“Because a

promise is a
promise”
A Case study on how Tata Nano was
developed.

Submitted By
Venu Gopal V
08PG0146
B-Section
CUIM.
Tata Nano
Reason for NANO spark:

Speaking at the unveiling ceremony

at the 9th Auto Expo in New Delhi,
Mr. Ratan N. Tata said, “I observed
families riding on two-wheelers – 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 whether
one could conceive of a safe, affordable, all-weather form of transport for
such a family. Tata Motors’ engineers and designers gave their all for about
four years to realize this goal. Today, we indeed have a People’s Car, which
is affordable and yet built to meet safety requirements and emission norms,
to be fuel efficient and low on emissions. We are happy to present the
People’s Car to India and we hope it brings the joy, pride and utility of
owning a car to many families who need personal mobility.”

Vision:

“The vision was to give the people of India a car which is not produced
anywhere else in the world. Through Nano, which denotes high technology
and small size, I have tried to provide a reliable mode of transport to every
Indian family,”
-Mr.Ratan Tata

Present Scenario:

Tata Nano was planned to be launched in September 2008, the first batch of
3000 cars was manufactured from the Tata Motors Pune plant, and a new
plant exclusively for Nano was planned in Singur, West-Bengal. But due to
the circumstances project was shifted to new location Sanand in Gujarat. The
2000 crore project will be now from the new location, the bookings of Nano
will start from last week of Feb-2009.
The mother plant, which will begin producing 2, 50,000 -3, 00,000 cars
per annum, has the capacity to expand its production to 5,00,000 cars in the
coming years. The Tata’s also have plans to build electric cars and CNG
variants from this plant. The Tata complex at Sanand will initially house 60
ancillary units.

The first batch of Nano will be rolled from 'makeshift' facilities located in Tata
Motors' existing factories in Pune and Pantnagar. Initial production volumes
will be lower because of the delay caused by the events at Singur.
Operations: Thinking outside the patent box

Tata Motors could make a car so inexpensive for the reasons that It started
by looking at everything from scratch, applying what some analysts have
described as 'Gandhian engineering' principles - deep frugality with a
willingness to challenge conventional wisdom. A lot of features that Western
consumers take for granted - air conditioning, power brakes, radios, etc – are
missing from the entry-level model.

More fundamentally, the engineers worked to do more with less. The

car is smaller in overall dimensions than the Maruti, but it offers about 20 per
cent more seating capacity as a result of design choices such as putting the
wheels at the extreme edges of the car.

The Nano is also much lighter than comparable models as a result of efforts
to reduce the amount of steel in the car (including the use of an aluminum
engine) and the use of lightweight steel where possible. The car currently
meets all Indian emission, pollution, and safety standards, though it only
attains a maximum speed of about 65 mph. The fuel efficiency is attractive -
50 miles to the gallon.

Hearing all this, many Western executives doubt that this new car represents
real innovation. Too often, when they think of innovation, they focus on
product innovation using breakthrough technologies; often, specifically, on
patents.

Tata Motors has filed for 34 patents associated with the design of the Nano,
which contrasts with the roughly 280 patents awarded to General Motors
every year. Admittedly that figure tallies all of GM's research efforts, but if
innovation is measured only in terms of patents, no wonder the Nano is not
of much interest to Western executives.

Measuring progress solely by patent creation misses a key dimension of

innovation: Some of the most valuable innovations take existing, patented
components and remix them in ways that more effectively serve the needs
of large numbers of customers

To summaries Tata were able to deliver the ultra low priced car as promised
for the reasons mentioned below,
 – The entire car was designed from the scratch keeping in mind of the
cost saving techniques.
– Profit on per car is minimal but the ROI is on the number of cars Tata
can sell.
– Tata were able to convince the vendors to give away some amount of
their profit margin to reduce the cost of the car, but assured them that
this won’t hit their overall revenue as the quantity of products would
be huge and the vendors would get it back by economies of scale.
– Tata asked vendors to locate close to the factory location as the
transportation cost could be minimal.

Features

Stylish, comfortable

The People's Car, designed with a family in mind, has a roomy passenger
compartment with generous leg space and head room. It can comfortably
seat four persons. Four doors with high seating position make ingress and
egress easy. Yet with a length of 3.1 metres, width of 1.5 metres and height
of 1.6 meters, with adequate ground clearance, it can effortlessly maneuver
on busy roads in cities as well as in rural areas. Its mono-volume design, with
wheels at the corners and the power train at the rear, enables it to uniquely
combine both space and maneuverability, which will set a new benchmark
among small cars. When launched, the car will be available in both standard
and deluxe versions. Both versions will offer a wide range of body colors and
other accessories so that the car can be customized to an individual's
preferences.

Fuel-efficient engine

The People's Car has a rear-wheel drive, all-aluminum, two-cylinder, 623 cc,
33 PS, multi point fuel injection petrol engine. This is the first time that a
two-cylinder gasoline engine is being used in a car with single balancer shaft.
The lean design strategy has helped minimize weight, which helps maximize
performance per unit of energy consumed and delivers high fuel efficiency.
Performance is controlled by a specially designed electronic engine
management system.

Meets all safety requirements

The People's Car's safety performance exceeds current regulatory

requirements. With an all sheet-metal body, it has a strong passenger
compartment, with safety features such as crumple zones, intrusion-resistant
doors, seat belts, strong seats and anchorages, and the rear tailgate glass
bonded to the body. Tubeless tyres further enhance safety.

Environment-friendly

The People's Car's tailpipe emission performance exceeds regulatory

requirements. In terms of overall pollutants, it has a lower pollution level
than two-wheelers being manufactured in India today. The high fuel
efficiency also ensures that the car has low carbon dioxide emissions,
thereby providing the twin benefits of an affordable transportation solution
with a low carbon footprint.