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New product Development
TATA Nano
Mahesh-A-Kapse
Idea Screening
Option to make a scooter with two extra
wheels at the back for better stability.
A three wheeled car like a closed auto-
rickshaw.
Concept testing and
development
People wanted a four wheeler which was cheap, dependable and strong enough to carry a load of 1 ton.
It must be meeting all the safety and regulatory requirement.
Each engineer represented a different part of the car: engine and transmission, body, vehicle integration, safety and regulation, and industrial design
over six feet can also fit into the car without any discomfort
Business Analysis
Cost
COST REDUCTION PARADIGM: Value
Engineering Alternatives
Establish factory in a tax free zone.
Get the tax advantages on infrastructure development.
Get the suppliers to establish base near the factory.
Get special concessions from State Govt. In short
select a manufacturing location where all the
advantages could be achieved
TOTAL SALES ESTIMATION
Estimated demand would be twice the demand of
Maruti Suzuki 800.
Initial projections were at about 500,000 cars per year.
Only 10% customers of 9 Million two wheeler market transit to 4-wheelers it shall amount to 50% of the passenger car market share.
CHALLENGES FACED DURING THE
DEVELOPMENT OF TATA NANO
Question of Safety
Mass Motorisation
Used car market effect
Cases of fire
Competitors
Cost cutting features
No Radio, Power windows, anti lock brakes, air
bags, remote locks or power steering.
Rear wheel drive.
Analogue speedometer, odometer and fuel gauge.
Single windscreen wiper.
Three lug nuts on the wheels instead of the usual four.
Radio or CD player is optional.
No airbags on any model.
624cc rear engine has only 2 cylinder
Comparison OF Tata NANO with motor bike and
Maruti Suzuki 800
Maruti 800 Tata Nano bike Engine
796 cc 623 cc 100 cc
Price(OTR)
Rs 225,000 Rs 120,000(88%) Rs.45,000
Down Payments
Rs 10,000 Rs 10,000 Rs 5000
EMI(60m)
Rs 3583 Rs 1833(95%) Rs 667
Kmpl
15kms 20kms 50kms
Making of TATA Nano
The mission began back in 2003
Team led by 32-year-old star engineer Girish Wagh
The suppliers
Germany's Bosch
GKN Driveline India
Engineers- team grew to comprise some 500
engineers.
Changed the engine designs three times.
SWOT analysis of TATA Nano
Strengths Weaknesses
Price 20 – 50% higher then the proposed rates
Small size Technical problems
Ease in handling Nano catching fire
Good mileage efficiency Political problems
convenience to drive in metro traffic
Opportunities Threats
convenience to drive in metro traffic. Alternatives by competitors
younger generation Chevy Spark
Structural safety tests
Its first basic structural safety tests which will becomes Indian structural safety standard in 2012.
The aim of the tests was to show that with basic modifications the present car could meet the existing safety.