o“ Dream-dream and dream, because dream gives vision, vision gives thoughts and finally thoughts lead to the action". Each letter of these motivational words said by India's former President Dr. A.P.J. Abdul Kalam goes exactly with Mr. Ratan Tata, Chairman of Tata group, who in the year 2003, dreamt of producing a safe, affordable Car for the common man.
Finally after the wait of five years, crossing all financial and technological barriers, Ratan Tata kept his promise and unveiled Tata 'Nano' on 10th January 2007, at the 9th Auto Expo 2008 in New Delhi. Tata Nano, cool & smart, launched by Tata Motors is world's cheapest Car with a price tag of $ 2500. 3.Description about Nano
oThe project has literally become India's claim-for-fame in the international-media due to Tata Motors' innovation in developing the car, as well as keeping it low in price. oThe car itself is expected to boost the Indian Economy, create entrepreneurial-opportunities across India, as well as expand the Indian car market by 65%. oThe car was envisioned by renowned industrialist, Ratan Tata, Chairman of the Tata Group and Tata Motors, who has described it as an eco-friendly "people's car".
oNano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version. oTata Group is expected to mass-manufacture the Nano in very large quantities, particularly the electric-version, and, besides selling them in India, to also export them world-wide.
4.Features Length 3.1 metres Width 1.5 metres Height 1.6 meters Engine All-aluminium, Rear Mounted, Rear Wheel Drive Capacity 623 cc Power 33 PS Fuel Injection Multi Point Fuel Injection (MPFI) Fuel Type Petrol, Diesel Version will be later Body Type Sheet Metal Seating Capacity 04 (Four) Mileage 20-22 Kmpl (City drive) 26 Kmpl (Highways) Top Speed 75 K.M Emission Norms Euro-IV, Bharat Stage-III compliant Safety Norms Frontal Crash Tested Versions One Standard and Two Deluxe 5.Reactions about Nano
o"It's a good historic moment for the Indian auto industry and also a proud one indeed that an Indian company took a step forward on this road. Its an upgradation for an auto wheeler rider to by a car now.“ oRajesh Jejurikar, Managing Director, Mahindra and Renault's. o"It's good product but it's still too early to say whether it will overtake the 800 because it caters to a totally new market segment.” oSaid Jagdish Khattar, Former MD of Maruti Udyog Limited
o"Meeting the proper quality standards and safety is not feasible at all in such a model. Andreas Prinz, Managing Director (Passenger Cars), Volkswagen Group Sales India. o"I think it is a great thing for India because mobility is giving new opportunities. I hope Tata drives to great success with the Rs one lakh car, but it is not included in our plan.“ oThomas Kuehl, Board Member, Skoda Auto India .
6.What makes it so cheap ! oThe Tata Nano uses plastics and adhesives rather than welding. ointroducing the car with an artificially low price through govt-subsidies and tax-breaks, or ousing vertical-integration, or opartially using inexpensive polymers or biodegradable plastics instead of a full metal-body. oIt has no AC, no power steering, no power windows, no power bells and whistles. 7.Target Market
oThe low-cost car is clearly intended for the masses . For the family of four that would otherwise ride on a scooter, precariously balancing a tiny tot on the front and a baby on the wife’s lap. For the first-time car buyer in India - a huge market despite the increasing number of cars in the urban and semi-urban areas. oIts Also attract the small cars buyers like maruti 800.
8.Fundamental Analysis oOverview of Indian Economy oIndustrial Profile oProfile of Indian Automobile Industry oTata Motors 9.Overview of Indian Economy oThe Indian economy continued to register impressive GDP growth, although the rate of growth declined marginally over the previous year, reflecting inflationary trends driven by the increase in the cost of energy and raw materials. The level of industrial activity has also begun to decline as a result of fiscal constraints imposed on money supply and the raising of interest rates . oInvestment flows into India increased by 20% to a record level of about Rs.
120,000 Crores. oThe Indian automotive sector grew by 10% overall during the year with substantial growth in the Light Commercial Vehicles sector and new passenger car introductions. In the country 499,978 new commercial vehicles were sold during the year and passenger car sales grew to 1.53 million vehicles this year. 10.
