Download Ind Mkt. Caselet 1 PDF

TitleInd Mkt. Caselet 1
Tags Horsepower Motor Vehicle Automotive Technologies Fuel Injection
File Size183.3 KB
Total Pages6
Document Text Contents
Page 1


Tata Nano: ‘An excellent example of supply chain management’

During the first inauguration of Nano Car, Ratan Tata famously spoke these words observed families

riding 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

Hence, started the conceptualization of a car targeted at the low

income segment of India who could not afford a car. It is a typical example of identifying a need, developing

and marketing the product to the targeted segment and enjoying the success of a well-crafted marketing effort.

It is no surprise then, that the little car also dubbed as the attracted much fanfare from the media

across the world. The demand for the car could not be met initially, as the Sanand plant working full

capacity. The cars had to be booked in advance. After a rocky start at its West Bengal Singur plant, the

production of Nano was shifted to Sanand, Gujarat. This delayed the launch and also put a tab on the production


The car comes in standard, CX and LX versions. The price of the standard version falls in the Rs 1 lac bracket

(excluding VAT and transportation cost). The car was conceptualized to cater to a segment who earlier could

not afford a car due to its high price. Nano is in every sense a revolution in innovation aimed at serving the

lower class market.

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

Cost-cutting features

The Nano's design implements many measures to reduce manufacturing costs.

Comparison with the Maruti 800, the Tata Nano's closest competitor:

Tata Nano Maruti 800

* The Nano's trunk is only accessible from inside the

car, as the rear hatch does not open.

* Maruti 800 initially had only an opening rear-

windscreen, but later got a full hatchback.

* One windscreen wiper instead of the usual pair (also

seen earlier on certain Citroen and Mercedes models)
* Two windscreen wipers.

* No power steering initially, unnecessary due to its

light weight.
Added in higher variants in later models.

* Power Steering only in higher variants.

Page 4

Body and


Seat belt: 4

Trunk capacity: 150 L (5.3 cu ft)


Tires &


Front brake: 180 mm drum

Rear brake: 180 mm drum

Front track: 1,325 mm (52.2 in)

Rear track: 1,315 mm (51.8 in)

Ground clearance: 180 mm (7.1 in)

Front suspension: MacPherson strut with lower A arm

Rear suspension: Independent coil spring

12-inch wheels

Tata motors being the countries largest automobile company (commercial and passenger vehicles combined),

has been a pioneer in the automobile industry in more ways than one. It being the first company in the

engineering sector listed at the New York Stock Exchange. Tata Indica was the first indigenous

passenger car built in 1998.

Suppliers and Parts

Supplier Part/system

Texspin Clutch Bearings

Oxygen sensor, Gasoline injection system (diesel will follow), starter, alternator, brake


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