Me Nano

Tata Nano- A CRITICAL ANALYSIS

Ankit Raj

Avneet Singh Bhatia

Mihir Pandya

Prashant Mishra

Priti Singh

Sandeep Singh

Saumya Raghuvanshi

Shreya Shrimali

Somnath Prasad

Vibha Sarna

Vishi Segal

A Brief Intro…"Dream-dream and dream, because dream gives vision, vision gives thoughts and finally thoughts lead to the action“-India's former President Dr. A.P.J. Abdul Kalam.

“I observed families riding on two-wheeler the father driving the scooter, his young kid standing in front of him, his wife seated behind him holding a little baby. It led me to wonder for such a car which is safe & affordable to any middle class family.”

Ratan Tata 2003, dreamt of producing a safe, affordable Car for the common man.

Demand AnalysisDemand Of Car is 1 Lakh.

Expected booking = 5 lakh.

Booking done 2.03 lakhs.

This is because of lack of availability of test drive cars.

Demand is high because the nearest competitor is MARUTI 800 which is about 2 lakh high priced.

As the excise duty has been reduced thus there is a demand for the small cars rather than the big cars.

Demand is so high that customers are selected randomly

Supply Analysis

Supply is only 50,000.

Supply is less becuse there is no production capacity right now for nano.

Demand & Supply

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DemandSupply

Pricing Strategies

Pricing policy with minimum profit margin.

Budget 2008 has reduced the excise duty for small cars from 16% to 12%.

Therefore, advantage for Tata Nano.

Cost Cutting TacticsNano's boot does not open, instead the rear seats can be folded down to access the boot space.Has a single windscreen wiper instead of the usual pair.some exterior parts of it are glued together, rather than welded.

No power steering.

Simplified door opening lever .

3 nuts on the wheels instead of the 4 statutory nuts.

Only 1 side view mirror

Demand ForecastingDemand will rise beyond Tata’s Productive power.

As per current situation, Tata seems to catch up in around 3-4 years.

Number of Production Plants = 1 (Pant Nagar Plant )

Other 2 plants will get active around 2010.

Estimate says, number of cars book today ~1 million.

If 3 plants work in full swing, expected productivity = 0.25 million cars per year.

i.e. Waiting Time for consumer may even extend to 4years.

- OUR PERCEPTION

Barriers/ChallengesFuel price hikes.

Increase in material cost like steel and tires.

Speed Limit.

Only a city car.

Shift from singur to Gujarat.

Safety of car fiber body.

Low suspension power.

Low engine capacity.

Light Vehicle.

Not suitable for hilly areas.

Less boot space.

Poor engine cooling & hence over heating.

No headlight levelers.

No Modern Facilities.

Market Nature

Oligopoly market.

Few of competitors.

Pricing strategies of nano has affected its competitors.

Knows its competitors.

Competitors : Maruti Suzuki, Chevrolet, Hyundai.

Business AnalysisGreat Innovation.

Car for masses.

For middle class.

Almost monopoly in its segment.

Thank You