Tata Nano :

The Peoples car that promises to

reconstruct the Automobile Industry
Nagender Singh Yadav
S-46
Source: INSEAD: Blue Ocean Strategy Institute
Author Introduction
This case written by Dr. Robert Bong & Dr. Mi
Ji both professor of strategy at INSEA (The
business school, Blue Ocean Strategy Institute)
Robert Bong
Dr. Ji Mi
Author Introduction
Robert Bong (Singapore)
Domain of
expertise:
China, India, Indonesia and Malaysia. Public Private Partnership,
Entrepreneurship & Start-up, Education and Technology & IT Services
Advisory
Dr Robert Bong, currently the Chief Advisor of the Malaysia Blue Ocean Strategy
Institute (MBOSI); a public policy advisory and public private partnership (PPP)
consulting firm, is former Chief Executive Officer, Managing Director and Director of
a number of publicly listed companies, and Rector/Vice Chancellor/Chief Executive
of universities, has close to 40 years of global experience in corporate leadership in
USA, India, China and the ASEAN countries.
Author Introduction
Domain of
expertise:
Consultant for Blue Ocean Strategy
Dr. Ji Mi is currently an Institute Executive Fellow at the INSEAD Blue Ocean Strategy
Institute (IBOSI) in Fontainebleau, France. She began to work for the authors of Blue
Ocean Strategy W. Chan Kim and Rene Mauborgne in 2001 and was the official
translator of the Chinese version of the book, which topped the bestseller list and won
numerous awards in China. Mi holds a Ph.D. in Government from Cornell University, an
MBA from INSEAD, and a B.A. from China Foreign Affairs University.
Before joining the IBOSI, Mi was a professor of International Political Economy at the
School of International Studies, Peking University.
Dr. Ji Mi
The TATA Group : Company History
Founded by Jamsetji Tata in 1868 as trading
company
First steel mill, power utility, luxury hotel and
international airline
By 2011, 98 companies over 7 sectors.
Company seen as Inspired trust & a strong
commitment to ethics
By TATA Code of Conduct, TATA promised to
improve the quality of life and Nano is a prime
example.
The Dream
I observed families
riding on two-wheeler
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 for such a car
which is safe & affordable
to any middle class family.


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 words
said 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, introduce a
affordable car for the common people. Innovatively planning to form one
more series of Nano Dc.
The Nano Dc has created a completely new category and continues to innovate
in line with the evolution of the market.
The awesome spirit of the Nano Dc - of living life on your own terms - is
depicted through the colourful world of Nano Dc and the people in this world
who share the brand's unique attitude - to do things bigger, better, and
differently.

The automotive industry in india
Automobile industry flourished with an average growth rate
of 17 percent annually post liberaliszation
In 2009 industry produced more than 11 million vehichles


Case Time Line
The Dream (Idea)
2002
Tata Nano Unveiled at
AutoExpo, New Delhi
2008
Tata Nano Commercial
launched
2009
Advantages of Nano
Comparison of Nano with Maruti 800

Nano was 4% Wider
14% Taller
21% more interior space, Weight only 600 Kgs
Lowerst Carbon Emission (101grams/Kg)

Tata Nano was conceived to appeal to vast
population of 2-Wheeler owner which were
neglected by automobile Industry
Aim to provide
Safe
Comfortable
Reliable
Economical
Decent
Cost Innovation
Electronic Control Unit (ECU) have 1700
parameter as compared to average 5500
No seat Frame, 3 Fixed Position
Door Handles designed with 70% fewer parts
Low Cost Wheel Alloy
Fuel Inlet Cap was placed under the nose of
car to avoid need to cut hole in body
No need for power steering
Challenges
Upward revision of raw material cost in year
2008 in range from 40% to 200%
Aggitation by locals of place where plan is
located (Singur, West Bengal)
Rs. 15,000,000,000 was spend
Tata is forced to shift to Sanand in Gujrat
Undertook 75% of relocation cost of ancillary
manufactures
Challenges
As against the prediction of 20K to 25K Nanos
per month there were only 10,475 per month
Perception of Cheapest Car in place of Peoples
Car, Stigma attached with cheap car

22 January 2014 ISTE VESIT maximus 16
RELAUNCHING


22 January 2014 ISTE VESIT maximus 17
Problem 1- Price is the Identity
22 January 2014 ISTE VESIT maximus 18
Introducing New Engine