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History-TATA Nano
Seeing an opportunity in the great number of Indian families with two-wheeled rather than four-wheeled vehicles, Tata Motors began development of an affordable car in 2003.The purchase price of this no frills auto was brought down by dispensing with most nonessential features, reducing the amount of steel used in its construction, and relying on low-cost Indian labor. The introduction of the Nano received much media attention due to its low price, and the car was available to buy throughout India in early 2011.
VISION
To develop TATA into a world class Indian car brand for innovative and superior value vehicles
Mission
To be the most admired multi-national Indian company producing vehicles that people love to buy To create an organization that people enjoy working for doing business with and investing in
I saw families ridding around on scooters with kids standing up and mother carrying a baby and sitting Pillion and decided to do something about . It started as an quest for an affordable transportation solutions. .
SWOT Analysis
Opportunities
Bikers can be motivated Auto rickshaw & second hand market
Threats
Other competitors
Traffic Congestion
New Regualtions
Tata Nano
Manufacturer Also called Production Assembly Class Body style Layout Engine Transmission Wheelbase Length Width Tata Motors one-lakh car 2008present Pantnagar, Uttarkhand, India[ Charodi, Gujarat, India (since June 2010) City car 4-door RR layout 2 cylinder SOHC petrol Bosch multi-point fuel injection (single injector) allaluminium 624 cc (38 cu in) 4 speed synchromesh withoverdrive in 4th 2,230 mm (87.8 in)[3] 3,099 mm (122.0 in)[3] 1,495 mm (58.9 in)[3]
Height
Kerb weight Designer
Design
The car's exterior was designed at Italy's Institute of Development in Automotive Engineering.
The Nano is thought to have affected the used car market in India, as some Indians may opt to buy a Nano rather than a used vehicle. The new-car market is also being affected. Sales of new Maruti 800s, the second-cheapest car in India, dropped by 20% and used models by 30% immediately prior to the Nano's
Strategy
Time honored International strategy Effectively used parliamentary politics as business strategy Politics shaping Nanos future Earlier less reliance on states
Considered government as a regulator Ratan Tata changed the groups Attitutde Involved the state as partner Relationship between state and group improved
TML intending to set manufacturing plant Considered locating plants in various states Accurate understanding of : Political interests Compulsion of State Government
Contd..
Exploited such weakness to its advantage Incentive package in Uttarakhand/Himachal Pradesh a)100% exemption from excise duty for 10 years b)100% exemption from Corporate Income tax WB out of desperation walked into the trap
Singur - Tata
Govt. WB keen for rapid industrialisation Approached Tata Motors Tata Motors showed interest in locating the plant in WB Chose Singur a small town in Hoogly district of WB Govt. WB provided TML a loan of 200 crores at 1% interest
A comprehensive package of incentives Electricity Clause Electricity at Rs.3kwh Loan Repayment Loan with interest repayable in annual installments Lease rental
Land Controversy
Acquired Land Compensation Misunderstanding Admitted Mistake
FRONT LINE ,Volume 25 - Issue 22 :: Oct. 25-Nov. 07, 2008. INDIA'S NATIONAL MAGAZINE
Vibrant Gujrat
Reliable Infrastructure Locations - Government owned land Charodi and Chharal villages in Sanand the ultimate choice
Benefits to
Loan of Rs 9,570 crores
THE DEAL
THE SWEETNERS
100% exemption on electricity duty Concessional power tariff 1,100 acre land comes cheap No stamp duty, Registration and transfer charges Payment for land in 8 equal annual instalments
Benefits to Gujarat
Benefits to Component manufacturers and Vendors New Investment opportunities and positive sentiment in Gujarat Benefit to Real estate market Additional jobs and training opportunities
Thank You