Tata motors, launched their long awaited one lakh rupee car in india named tata nano it became the worlds cheapest car. Although the tata nano will only earn a small profit on manufacturing the cars, they still continue what they had promised. The story of tata nano a different perspective techhoot. In january 2008, the company unveiled its peoples car, the tata nano, which india and the world have been looking forward to. Tata motors is committed to improving the quality of life of communities by. There is something wrong with the way tata has done its marketing. They include sophisticated robotics and high speed production lines. Tata nano sweeping change4 tata nano, the new model introduced by tata motors, hailed as the peoples car, is an amazingly cheap car. The vision was to give the people of india a car which is not produced anywhere else in the world. The car has been widely publicized as the worlds cheapest car at rs.
Thus, the lean manufacturing process is sometimes also referred to as the toyota production system. Operation and supply chain management on tata motors. Tata nano is a product of the parent company tata motors and built with the intention of manufacturing and selling in india. Apr 27, 2014 new product devlopment process of tata nano 1. The nano car used the cost advantage through tight cost control, the process of engineering skills and process innovation. Through nano, which denotes high technology and small size. Ratan tata kept his promise and delivered the nano almost at its target price, forcing global car makers to take challenge. Nano diamond, boron tubes, single elecnitride nanotron transistors, molecular machine, nano biometrics, nano robots. Sanand plant is a passenger vehicles manufacturing facility located in sanand, gujarat, india, and manufactured the worlds cheapest car, the tata nano. Fulfilling the promise of indias manufacturing sector mckinsey. Tata nano is a dream comes true for an average indian. Tsmg works closely with the chairmans office and the leadership of tata group companies to develop and support implementation of the groups business strategy.
When theres heavy work to be done, robots lend employees a helping hand. Tata motors leverages upon social media marketing to target customers based on the search results. From its price to its engineering, design, manufacturing. Tata nano should expand its market to other world region, the priority region that tata nano should consider is in asia pacific. Tata motors has nearly 630 dealerships across the country. Conscious of the critical need of environment protection, the plant has energyefficient motors, variable frequency drives, and systems to measure. Nearly everything has been sourced locally and the nano will have 97% local content from day one. Join the team, that sets benchmark every day for production. There are several potential areas in a production chain, where an organisation. Tata motor plans to launch a cng bi fuel and diesel variants in early 20, making tata nano one of the most fuel efficient vehicles in the world. Nano structures of carbon fullerene, fabrication, structure.
Ratan tata interview i nano in pics i auto expo in pics. Over the last one year, the nanos production numbers have fallen steadily with decreasing demand. Analyzing the tata nano supply chain through the lens of this framework. Tata nano saw an incredible amount of sales in the following year. The case of the tata nano allows elaborating upon the potentials and risks of valuesbased innovation through a longitudinal analysis of three stages process. Tata nano the tata nano is a small car manufactured by tata motors made and sold in india. The company had manufacturing plants in the indian cities of jamshedpur, pune, and.
It is one of the biggest industrial groups in the country, founded. Tata motors is a leader in manufacturing of commercial, passenger, military and electric vehicles. The tata nano lessons and issues in project management. Special issue strategic cost management through target. How the peoples car failed to reshape the auto industry and create new growth.
Working up to cim and lean production steps to cim 1. Sixtysix percent of the equity share capital of tata sons is held by philanthropic trusts, which support education, health, livelihood generation and art and culture. Designed to lure indias burgeoning middle classes away from twowheelers, it received much publicity. The car was the result of a five year research and development project carried out by tata nano development team. The tata nano isnt as cheap in terms of price as it was envisioned to be, but it is definitely one of its kind. Homegrown carmaker tata motors launched indias most affordable car, the tata nano almost 10 years back and was the brain child of chairman emeritus tata sons, ratan tata. There is a possibility that selling to the bottom of. The present stud y is based on the awareness of tata na no cars among the customers. The creation of tata nano is a result of innovation leading to new market creation to tap latent opportunities lying at the bottom of the pyramid in the automobile, four wheeler segment. With the increasing threats, there are plans underway to move tata nano forward. The company will produce a readytobuild version of the car that can be distributed in kits. 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. This case and the accompanying threepart theorybased movie describe tata motors strategic move to create and launch the tata nano and the successes and setbacks of the tata nano team in actualizing this.
Nearly everything has been sourced locally and the. Special issue strategic cost management through target costing. Car satisfies the need of owners for transportation they also obtain psychological satisfaction from the possession of products like a car keeping in mind tata motors unveiled its peoples car, the tata nano, which india and the world have been looking forward to. Oct 02, 2017 the tata nano isnt as cheap in terms of price as it was envisioned to be, but it is definitely one of its kind.
Tata nano has an apt tag line peoplescar and this concept has led to its popularity in the indian automobile market. Founded in 1868 by jamsetji tata, the company gained international recognition after purchasing several global companies. In november, while overall auto sales in indias booming economy rose more than 22%, tata sold only. The critics initially derived the concept mainly on the basis of the price target. Jan 11, 2011 its been a rough season for tata motors muchpublicized peoples car, the nano. One of indias largest conglomerates, tata group is owned by tata sons. Indias largest integrated vehicle manufacturer, echoed similar observations about the. Heat treatment is also done for gears and other parts. Tata motors limited is incorporated and domiciled in india. According to tata motors, poor sales figures of nano is the main reason behind the huge loss. A cost management system is a management control and planning system with the primary objective of producing quality goods and services at the lowest. As part of the tata group, tata motors has been a strong part of the indian history. So much so that in october, the production numbers of tata nano stood at an abysmal average of two cars a day at its sanand plant. The strategy for components and systems designed in house, tata motors chose suppliers with strong process capabilities who could give valuable suggestions and improve on the designs.
