PRESENTATION ON TATA NANO Journey
Presented by: TEAM EVOLUTION
1. Introduction Of Tata Company 2. The seeds of Dream 3. The Nano Project 4. Plant Of Tata Nano in Sanand 5. Deal Of Tata Nano 6. Anatomy 7. Competencies of TATA NANO 8. Advantages of „The Wonder Car‟ 9. Negative Points of Tata Nano 10. Conclusion
INTRODUCTION OF TATA COMPANY
India’s largest business Group Diverse business in 7 sectors Revenues equivalent to 5.3% of India’s GDP international income 61% of Group revenue Operations in over 80 countries Products and services exported to 85 countries Largest employer in private sector over 300,000 employees
Group revenue FY 2008: Rs 251,543 cr / $ 62.5 bn
Group profit FY 2008: Rs 21,578 cr / $ 5.4 bn
Group holding structure
Rs 375.8 cr / $ 93 m
Rs. 80,025 / $ 18.7 bn Rs. 46,113 cr. / $ 11.0 bn Rs. 16,951 cr. / $ 4.0 bn Rs.22,812 cr / $ 5.4 bn Rs 7,106 cr / $ 1.7 bn Rs 4,730 cr / $ 1,125 m Rs 5,048 cr / $ 1.2 bn Rs 4,870 cr / $ 1,158 m Rs 4,264 cr / $ 1,014 m
Rs 26 cr / $ 6.45 m Rs. 15,000 cr / ~ $ 3.4 bn Rs 2,735 cr / $ 680 m
Rs. 12,000 cr / ~ $ 2.6 bn
•Graduated from Cathedral and John Connon School, Mumbai •Bachelor of Science degree in architecture from Cornell University in 1962 •Advanced Management Program conducted by Harvard Business School in 1975
•Chairman of Tata Sons •Chairman of all major Tata companies (Tata Steel, Tata Motors, Tata Power, Tata Consultancy Services, Tata Tea, Tata Chemicals, Indian Hotels, Tata Teleservices) •Chairmanship of the government of India's Investment Commission •Membership of the central board of the Reserve Bank of India •Membership the international advisory boards of Mitsubishi Corporation, •Membership the American International Group, •Membership J.P. Morgan Chase, •Membership the International Investment Council set up by the president of the Republic of South Africa, •Membership the Asia Pacific advisory committee to the board of directors of the New York Stock Exchange •Serves on the board of trustees of the Ford Foundation •Programme board of the Bill & Melinda Gates Foundations' India AIDS initiative •And chairs the advisory board of RAND's Center for Asia Pacific Policy
Awards and distinctions:
•The Padma Bhushan, on Republic Day, January 26, 2000 •Honorary doctorate in business administration by Ohio State University •Honorary doctorate in technology by the Asian Institute of Technology, Bangkok •An honorary doctorate in science by the University of Warwick
21 May 2009
THE SEEDS OF DREAM
THE SEEDS OF DREAM
"I observed families riding on 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 family. Tata Motors’ engineers and designers gave their all for about four years to realise this goal..."
SMALL CAR, BIG QUESTIONS
In early 2003, five engineers from Tata Motors trooped into the main conference room at Bombay House, the Victorian sandstone building that houses the headquarters of the Tata Group. They had been summoned at a day‟s notice from the Tata Motors factory in Pune by company Chairman Ratan N. Tata, who had just made a promise the world said would be „impossible‟ to keep.
Tata had told a Financial Times correspondent on the sidelines of the Geneva Auto Show that he was thinking of making a car that would cost about € 2,000. Adjusted against the then exchange rate of the rupee, that translated to Rs 1 lakh. Tata says he had never really defined the project in his head exclusively by its pricing. “It was the media that said it,” says Tata. “But we decided to accept the challenge….” With that resolution, Tata imprisoned himself and his engineers in a promise to fulfil which they would have to all but rewrite the principles of automotive engineering. When the engineers walked into the conference room that morning, they knew that the meeting had something to do with Tata‟s statement about a small car that they vaguely remembered reading about in newspapers a few days ago. Little did they realise then that the next four years of their lives would be dotted with moments of agonising failure and heady success, between which they would eat, drink and catch up with their families. The worst: the engineers would not be able to share with anyone, even their wives, what was going on inside their second home, the drab block of concrete called Engineering Research Centre (ERC) at Tata Motors‟ campus on the outskirts of Pune.
About The NANO Project
“Dream-dream and dream, because dream gives vision, vision gives thoughts and finally thoughts lead to the action". Each letter of these motivational words said by India's former President Dr. A.P.J. Abdul Kalam goes exactly with Mr. Ratan Tata, Chairman of Tata group, who in the year 2003, dreamt of producing a safe, affordable Car for the common man. Finally after the wait of five years, crossing all financial and technological barriers, Ratan Tata kept his promise and unveiled Tata 'Nano' on 10th January 2008, at the 9th Auto Expo 2008 in New Delhi. Tata Nano, cool & smart, launched by Tata Motors is world's cheapest Car with a price tag of $ 2500.
The People’s Next Car…
The making of the Nano
• Ratan Tata or RNT rolls the window down and talks about the vision and conviction, the innovation and improvisation, and the leap of faith that went into creating the People's Car.
• The launch of the People's Car by Tata Motors is a defining moment in the history of India's automotive industry. For Tata Motors, the car - christened the Nano, because it is a small car with high technology - is the next big step in a journey that began with the Indica.
