Essay on Tata Nano Case Study

1400 Words Nov 30th, 2010 6 Pages
CASE STUDY ON TATA NANO

TATA MOTORS HAS UNVEILED THE WORLD'S CHEAPEST MOTOR NANO CAR

The case discusses the making of Tata Nano, the world's cheapest car, manufactured by India based Tata Motors. On March 30, 2009, Tata Nano was launched with an ex-factory price tag of INR 100,000 (about US$ 2000). The case explains the design and development process of TataNano. The car was the result of a five year research and development project carried out by Tata Nano development team. While developing the car, Tata Motors and its suppliers constantly made efforts to reduce the costs while ensuring quality of each and every component including engine, steering, wheels, tires, windshield washing system, gear shifter etc.

THE MAKING OF TATA
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 Tata Nano described as “Gandhian engineering principles” where the air conditioning, power brakes, radios, etc.—are missing for entry level model to reduce the cost.  Tata aims to set up plants in four locations in the country to save transportation costs.  Nano’s modular design is constructed of components that can be built and shipped separately to be assembled in a variety of locations.  Outsourcing taken up in a big way.

 Car promotes open distribution i.e. it mobilises large number of third parties to reach remote rural consumers, tailor products and services to more effectively serve their needs and add value to the core product through ancillary services.

STRATEGIES BY TATA MOTORS
TATA MOTORS MAKE A CAR SO INEXPENSIVELY
 The car is smaller in overall dimensions than the Maruti, but it offers about 20% more

seating capacity as a result of design choices such as putting the wheels at the extreme edges of the car
 The Nano is also much lighter than comparable models as a result of efforts to reduce the

amount of steel in the car including the use of an aluminium engine and the use of lightweight steel where possible  Tata Nano described as “Gandhian engineering principles” where the air conditioning, power

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