11.Indian Automobile Industry oAccording to the UNIDO International Yearbook of Industrial Statistics 2008, India features among the top 15 auto-makers. Currently, it ranks 11th in the world in terms of car production and 13th in terms of commercial vehicle production, which includes both 2-wheelers and 4-wheelers. At the same time, the Indian car makers are earning acclaim worldwide. ostatistics:
oThe first automobile in India rolled in 1897 in Bombay. oIndia is being recognized as potential emerging auto market. Foreign players are adding to their investments in Indian auto industry. oWithin two-wheelers, motorcycles contribute 80% of the segment size. oUnlike the USA, the Indian passenger vehicle market is dominated by cars (79%).
Tata Motors dominates over 60% of the Indian commercial vehicle market. oIndia is the fourth largest car market in Asia - recently crossed the 1 million mark. o2/3rd of auto component production is consumed directly by OEMs. oIndia is the largest three-wheeler market in the world and the largest two-wheeler manufacturer in the world. oIndia is the second largest tractor manufacturer in the world. oIndia is the fifth largest commercial vehicle manufacturer in the world. oThe number one global motorcycle manufacturer is in India. 12.Automobile Industry
13.Automobile Industry oThe liberalization policy and various tax reliefs by the Govt. of India in recent years has made remarkable impacts on Indian Automobile Industry. Indian auto industry, which is currently growing at the pace of around 18 % per annum, has become a hot destination for global auto players like Volvo, General Motors and Ford. oIn India there are 100 people per vehicle, while this figure is 82 in China. It is expected that Indian automobile industry will achieve mass motorization status by 2014.
oThe passenger vehicle industry also witnessed a slowdown but managed to grow by 11.1% by increasing discounts on mature products, launching new models and due to reduction in excise duty announced by the government in Budget during February’08. oVehicle exports also grew, albeit at a slightly lower rate of 11.9% as compared to 14.8% witnessed in the previous year oThe domestic commercial vehicle industry grew by 6.9% as compared to over 33% growth achieved in the last fiscal. 14.Automobile Export
15.Tata Motors Limited oTata Motors Limited , formerly known as TELCO (TATA Engineering and Locomotive Company), is a multinational corporation headquartered in Mumbai, India. It is India's largest passenger automobile and commercial vehicle manufacturing company. Part of the Tata Group, and one of the world's largest manufacturers of commercial vehicles. The OICA ranked it as the world's 20th largest automaker, based on figures for 2006.
oTata Motors has its manufacturing base in Jamshedpur, Pantnagar, Lucknow, Pune. oTata Motors was established in 1945, when the company began manufacturing locomotives. The company manufactured its first commercial vehicle in 1954 in collaboration with Daimler-Benz AG, which ended in 1969.
oIn March 2008, it finalised a deal with Ford Motor Company to acquire their British Jaguar Land Rover (JLR) business, which also includes the Rover, Daimler and Lanchester brand names.The purchase was completed on 2nd June 2008. 16.Performance of the company’s stock prices ( vis-à-vis Sensex and Auto index ) 17.Market price data on BSE/NSE
18.Companies Performance 19.News from various surveys and research worldwide
oSmall cars have big potential: Survey Business Standard : January 15, 2008 oTata Nano sets the platform for India as a frugal engineering hub livemint.com : January 11, 2008 oGlobal problems, Desi solutions The Economic Times : May 15, 2008 oNano makes it to Time's most important cars of all time The Hindu Business Line : January 17, 2008 oIndian auto industry to lead globally by 2020: IBM New Delhi:
The Indian automobile industry is all set to be the global leader by 2020 with the trailblazing work done by the Tatas, according to IT and consultancy giant IBM. September 08, 2008 o(sources : Indian Brand Equity foundation www.ibef.org )
oThe car itself is expected to boost the Indian Economy as well as expand the Indian car market by 65%, according to rating agency CRISIL. 20.Obstacles to Nano
oHowever, Due to the Singur land dispute, the "Stalled Car Factory" is "Costing Jobs, Splitting Neighbors in West Bengal” o“ Tata's problems in West Bengal are scaring off other industries hoping to locate here, including Infosys, a software maker that wanted to build a business park that would provide 5,000 jobs. oDue to ongoing opposition to Tata's Singur car-factory by Mamta Banerjee , who demanded land