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Presentation

OnTata Nano

PRESENTED BY:GYAN RANJAN

PRABHAT MANI TRIPATHI

ROHIT MISHRA


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Introduction Of Tata Nano Dream-dream and dream, because dream gives vision, vision gives

thoughts and finally thoughts lead to the action". Each letter of thesemotivational words said by India's former President Dr. A.P.J. AbdulKalam goes exactly with Mr. Ratan Tata, Chairman of Tata group,who in the year 2003, dreamt of producing a safe, affordable Car forthe common man. Finally after the wait of five years, crossing all

financial and technological barriers, Ratan Tata kept his promise andunveiled Tata 'Nano' on 10th January 2007, at the 9th Auto Expo2008 in New Delhi. Tata Nano, cool & smart, launched by TataMotors is world's cheapest Car with a price tag of $ 2500.


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Description about Nano

The project has literally become India's claim-for-fame in the international-media due to Tata Motors' innovation in developing the car, as well askeeping it low in price.

The car itself is expected to boost the Indian Economy, createentrepreneurial-opportunities across India, as well as expand the Indian carmarket by 65%.

The car was envisioned by renowned industrialist, Ratan Tata, Chairman ofthe Tata Group and Tata Motors, who has described it as an eco-friendly"people's car".

Nano has been greatly appreciated by many sources and the media for itslow-cost and eco-friendly initiatives which include using compressed-air as

fuel and an electric-version. Tata Group is expected to mass-manufacture the Nano in very large

quantities, particularly the electric-version, and, besides selling them inIndia, to also export them world-wide.


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FeaturesLength 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


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Reactions about Nano

"It's a good historic moment for the Indian auto industry and also a proud one indeedthat an Indian company took a step forward on this road. Its an upgradation for anauto wheeler rider to by a car now.

Rajesh Jejurikar, Managing Director, Mahindra and Renault's.

"It's good product but it's still too early to say whether it will overtake the 800 becauseit caters to a totally new market segment.

Said Jagdish Khattar, Former MD of Maruti Udyog Limited

"Meeting the proper quality standards and safety is not feasible at all in such a model.Andreas Prinz, Managing Director (Passenger Cars), Volkswagen Group SalesIndia.

"I think it is a great thing for India because mobility is giving new opportunities. I hopeTata drives to great success with the Rs one lakh car, but it is not included in ourplan.

Thomas Kuehl, Board Member, Skoda Auto India.
http://www.surfindia.com/automobile/maruti-udyog-ltd.htmlhttp://www.surfindia.com/automobile/skoda-auto-india-private-ltd.htmlhttp://www.surfindia.com/automobile/skoda-auto-india-private-ltd.htmlhttp://www.surfindia.com/automobile/maruti-udyog-ltd.html


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What makes it so cheap !

The Tata Nano uses plastics and adhesivesrather than welding.

introducing the car with an artificially low pricethrough govt-subsidies and tax-breaks, or

using vertical-integration, or

partially using inexpensive polymers orbiodegradable plastics instead of a full metal-

body. It has no AC, no power steering, no power

windows, no power bells and whistles.


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TargetMarket

The low-cost car is clearlyintended for the masses. Forthe family of four that wouldotherwise ride on a scooter,precariously balancing a tiny

tot on the front and a baby onthe wifes lap. For the first-timecar buyer in India - a hugemarket despite the increasingnumber of cars in the urbanand semi-urban areas.

Its Also attract the small carsbuyers like maruti 800.


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Fundamental Analysis

Overview of Indian Economy

Industrial Profile

Profile of Indian Automobile Industry

Tata Motors


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Overview of Indian Economy

The Indian economy continued to register impressive GDP growth,although the rate of growth declined marginally over the previousyear, reflecting inflationary trends driven by the increase in the costof energy and raw materials. The level of industrial activity has alsobegun to decline as a result of fiscal constraints imposed on moneysupply and the raising of interest rates .

Investment flows into India increased by 20% to a record level ofabout Rs. 120,000 Crores.

The Indian automotive sector grew by 10% overall during the yearwith substantial growth in the Light Commercial Vehicles sector andnew passenger car introductions. In the country 499,978 newcommercial vehicles were sold during the year and passenger carsales grew to 1.53 million vehicles this year.


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Indian Automobile Industry According to the UNIDO International Yearbook of Industrial Statistics 2008,

India features among the top 15 auto-makers. Currently, it ranks 11th in theworld in terms of car production and 13th in terms of commercial vehicleproduction, which includes both 2-wheelers and 4-wheelers. At the same time,the Indian car makers are earning acclaim worldwide.

statistics: The first automobile in India rolled in 1897 in Bombay.

