Case Study on Tata Nano (PDF)

Case Study on Tata Nano
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Answer: One
Tata Motors Chairman Ratan Tata was enlivened to construct the Nano when he noticed families
in India who travel along with upwards of four individuals on a bike where the dad would drive,
the child remaining before him while the mother sits behind him with a child. Ratan Tata needed
to assemble a vehicle that would securely move families where they need to go with a reasonable
cost. The vehicle was the consequence of an impossible — however open — guarantee that the
organization's chief made in 2003, setting to work a group of specialists accused of reconsidering
how vehicles could be planned and made. Goodbye had declared how modest their organization
could make this vehicle to columnists and utilized $2,500 for instance. This was never a clear
figure however the following day the cost stood out as truly newsworthy. Goodbye utilized this
as a test and inspiration for his workers to be effective with the Nano.
There are more than one billion individuals in India yet just a single million vehicles were sold in
2007. The requirement for an economical vehicle in India is fundamental on the grounds that the
working class just make around $6,000 every year. This opens up a totally new market of "lower
part of the pyramid" individuals who could turn out to be new drivers. Goodbye accepts that they
could expand the pool of auto proprietors by 65%.
Answer: Two
Tata has stopped creation of the Nano as showcasing blunders and a helpless security record
neglected to tempt buyers. In 2009 Tata Motors dispatched its achievement Nano vehicle brand,
advertised as the least expensive vehicle on the planet. This at last made interest in the vehicle
come up short as an inexorably brand cognizant Indian working class scorned the Nano for all
the more very good quality brands. Worries over wellbeing likewise heightened throughout the
long term which additionally diminished interest among lower pay portions. In spite of
introductory positive thinking from Indian purchasers who pre-requested 200,000 units of the
Nano, deals after the vehicle's dispatch were far underneath Tata's assumptions. In November
2010 the organization sold only 509 Nano's. By June 2018 this figure had tumbled down to a
simple three driving the organization to stop creation. The significant piece of fault for the
Nano's disappointment can be sourced back to Tata's helpless showcasing procedure which had
the Nano bound upon its delivery. In mid-2008 when the Nano was first uncovered to the general
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