The Tata Nano: The People's Car (A)

Submitted By maxiguer
Words: 949
Pages: 4
Open Document
Case: The Tata Nano: The People's Car (A)
NPR Story:
In addition to the case please read the following NPR article: http://www.npr.org/templates/story/story.php?storyId=92289904 Tata Nano:
10/1/2008, Tata Motors unveiled a $2,500 car – The Nano – “Rs1 lakh car” or “the people’s car” scheduled launch 09/2008
Smallest car in the world, room for 4 adults, most fuel efficient car
Cost for Indians INR100,000 + 12.5% AVT+ Road and Transportation Taxes launch of 2-cylinder gasoline-powered version
Diesel versions soon after
As the Nano’s expected launch approached, downturn in TM stock price from $18.60/share in September 09/2007 to $9.53 in 09/2008, almost 50% drop.
Market middle-class families and college students. 2 wheelers owner, first time and used cars buyer
Increase households that could afford a car by 65%.
Environemental nightmare

Tata Group:
Conglomerate with international interests in engineering, energy, information systems and communications, materials, services, consumer products, and chemicals.
Its 96 companies employed 650,000 people on six continents
Tata Engineering and Locomotive Co. Ltd, train manufacturer, was established in 1945
Tata Engineering collaborated with Mercedes Benz (1954-1969) for CV and trucks
1990s, Tata enter passenger-vehicle market with India’s 1st sport utility vehicle: Tata Sierra
1998, jackpot with the Tata Indica
2002 Launch of the Indigo – most popular car in India
2004 acquire the Daewoo Commercial Vehicle Co. Ltd., Korea’s 2nd-largest truck manufacturer
2004, Tata Motors 1st Indian manufacturing company to be listed on the NY SE.
2005 launch India’s first indigenously developed mini truck, called the Tata Ace
2005 acquire 21% stake in Hispano Carrocera SA, Spanish bus manufacturer.
2008 acquire Jaguar and Land Rover
6st largest commercial vehicle manufacturer in the world – India’s largest automotive company
Globally, the company served the European, African, Asian, Middle Eastern, and Australian markets.
India’s automotive industry:
Benefited from market liberalization in the 90s – with eased regulations on foreign trade and restrictions on private companies.
International companies took advantage of cheap highly trained engineers, and established manufacturing operations throughout the country.
In 2005, experts predicted that India would become the world’s third-largest economy by 2020.
2005–06, one of the largest and fastest-growing car markets in the world – passenger car market 25% growth per year, and passenger-vehicle exports growing by 12.7% annually.
India’s exports, mainly to Asia and Africa, growing at a rate approaching 30% annually and had already reached 850,000 units in 2005–06, up to 65% growth in exports some years.

Economy car Segment:
Maruti 50% market share with $5000 pricing
Car ownership in India 8-25/1000 people
Fasted growing car market expected in 2009
Media population 25 and fastest growing middle class

Cars sold via dealer networks, and sales volume depended both on network and the sales per dealer.
J.D. Power and Associates study of the Asia Pacific market: Tata’s dealer margins across the various models ranged from 4% to 10%.
A.T. Kearney study estimated the profit margin of ultra-low-cost cars at 2%/ 3%—about $75 for the $2,500 Tata Nano.
Dealers received further discounts if they paid cash up front to Tata— about 1% of full dealer cost.
Tata Motors contribution margins estimate is about 15%.

Used cars
Used car sales in India had fallen preceding Nano’s launch.
The price of a used Maruti 800 fell 30%

Two- and three-wheelers
2007, India’s two-wheeler market was 2nd-largest globally, with 8M units sold.
By 2011, 2-wheeler production was forecast to 18 million units.
Typical motorbike cost about INR37,000 (1/3 of a Nano).
Manufacturers: Bajaj Auto, Hero Honda, TVS Motor, Yamaha Motor, and Kinetic.

