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TATA NANO

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TATA NANO

Tata Group chairman Ratan Tata on Thursday unveiled theTata Nano at the 9th Auto Expo in New Delhi on 10th Jan2008

will be launched before Tata Motors next AGM (Annual

General Meeting) i.e in the 2nd half of 2008. Small - will seat four to five people and cheapest can in

the world

scooter parts

Nano means small in the mother tongue of Ratan Tata. Smallest and cheapest car in the world cost Rs 1,00,000

Called as peoples car

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FEATURES OF TATA NANO

PRICE- Rs 1 lakh, plus value-added tax (VAT) plus transportcharges.

POLLUTION- lower than 2-wheelers. SAFETY - the 623 cc, 33 HP petrol engine meets Bharat

Stage-III emission norms and can also meet the Euro 4

norms. ENGINE- 623-cc petrol engine generating 33 bhp of power, a

30-litre fuel tank and 4-speed manual gearshift , no powersteering, front disk and rear drum brakes. The companyclaims mileage of 23 km per litre.

The Nano will come in three variants -- standard and twodeluxe models with AC. FACILITY- air conditioning, The car's dashboard features just

a speedometer, fuel gauge, and oil light, does not havereclining seats or radio. The shock absorbers are basic.

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HOW IT WAS MADE FOR ONLY ONELAKH

Make things small and lighter

Aluminum engine instead of cast iron

Rear engine no requirement for link b/wengine and rear wheel

Tabular design instead of conventional roddesign

Regular bulbs instead of long life bulbs Plan to assemble the car at dealers

workshop cut logistics spends.

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EMERGING RIVALS

Maruti-Suzuki will completely reskin Maruti 800 (similar to what the company recently did with Zen-Estilo) nextyear. The company will rebrand it and even power it with a 600cc engine against the current 800cc.

The Munjal family behind Hero Honda, India's largest two wheeler maker, which is mulling a foray into the four-wheeler segment .is said to be in talks with BRP (Bombardier Recreational Products) for developing a 500cc smallcar to rival Tatas one lakh car. Hero Group was reported to have been closely monitoring the Rs one lakh projectby Tata Motors and learn from it to de-risk its own Endeavour.

Renault Nissan is the first one to come up with a idea to rival Tatas car it plans to produce a car priced at below$3,000 (Rs 1.30 lakh) in India. As Renaults local partner Mahindra is not interested in making such a low costcar, Renault- Nissan may settle with indias robust two wheeler manufacturer.

Incidentally Bajaj is also planning to foray into four wheeler through a smart car. More are chances for a new JVbetween Bajaj and RenaultNissan to rival Tatas one lakh car. carmaker Honda Siel said it will enter into small-car segment with the launch of 'Jazz' in 2009. said in auto expo

said honda siel india ltd. President. Indias lone electric vehicle maker is believed to be developing a small car based on its Reva platform for the

redhot Rs 1-lakh car market. Revas one lakh car would be a four-seater , four-door model and will be poweredby heavy batteries than its existing line-up and the new car can reach a top speed of 100-120kph (80kph for thecurrent Reva products) . Revas low cost car is expected by 2010. The current Reva range comes in three variantspriced in the range of Rs 3.3-4 .3 lakh in India.

Chinese manufacturers like chery which are scouting to enter the indian market may use this opportunity for theirdebut since they already products in this price range. These subcompact car segment may also attract new indianplayers like ICML and Xenitis.

Global auto a JV of Xentis Group and Chinas Guangzhou Automobile Industry based in bengal plans to introducea peoples car that would be in sync with the affordability factor. Xenitis signed a Memorandum ofUnderstanding (MoU) with GAIG to manufacture four-wheelers. The proposed xenitis small car is likely to go onsale by the end of October 2008. Global Auto has launched a motorcycle called Xpression early this year.

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TATA NANO IS THREAT FOR

Two wheeler manufacturers

The countrys largest car manufacturer

used-car dealers - Second hand car buyerswho spends between 1.5-2.5lakh maymove easily for the new Tatas one lakhcar.

Prominent small car players

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NEGATIVE POINTS

Few disadvantages in a rear engine car:

uneven weight distribution and hence poortraction control

poor cornering and poor handling

poor engine cooling and hence more

chance for engine overheating almost no boot space and cramped space

for rear passengers

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NEGATIVE POINTS

More congested roads

More supply - More surplus as less export

More competition Less margins

Low quality

High Real estate prices - parking spaceand parking charges will become more

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WORLDS 5 CHEAPEST CARS

1. Cheapest cars Tata Nano

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2. Cheapest cars Chery QQ3

city car marketed in 2003. In China, it is sold for29,000-50,000 Remnibi, while internationally it ispriced at $5,000. antilock brake systems, dual frontairbags, power windows and a Euro-III compliantengine with air-conditioning.

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3. Cheapest cars Maruti 800

Introduced in 1983,

800cc engine,great fuel efficiency and low maintenance cost.

Tagged at $5,200, it is available in both ACand non-AC versions.

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4. Cheapest cars: Merrie Star

Made by China-based Geely Automobile, four doors ,

riced at $5,500, it was launched in 2005 enginesize ranging from 1.0 to 1.3 litres, Geely exportsthis model to Southeast Asia and Africa.

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5. Cheapest cars S-RV Mini SUV

Launched in 1998, the HQ or Haoqing S-RVbelongs to the HQ series by Geely Automobile,China. This five-door, five-seater is very roomy,adjustable pitch seats, The basic model is pricedat $5,780.

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FUTURE QUESTIONS

Can the Tatas meet the expectations?

Will the one lakh car convey the indias potentialto the world?

Will Tata stick to its price tag?

Will it make sense for Tata to have a car whenother players are moving to premium segments?

Will the more demanding customers like the lowcost machine?

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SOME MYTHS

Curtains replacing glass windows, removable bolt-onseats instead of the regular ones, roof will be anoptional add-on, and plastic body panels insteadof the regular metal panels. Yes, Tata had talks

with General Electric for using its re-engineeredplastics for its low cost car and Tata may makeuse of modern adhesives instead of welding to cutdown cost, but still there is no definite direction in

this issue but certainly there will be no curtains.The one lakh car will be a complete car withdefinite roof and glass windows.

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