India is being recognized as potential emerging auto market. Foreign players are addingto their investments in Indian auto industry.

Within two-wheelers, motorcycles contribute 80% of the segment size.

Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%). TataMotors dominates over 60% of the Indian commercial vehicle market.

India is the fourth largest car market in Asia - recently crossed the 1 million mark.

2/3rd of auto component production is consumed directly by OEMs.

India is the largest three-wheeler market in the world and the largest two-wheelermanufacturer in the world.

India is the second largest tractor manufacturer in the world.

India is the fifth largest commercial vehicle manufacturer in the world.

The number one global motorcycle manufacturer is in India.


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Automobile Industry


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Automobile Industry The liberalization policy and various tax reliefs by the Govt. of India in

recent years has made remarkable impacts on Indian AutomobileIndustry. Indian auto industry, which is currently growing at the paceof around 18 % per annum, has become a hot destination for globalauto players like Volvo, General Motors and Ford.

In India there are 100 people per vehicle, while this figure is 82 in

China. It is expected that Indian automobile industry will achievemass motorization status by 2014.

The passenger vehicle industry also witnessed a slowdown butmanaged to grow by 11.1% by increasing discounts on matureproducts, launching new models and due to reduction in excise duty

announced by the government in Budget during February08. Vehicle exports also grew, albeit at a slightly lower rate of 11.9% as

compared to 14.8% witnessed in the previous year

The domestic commercial vehicle industry grew by 6.9% ascompared to over 33% growth achieved in the last fiscal.


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Automobile Export


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Tata Motors Limited Tata Motors Limited, formerly known as TELCO (TATA

Engineering and Locomotive Company), is a multinationalcorporation headquartered in Mumbai, India. It is India's largestpassenger automobile and commercial vehicle manufacturingcompany. Part of the Tata Group, and one of the world's largestmanufacturers of commercial vehicles. The OICA ranked it as the

world's 20th largest automaker, based on figures for 2006. Tata Motors has its manufacturing base in Jamshedpur, Pantnagar,

Lucknow, Pune.

Tata Motors was established in 1945, when the company beganmanufacturing locomotives. The company manufactured its first

commercial vehicle in 1954 in collaboration with Daimler-Benz AG,which ended in 1969.

In March 2008, it finalised a deal with Ford Motor Company toacquire their British Jaguar Land Rover (JLR) business, which alsoincludes the Rover, Daimler and Lanchester brand names.The

purchase was completed on 2nd June 2008.


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Performance of the companys

stock prices (vis--vis Sensex and Auto index)


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Market price data on BSE/NSE


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Companies Performance


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News from various surveys andresearch worldwide

Small cars have big potential: Survey Business Standard: January 15, 2008

Tata Nano sets the platform for India as a frugal engineering hublivemint.com: January 11, 2008

Global problems, Desi solutions The Economic Times: May 15, 2008

Nano makes it to Time's most important cars of all time The Hindu Business

Line: January 17, 2008

Indian auto industry to lead globally by 2020: IBM New Delhi: The Indianautomobile industry is all set to be the global leader by 2020 with thetrailblazing work done by the Tatas, according to IT and consultancy giantIBM. September 08, 2008

(sources : Indian Brand Equity foundation www.ibef.org) The car itself is expected to boost the Indian Economy as well as expand

the Indian car market by 65%, according to rating agency CRISIL.
http://www.businessstandard.com/common/storypage.php?autono=310735&leftnm=1&subLeft=0&chkFlg=http://www.livemint.com/2008/01/10234921/Tata-Nano-sets-the-platform-fo.htmlhttp://economictimes.indiatimes.com/Features/Special_Pages/The_Global_Indian_Takeover/Global_problems_Desi_solutions/articleshow/3040702.cmshttp://www.thehindubusinessline.com/2008/01/18/stories/2008011852560200.htmhttp://www.thehindubusinessline.com/2008/01/18/stories/2008011852560200.htmhttp://www.ibef.org/artdisplay.aspx?cat_id=60&art_id=20232http://www.ibef.org/http://en.wikipedia.org/wiki/Indian_Economyhttp://en.wikipedia.org/wiki/Indian_Economyhttp://www.ibef.org/http://www.ibef.org/artdisplay.aspx?cat_id=60&art_id=20232http://www.thehindubusinessline.com/2008/01/18/stories/2008011852560200.htmhttp://www.thehindubusinessline.com/2008/01/18/stories/2008011852560200.htmhttp://economictimes.indiatimes.com/Features/Special_Pages/The_Global_Indian_Takeover/Global_problems_Desi_solutions/articleshow/3040702.cmshttp://www.livemint.com/2008/01/10234921/Tata-Nano-sets-the-platform-fo.htmlhttp://www.businessstandard.com/common/storypage.php?autono=310735&leftnm=1&subLeft=0&chkFlg=


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Obstacles to Nano However, Due to the Singurland dispute, the "Stalled Car Factory"

is "Costing Jobs, Splitting Neighbors in West Bengal

Tata's problems in West Bengal are scaring off other industrieshoping to locate here, including Infosys, a software maker thatwanted to build a business park that would provide 5,000 jobs.