Tata strategic management group tsmg is the strategy centre of excellence for the tata group. Chapter 2 chapter 2 the tata nano makes history using. This has been ratan tatas answer to the middle class familys quest of an affordable car. Figure 81 process flow for five pillar supply chain framework. The powertrain was a 624cc sohc petrol, rear engine and rearwheel car with a manual gearbox that gave a very commendable 25 kilometers per liter. A study on tata nano directions for future research similar studies can be carried out that can help in comparative analysis of different products targeted at the bottom of the pyramid. Special issue strategic cost management through target costing a case study of tata nano strategic cost management is an integral part of profit planning and total management of enterprises. We use excellent innovative technologies ensuring our assembly lines delight the end customer. The case discusses the making of tata nano, the worlds cheapest car, manufactured by india based tata motors. The automotive vehicle business commenced with the manufacture of commercial vehicles under financial. Tushman and nadler 1986, defined innovation as process that generate creative products services or production processes for a particular business. Electrical, mechanical and vibrational properties and applications. They got 100% exemption on electricity duty the 1100 crores land has been given with high subsidies without any stamp duty registration and transfer charges the payment for land would be made in eight equal annual.
Nano diamond, boron tubes, single elecnitride nanotron transistors, molecular machine, nanobiometrics, nano robots. Jan 03, 2017 should tata stop the production of tata nano. A number of things contributed to the tata nanos failure. But a lot of people in india do not prefer buying nano because it has been placed as a cheapest car in india. In line with latest worldclass manufacturing practices, the tata nano plant has been equipped with stateoftheart equipment. According to tata, nano has a roomy passenger compartment with generous leg space and head room, and it can comfortably seat four persons. The car was the result of a five year research and development. The nano team managed so well because its a nice mix of people of all age groups and passionate about cars. In january 2008, the company unveiled its peoples car, the tata nano, which india and. Parekh institute of management studies amreli 1 npd process of tata nano 2. The lcc market was already wellestablished tata motors is the first company to produce an ulcc product to the market replacement of the traditional motorcycle competitive advantage the company competitive advantages.
The manufacturing process of tata motors based on 5 shops such as, machine shop transaxle where exhaust manifold, intake manifold, gear box casting, gear are produced in machine shop. Our 201617 report highlights the performance of tata motors limited, india operations located at. Tata motors plant for the tata nano at sanand, located in the ahmedabad district of gujarat. But, lets first look at the small car itself the specifications. Tata motors limited is a leading automobile company in india, with consolidated revenues of usd 32.
Should tata motors stop the production of the tata nano. Tata strategic management group tata industries tata group. Chapter 2 the tata nano makes history using digital manufacturing problem. Some facts about tata nano a fair share of indias twowheeler owners about 12 million get purchased a year who were expected to upgrade to a nano failed to turn up at tata motors showrooms. The tata nano project making of the worlds cheapest car. With the factory output increasing from 30,000 to 70,432 to 74,52 in the year 2008, 2009 and 2011 respectively nano was on its way to success. Marketing mix of tata nano tata nano marketing mix and 4 ps. Tata sons is the principal investment holding company and promoter of tata companies. Tsmg also helps tata companies in developing and incubating new business ideas. The asian bottom of pyramid population consists of 2. Tata has already revealed tata tiago, which shows good response and figure. Outdated manufacturing processes, timeconsuming manual labour solutions. Its been a rough season for tata motors muchpublicized peoples car, the nano. Jan 30, 2014 the strategy for components and systems designed in house, tata motors chose suppliers with strong process capabilities who could give valuable suggestions and improve on the designs.
But, the fourdoor hatchbacks key selling point was its price. The tata brand is considered a trusted brand hence it uses the same to tap on the customers. Nov 27, 2017 over the last one year, the nano s production numbers have fallen steadily with decreasing demand. According to a report in bloomberg, the company has stopped the production of the nano hatchback as a result of poor sales and decline in demand for a cheap car. With help and training from tata, groups of entrepreneurs could buy the kits and assemble the cars themselves, creating new businesses across india my idea of. With many successful launches of both commercial and passenger vehicles such as tata 407s, tata sumo and tata indica, tata motors finally decided to launch a passenger vehicle that will set a new trend of easily affordable passenger vehicle the nano. Jun 02, 2010 in line with latest worldclass manufacturing practices, the tata nano plant has been equipped with state of theart equipment. Tata motors partnership with the gujarat state government to improve the skills of local workers, for example, helped the company to ameliorate concerns about the displacement of residents by the construction of a tata nano car factory, while giving the company access to new workers. The case explains the design and development process of tata nano. It fits into the lower end of the hatchback spectrum, but you cant directly compare it to cars like maruti suzuki alto 800, renault. The chapter presents a brief profile of the tata motors india ltd.