The ONE lakh Car that drives ONE billion Dreams…

TATA NANO

SWOT ANALYSIS OF TATA NANO

IDEA GENERATION

“I saw families riding around on scooters with kids standing up and the mother carrying a baby and sitting pillion and decided to do something about it. It started as a quest for an affordable transportation solution”.

RATAN TATA

source:- Business standard

TARGET MARKET

Lower and Middle Class Families

ECONOMIC FACTOR OF NANO OPPORTUNITY• The car itself is expected to boost the Indian Economy, create entrepreneurial-opportunities across India, as well as expand the Indian car market by 65%.

• Per Capita income Rs. 38000 (2008) from Rs. 1000 (2002) induces a higher purchasing power.

• The Nano's low purchase and running cost, the more its demand will be for the markets into which it will be introduced, the more it will be bought.

• Nano is sure to cut into bigger car companies' sales in India and other developing markets.• Generally companies target only the 10% rich population of the country but Nano has target a 72% of the population wh o are lower class and middle class level.

THREAT• Increase in the Steel price Increases the cost

Domestic market share in 2006-07

Two WheelerCommercial vehicle Passenger Ve-hicleThree Wheeler

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08E

2008-09E

2009-10E

2010-11E

2011-12E

0

10000

20000

30000

40000

50000

60000

70000

Rapid expansion in addressable households

Rapid expansion in addressable households

Source: Crisil Report, 2008

POLITICAL INFLUENCE ON TATA NANO

THREAT• Political controversy may difficult to stick

on 1 lakh price

• Farmer escalate the protest in singur.

• Block roads across the Singur on Aug.29 for demand the return of 400 acres land.

CONTINUE

OPPORTUNITY• Gujarat government said that 1,000 acres of land

would be given to the Tata Motors.

• Tata Motors will produce 2.5 lakh cars annually in Gujarat; the capacity can go up to 5 lakh cars per annum.

• A loan of Rs. 9750 Crore & that too at an amazingly soft at 0.1% simple rate of interest.

• Repayment of this loan @ 0.1% over 20 years.

• They got 100% exemption on electricity duty.

TECHNOLOGY IN TATA NANO

OPPORTUNITY• The project to create the world's cheapest car. • Inspired by the number of Indian families with two-wheeled

rather than four-wheeled transport.• In fact, Tata envisions going even further, providing the tools for

local mechanics to assemble the car in existing auto shops or even in new garages created to cater to remote rural customers.

• Significantly cheaper than existing Technology.• Has greater functionality and• Is more convenient to Use.• Brings to market a totally different Value proposition than the

one available and can change the Paradigm about a product.

COMPETITORS OF TATA NANO

OPPORTUNITY• Till now, It is the only low cost first car which is

Launched.

THREAT• Mahindra launhes Renult Yuni cost Rs. 130000.• Bajaj Auto, the country's second biggest two-

wheeler maker, comes after 4 year.• Other Indirect Competitors are Two Wheeler

and Second hand Vehicle market.

Porters five force model of NANO Car

Suppliers: Bosch, Caparo, Continental,Delphi, Denso, Fag, Ficosa,

Freudenburg, GKN, Saint Gobain, Johnson

Controls, INA

Customer

New Enterant: Mahindra Renult Yuni

Sibling rivals: Second hand Cars, Maruti 800

Substitute: Auto rickshaw, Two Wheelers

CONSUMER CHOICE DECISION

OPPORTUNITY It is the Cheapest car in the world.Because of its stylish and its price look more number of

people will shift toward Tata nano than a Maruti 800.

THREAT Nano is made only to ride in the city and only four

people can sit the car.

GRAPH SHOWING THE CONSUMER WILL PURCHASE

THE NANO OR NOT

Source: Crisil Report, 2008

LEGAL FACTORS

STRENGTH• Exceeds Indian regulatory requirements and can meet

strict Euro IV emission standards.

• In terms of overall pollutants, Tata says the car is better than two-wheelers manufactured in India currently.

PRODUCT 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

• The Tata Nano uses plastics and adhesives rather than welding.

• partially using inexpensive polymers or biodegradable plastics instead of a full metal-body. • Engine Capacity Bosch 624 c.c. twin cylinder.

• Low capacity, Lighter, sufficient with better Power Rear Engine to reduce the transmission length using a balancer shaft.

• Superb control over emission and smooth acceleration.

• Less length but more inner cabin space due to height and Comfortable leg room.

• Single Wiper in place of two.

• Tube less Tyres.

• Elegant to look at and can be used both in Left Hand & Right hand version.

ddd Nano CX Nano LX Maruti 800 Std

Maruti 800 AC Alto Alto LX Alto Lxi Santro

Non-AC Santro GL Santro GLS

Airconditioner - - -

Heater - - -

Front Power Windows - - - - - - - -

Central Locking - - - - - - - -

Body Colored Bumpers - - - - - - - -

Body Colored Door Handles & ORVM - - - - - - - - -

Front & Rear Fog Lamps - - - - - - - - -

Tinted Glasses - - -

Digital Fuel Gauge* - - - - - - - -

Tubeless Tyres* - - - - - - - -

* Features available in all three versions of Nano

COMPARISON OF SMALL CAR

PRICE FACTORSTRENGTH• Tata initially targeted the vehicle as "the least expensive production car in the world" — aiming for a starting price of 100,000 rupees or approximately $2000 US despite rapidly rising material prices.

• As of August 2008, material costs have risen from 13% to 23% over the car’s development,and Tata now faces the choice of:introducing the car with an artificially low price through govt subsidies and tax-breaks, or foregoing profit on the car, or using vertical-integration, or partially using inexpensive polymers or biodegradable plastics instead of a full metal-body, or raising the price of the car.

WEAKNESS• An increased price on the Nano will likely decrease demand.

Cars Nano Maruti 800

Chevrolet Spark

Maruti Alto

Hyundai Santro

Price 1.3 lakh 2.30 lakh 2.61 lakh 2.35 lakh 2.40 lakh

Comparison of Price Differenciation in Small car

POSITION OF TATA NANO

OPPORTUNITY Its low price. And people get all facilities in affordable price.

Its look very attractive and available in many colour.

Its 20% more species then other low price car in India.

After buying nano company serve all facilities through his own service centre.

Company provide direct car loan facilities through your nearest bank like SBI. United bank of India and many more.

THREAT

It’s a Low status symbol car.

DISTRIBUTION OF TATA NANO

STRENGTH Tata Motors and Fiat are also jointly building a factory

Ranjangaon in Maharashtra. TML Distribution Co. Ltd, which was incorporated on 28 March,

according to the company’s latest annual report. Tata Motors may outsource distribution to a new unit. TATA Motor has n-numbers of showroom in indiaWEAKNESS It is not able to deliver the nano on time as there is a delay in

production of car.

CUSTOMER RELATIONSHIP MANAGEMENT

STRENGTH

Easy availability of spare parts.

Efficient collection of data from field and communication to

the respective plants.

Pan India presence, as well as global presence.

Large network of workshops – Dealer workshops and TASS.

Training facilities – for dealer end and TASS personnel.

THANK YOU

AVANI VERMAROLL NO. 11KUNJ NAGARIAROLL NO. 38