Due to ongoing opposition to Tata's Singurcar-factory by MamtaBanerjee, who demanded land to be returned from the factory, TataMotors took decision to pull out of Singur. Tata Motors ismanufacturing Tata Nano at its Pantnagarplant.

Tata Motors announced it was pulling out its Nano small carindustrial project from West Bengal's Singur and blamed theMamata Banerjee-led Trinamool Congress, which spearheaded theprotests against the factory, for the 'painful' decision.

While existence of Tata Nano could lead to high industrial growth ,the exit lead west Bengal a loss of more than 80,000 crore .However Tata has to suffer in terms of delay and settlement cost .
http://en.wikipedia.org/wiki/Singurhttp://en.wikipedia.org/wiki/Singurhttp://en.wikipedia.org/wiki/Mamta_Banerjeehttp://en.wikipedia.org/wiki/Mamta_Banerjeehttp://en.wikipedia.org/wiki/Pantnagarhttp://economictimes.indiatimes.com/Singur_exit_Tata_not_to_reconsider_decision/articleshow/3557557.cmshttp://economictimes.indiatimes.com/Singur_exit_Tata_not_to_reconsider_decision/articleshow/3557557.cmshttp://en.wikipedia.org/wiki/Pantnagarhttp://en.wikipedia.org/wiki/Mamta_Banerjeehttp://en.wikipedia.org/wiki/Mamta_Banerjeehttp://en.wikipedia.org/wiki/Singurhttp://en.wikipedia.org/wiki/Singur


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Competencies of Tata Nano Tata is now 57th most valuable brand globally livemint.com: April

22, 2008 The Tata groups intense activities in 2007 have seenit rising 45 places to No. 57 in Brand Finance Top 500 GlobalBrands

Expectations

According to one report, India as well as other nations, such as

European nations[, have great expectations from the Nano and arekeenly and eagerly eagerly awaiting it, especially the electric versionof the Nano.

Modular design

In fact, Tata envisions going even further, providing the tools for local

mechanics to assemble the car in existing auto shops or even in newgarages created to cater to remote rural customers. With the exceptionofManjeet Kripalani, BusinessWeek's India bureau chief, few have focusedon this breakthrough element of the Nano innovation (BusinessWeek.com,1/10/08).
http://www.livemint.com/2008/04/22000325/Tata-is-now-57th-most-valuable.htmlhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://www.livemint.com/2008/04/22000325/Tata-is-now-57th-most-valuable.html


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Competencies of Tata Nano Pricing strategy

Tata initially targeted the vehicle as "the least expensive productioncarin the world" aiming for a starting price of 100,000 rupees orapproximately $2300 US despite rapidly rising material prices

Export expectation

Being worlds cheapest car it is expected that not only India demand forNano will go rise at global level. Since it meeting Euro-4 norms at this priceso this is taking as a future of small car segment .

Reputation and Acceptance of Tata After launch

TATAs have shown the world what Indian engineering is truly capable of

Financial Times U K reports

Enthusiastic support

Tata Motors is receiving preliminary and some very enthusiasticsupport in the media and officials, even from Europe, for the electric-version from India as well as other-nations. The enthusiasm is evenhigher than that for the petrol-version
http://en.wikipedia.org/wiki/Production_carhttp://en.wikipedia.org/wiki/Production_carhttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Production_carhttp://en.wikipedia.org/wiki/Production_car


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Future of Nano (conclusion)

Emerging markets are a fertile ground for innovation. The challengeof reaching dispersed, low-income consumers in emerging marketsoften spurs significant innovation.

As customers gain more power, they will demand more tailoring andvalue-added service to meet their needs. Companies that innovate

on this dimension are likely to be richly rewarded. World is getting tougher day by day being unique is a competitive

advantage. Expectations to Nano has proved this .

After 100 years to Henry Ford , Tata has proved him again not onlyhe came out of the expectations but also came out with a platform

for Indian auto sector . So this as per this project conclusion can be draw as a

future car not only of Indian but also if exported thancould be to the world.


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Important questions ?

Will the Nano succeed?

Car of the Future?

Is it fair to blame the Nano for the(upcoming) ills of Indian roadinfrastructure?

What do you think? Is the Nano a carof the future? Or just another Yugodebacle waiting to happen? Would youdrive one?


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