionhttp://en.wikipedia.org/wiki/Aluminiumhttp://en.wikipedia.org/wiki/Cubic_centimetrehttp://en.wikipedia.org/wiki/Cubic_inchhttp://en.wikipedia.org/wiki/Transmission_(mechanics)http://en.wikipedia.org/wiki/Synchromeshhttp://en.wikipedia.org/wiki/Overdrive_(mechanics)http://en.wikipedia.org/wiki/Wheelbasehttp://en.wikipedia.org/wiki/Tata_Nanohttp://en.wikipedia.org/wiki/Tata_Nanohttp://en.wikipedia.org/wiki/Tata_Nanohttp://en.wikipedia.org/wiki/Tata_Nanohttp://en.wikipedia.org/wiki/Kerb_weighthttp://en.wikipedia.org/wiki/Tata_Nanohttp://en.wikipedia.org/wiki/Automotive_designhttp://en.wikipedia.org/wiki/Tata_Nanohttp://en.wikipedia.org/wiki/File:Tata_Nano_im_Verkehrszentrum_des_Deutschen_Museums.JPGhttp://en.wikipedia.org/wiki/Tata_Nanohttp://en.wikipedia.org/wiki/Automotive_designhttp://en.wikipedia.org/wiki/Tata_Nanohttp://en.wikipedia.org/wiki/Kerb_weighthttp://en.wikipedia.org/wiki/Tata_Nanohttp://en.wikipedia.org/wiki/Tata_Nanohttp://en.wikipedia.org/wiki/Tata_Nanohttp://en.wikipedia.org/wiki/Tata_Nanohttp://en.wikipedia.org/wiki/Wheelbasehttp://en.wikipedia.org/wiki/Overdrive_(mechanics)http://en.wikipedia.org/wiki/Synchromeshhttp://en.wikipedia.org/wiki/Transmission_(mechanics)http://en.wikipedia.org/wiki/Cubic_inchhttp://en.wikipedia.org/wiki/Cubic_inchhttp://en.wikipedia.org/wiki/Cubic_inchhttp://en.wikipedia.org/wiki/Cubic_centimetrehttp://en.wikipedia.org/wiki/Aluminiumhttp://en.wikipedia.org/wiki/Fuel_injectionhttp://en.wikipedia.org/wiki/Multi_Point_Injectionhttp://en.wikipedia.org/wiki/Multi_Point_Injectionhttp://en.wikipedia.org/wiki/Multi_Point_Injectionhttp://en.wikipedia.org/wiki/Multi_Point_Injectionhttp://en.wikipedia.org/wiki/Robert_Bosch_GmbHhttp://en.wikipedia.org/wiki/Petrolhttp://en.wikipedia.org/wiki/SOHChttp://en.wikipedia.org/wiki/Cylinder_(engine)http://en.wikipedia.org/wiki/Internal_combustion_enginehttp://en.wikipedia.org/wiki/RR_layouthttp://en.wikipedia.org/wiki/Automobile_layouthttp://en.wikipedia.org/wiki/Car_body_stylehttp://en.wikipedia.org/wiki/City_carhttp://en.wikipedia.org/wiki/Car_classificationhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Charodihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Uttarkhandhttp://en.wikipedia.org/wiki/Pantnagarhttp://en.wikipedia.org/wiki/Lakhhttp://en.wikipedia.org/wiki/Tata_Motorshttp://en.wikipedia.org/wiki/Automotive_industry

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Design

The car's exterior was designed at Italy'sInstitute of Development in AutomotiveEngineering.

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Cost cutting features

The Nano's design implements many cost-reducinginnovations.

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.

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At its launch the Nano was available in India in threetrim levels.

The Tata Nano Std priced at 142,000 (US$3,166.6) with achoice of three exterior colors, single-color seats, and a fold-down 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, assistedbrakes and fold-down rear seat with nap rest.

The Tata Nano LX at 195,000 (US$4,348.5) with all of thefeatures of the Cx plus fabric seats, central locking, front powerwindows, body-colored bumpers, fog lamps, a trip meter, a cupholder, mobile phone charging capabilities and a rear spoiler.

Price & Model versions

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Indian used car market

The Nano is thought to have affected the usedcar market in India, as some Indians may optto buy a Nano rather than a used vehicle. The

new-car market is also being affected. Sales ofnew Maruti 800s, the second-cheapest car inIndia, dropped by 20% and used models by

30% immediately prior to the Nano's

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Strategy

Time honored International strategy

Effectively used parliamentary politics as business strategy

Politics shaping Nanos future

Earlier less reliance on states

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Considered government as a regulator

Ratan Tata changed the groups Attitutde

Involved the state as partner Relationship between state and group improved

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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

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Contd..

Exploited such weakness to its advantage

Incentive package in Uttarakhand/Himachal Pradesha)100% exemption from excise duty for 10 years

b)100% exemption from Corporate Income tax

WB out of desperation walked into the trap

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Singur factory pullout

Main article: Tata Nano Singur controversy Tata Motors announced in 2006,[citation

needed] that the Nano would bemanufactured in Singur, West Bengal, helped

in part by a forced acquisition and reuse offarmland by the West Bengal stategovernment to entice Tata to build there.Local farmers soon began protesting the

forced acquisition of their land for the newfactory. As the protests continued through2007 and 2008,Tata first delayed the Nanolaunch and later decided to build the car in adifferent state (Gujarat) instead.

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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

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Land Controversy

Acquired Land

Compensation

Misunderstanding

Admitted Mistake

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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

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Effects on West Bengal

Brand Image

Damages to the Public property

Losses bearedUnemployment

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Effects on Tata Motors

Tata Gained a Seven Crucial Months

- Commodity Prices declined

- Advances

- Mobilise the Funds

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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

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Reliable Infrastructure

Locations - Government owned land

Charodi and Chharal villages in Sanand the ultimate choice

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

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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

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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

THE SWEETNERS

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Benefits to Component manufacturers and Vendors

New Investment opportunities and positive sentiment in Gujarat

Benefit to Real estate market

Additional jobs and training opportunities

Benefits to Gujarat

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