presentation on tata nano

8/14/2019 Presentation on Tata Nano

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Presentation

OnTata Nano


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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 these motivational wordssaid by India's former President Dr. A.P.J. Abdul Kalam goes exactly with Mr.Ratan Tata, Chairman of Tata group, who in the year 2003, dreamt ofproducing a safe, affordable Car for the common man. Finally after the wait offive years, crossing all financial and technological barriers, Ratan Tata kept hispromise and unveiled Tata 'Nano' on 10th January 2007, at the 9th Auto Expo

2008 in New Delhi. Tata Nano, cool & smart, launched by Tata Motors isworld's cheapest Car with a price tag of $ 2500.


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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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What makes it so cheap !

The Tata Nano uses plastics and adhesives ratherthan 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 the world in termsof car production and 13th in terms of commercial vehicle production, which includesboth 2-wheelers and 4-wheelers. At the same time, the Indian car makers are earningacclaim worldwide.

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

India is being recognized as potential emerging auto market. Foreign players are adding to theirinvestments 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%). Tata Motorsdominates 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-wheeler manufacturer

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 Automobile Industry. Indianauto industry, which is currently growing at the pace of around 18 % perannum, has become a hot destination for global auto players like Volvo,General Motors and Ford.

In India there are 100 people per vehicle, while this figure is 82 in China. It isexpected that Indian automobile industry will achieve mass motorization statusby 2014.

The passenger vehicle industry also witnessed a slowdown but managed togrow by 11.1% by increasing discounts on mature products, launching newmodels and due to reduction in excise duty announced by the government inBudget during February08.

Vehicle exports also grew, albeit at a slightly lower rate of 11.9% as comparedto 14.8% witnessed in the previous year

The domestic commercial vehicle industry grew by 6.9% as compared to over33% 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 timeThe 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.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://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 industries hoping to locate

here, including Infosys, a software maker that wanted to build a business parkthat would provide 5,000 jobs.

Due to ongoing opposition to Tata's Singurcar-factory by Mamta Banerjee, whodemanded land to be returned from the factory, Tata Motors took decision to pull

out of Singur. Tata Motors is manufacturing Tata Nano at its Pantnagarplant. Tata Motors announced it was pulling out its Nano small car industrial project

from West Bengal's Singur and blamed the Mamata Banerjee-led TrinamoolCongress, which spearheaded the protests against the factory, for the 'painful'decision.

While existence of Tata Nano could lead to high industrial growth , the exit leadwest Bengal a loss of more than 80,000 crore .How ever Tata has to suffer interms 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/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/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 seen it rising 45 places toNo. 57 in Brand Finance Top 500 Global Brands

Expectations

According to one report, India as well as other nations, such as Europeannations[, have great expectations from the Nano and are keenly and eagerlyeagerly awaiting it, especially the electric version of 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 new garages created to cater

to remote rural customers. With the exception ofManjeet Kripalani, BusinessWeek'sIndia bureau chief, few have focused on this breakthrough element of the Nanoinnovation (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 production carin 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 for Nano will

go rise at global level. Since it meeting Euro-4 norms at this price so this is takingas 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 enthusiastic support

in the media and officials, even from Europe, for the electric-version fromIndia as well as other-nations. The enthusiasm is even higher than thatfor the petrol-version
http://en.wikipedia.org/wiki/Production_carhttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Production_car


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Future of Nano (conclusion)

Emerging markets are a fertile ground for innovation. The challenge of reachingdispersed, low-income consumers in emerging markets often spurs significant innovation.

As customers gain more power, they will demand more tailoring and value-added serviceto meet their needs. Companies that innovate on this dimension are likely to be richlyrewarded.

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 only he came out of theexpectations 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 onlyof Indian but also if exported than could 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 road

infrastructure?

What do you think? Is the Nano a carof the future? Or just another Yugo

debacle waiting to happen? Would you

drive one?


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Thank you

presentation on tata nano

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