Bajaj Auto dominated the market for passenger-carrying 3-wheelers used for
Show More

Related Documents: The Tata Nano: The People's Car (A)

Term Paper

Correctional Health Care Increasing Staff Motivation and Satisfaction MGMT 591: Leadership and Organizational Behavior Professor Brett Gordon December 17, 2012 The organization that will be the topic of discussion in my final project paper is Georgia Health Sciences Universities (GHSU), Georgia Correctional Healthcare (GCHC) division. GHSU is both a hospital and teaching institution based in Augusta, Georgia. GHSU was founded in 1828. Georgia Health Sciences University is home to…

Words 2285 - Pages 10

Term Paper

companies use shady accounting practices to enflate revenue or hide losses, the public can’t get an accurate picture of what they are investing in. The public demanded that something be done, so in 2002 the U.S. govt passed the Sabex-Oxly act. For my term paper I will examine some the corporate scandals that led to the creation of the act. Deragulation was lobbied for hard on wall street during the Bush Presidency. The public was lead to believe that loosing the rules on corporate practices would lead…

Words 999 - Pages 4

Term Paper

Learning activity Term Paper Test for Hidden Bias The Implicit Association Test, tests for unconscious biases. I chose this learning activity to see if I have any hidden biases. I have always believed that I was a straight shooter never putting on a facade or giving a false presentation of myself. To prepare for taking this activity, I made sure that I was in a quiet room, away from any distractions. I concentrated on each activity as they appeared on my computer screen. I chose six categories to…

Words 765 - Pages 4

Term Paper

Community Organization September 16 2013 Compare and Contrast Community Organizations The two community organizations that I choose to compare and contrast is Do-All,Inc and United Way. I have worked with both of these organizations in the past, and they are both really good organizations, and do a lot of improve the overall community. Do-All, Inc. evolved from a dream for a better life for people with disabilities. Do-All, Inc was formed in 1952 by the Bay County Association of Retarded Citizens…

Words 723 - Pages 3

term paper

Progressive Roots - In the beginning of the 1900s, America had 76 million people, mostly in good condition. Then before the first decade of the 20th century, the U.S. would be influenced by a “Progressive movement’ that fought against monopolies, corruption, inefficiency, and social injustice. 1. The purpose of the Progressives was to use the government as an agency of human welfare. - The Progressives had their roots in the Greenback Labor Party of the 1870s and 1880s and the Populist Party…

Words 2369 - Pages 10

Term Paper

Pediatric Oncology Nursing Did you know that one in one hundred new nurses will become a pediatric oncology nurse? Pediatric oncology nursing is a very demanding and heartwarming career. To be a pediatric oncology nurse means to be a primary care coordinator for the management of patients with cancer. A pediatric oncology nurse will assess patient needs, implementing a plan with appropriate tasks for the patient to gain progress. Not only will the pediatric oncology nurse help with the patient…

Words 1781 - Pages 8

Term Paper

Introduction Software as a Service (SaaS) has the potential to transform the way information-technology (IT) departments relate to and even think about their role as providers of computing services to the rest of the enterprise. The emergence of SaaS as an effective software-delivery mechanism creates an opportunity for IT departments to change their focus from deploying and supporting applications to managing the services that those applications provide. A successful service-centric IT, in turn…

Words 6880 - Pages 28

Term paper

issues that occur there are many that people may not be aware of, but the ones that will be discussed to explore ethical situations are Unauthorized Access related to software, hardware, network, internet web mining, IT freedom and hacking. This paper examines how each unauthorized access should be handled and provides examples of each related area of security. Security – Unauthorized Access Unauthorized access is known as the act of gaining access to a network, system,…

Words 3103 - Pages 13

Term Paper

The Emancipation Proclamation and the Death of an American Hero. Students Name Professor’s Name History 150 Online 10 March 2014 There were many different events that happened during the time of President Abraham Lincoln and the Civil War. President Abraham Lincoln came up with the Emancipation Proclamation which was an effort to help end slavery, eventually leading to the thirteenth amendment to abolish slavery altogether. Sadly his life was cut short. John Wilkes Booth assassinated him…

Words 1950 - Pages 8

Term Paper

he Glass Menagerie is a very character oriented poem. Tom, Amanda, and Laura are all very well developed characters. They all have significant and unique characteristics that are shown well throughout the poem. Tom is the most interesting to me though because of his qualities and even his flaws. Tom has a few different and contradicting characteristics such as he is easily persuaded, his determination and his strong sense of guilt. Tom Wingfield seems to be easily entrapped and persuaded into…

Words 348 - Pages 2