• For the Tata Group, it is the realisation of a pioneering vision to create a breakthrough product globally that rewrites the rules of the small-car business. It was never meant to be a Rs1-lakh car; that happened by circumstance. • When RNT was interviewed by the [British newspaper] Financial Times at the Geneva Motor Show and he talked about this future product as a low-cost car. He was asked how much it would cost and He said about Rs1 lakh. The next day the Financial Times had a headline to the effect that the Tatas are to produce a Rs100,000 car. His immediate reaction was to issue a rebuttal, to clarify that that was not exactly what he had said. Then he thought, I did say it would be around that figure, so why don't we just take that as a target.
Description about Nano
The project has literally become India's claim-for-fame in the international-media due to Tata Motors' innovation in developing the car, as well as keeping it low in price. The car itself is expected to boost the Indian Economy, create entrepreneurial-opportunities across India, as well as expand the Indian car market by 65%. The car was envisioned by renowned industrialist, Ratan Tata, Chairman of the Tata Group and Tata Motors, who has described it as an eco-friendly "people's car". Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressedair as fuel and an electric-version. Tata Group is expected to mass-manufacture the Nano in very large quantities, particularly the electric-version, and, besides selling them in India, to also export them world-wide.
New Plant Site of TATA NANO „SANAND‟ - Gujarat
Current Location of TATA NANO
The Tata Nano project location in Sanand boasts of close connectivity to National Highway-8 connecting Rajkot and Ahmedabad. The Nano site is also close to the proposed Dholera port, which is being set up as an industrial development project as part of the implementation of DelhiMumbai freight corridor. 15
Pull-out Plant of TATA NANO „Singur‟ – West Bengal
Causes of Pull-Out of Singur
Due to the Singur land dispute, the "Stalled Car Factory" is "Costing Jobs, Splitting Neighbors in West Bengal” “ Tata's problems in West Bengal are scaring off other industries hoping to locate here, including Infosys, a software maker that wanted to build a business park that would provide 5,000 jobs. Due to ongoing opposition to Tata's Singur car-factory by Mamta Banerjee, who demanded land to be returned from the factory, Tata Motors took decision to pull out of Singur. Tata Motors is manufacturing Tata Nano at its Pantnagar plant. Tata Motors announced it was pulling out its Nano small car industrial project from West Bengal's Singur and blamed the Mamata Banerjee-led Trinamool Congress, which spearheaded the protests against the factory, for the 'painful' decision. While existence of Tata Nano could lead to high industrial growth , the exit lead west Bengal a loss of more than 80,000 crore .How ever Tata has to suffer in terms of delay and settlement cost .
Deal Of Tata Nano
• Mr. Narendra Modi encouraged Gujarat for this project • Mr. Modi wants Gujarat to shine on the global map
Gujarat has hit a jackpot in the form of “NANO” after controversy in Singur
Terms of Deal with „Gujarat‟ for TATA Nano
A loan of Rs. 9750 Crore & that too at an amazingly soft at 0.1% simple rate of interest. Repayment of this loan @ 0.1% over 20 years.
They got 100% exemption on electricity duty.
Terms of Deal with „Gujarat‟ for TATA Nano
The 1100 Crores’ Land comes highly subsidies without any stamp duty registration and transfer charges. The payment for land would be made in eight equal annual instalment at a compound interest of 8% p.a.
Nano to bring cheer to Rajkot‟s auto parts industry
Rajkot has biggest automobile parts indutry so, Tata gave auto parts contract to Rajkot‟s auto part industry Rajkot is a hub for the auto parts ancillary units and will be happy to supply parts to Tata
Nano to bring cheer to Rajkot‟s auto parts industry
There are 100 such units in Rajkot GIDC estate at Metoda with an annual turnover of Rs 1,500 crore.
Out of these, the supply to Tata comes to Rs 200 crore per annum, and supports around 50 units in a major way
Anatomy of “Nano Car”
Length Width Height Engine Capacity Power Fuel Injection 3.1 metres 1.5 metres 1.6 meters All-aluminium, Rear Mounted, Rear Wheel Drive 623 cc 33 PS Multi Point Fuel Injection (MPFI)
Body Type Seating Capacity
Petrol, Diesel Version will be later
Sheet Metal 04 (Four) 20-22 Kmpl (City drive)
Mileage Top Speed Emission Norms Safety Norms Versions
26 Kmpl (Highways) 75 K.M Euro-IV, Bharat Stage-III compliant Frontal Crash Tested One Standard and Two Deluxe
Specifications of Tata ‘Nano’
The Standard Variant of the Car has a dealer price of rupees one lakh (US $2500) and is the cheapest car in the world. (Transport costs and ValueAdded Taxes exclusive) A four-door car that can seat four-five passengers. As compared to Maruti 800, it is eight per cent smaller on the outside but on the inside it provides 21 per cent more leg space than the Maruti 800. It conforms to all the emission standards as well as the Offset and Side Crash norms followed internationally. It is also compliant with the Bharat 3 norm and the Euro 4 norm with respect to keeping pollution at bay. A 33-bhp car with a 624 cc engine. It will provide a mileage of 23 km/litre. The Nano Car will have two variants - a Standard and two Deluxe (Air Conditioned) versions. There is no power steering in the car.
What makes the TATA NANO so cheap!!!
Various colors of “The Wonder Car”
3D view of TATA NANO
Competencies of Tata Nano
• Tata is now 57th most valuable brand globally livemint.com: April 22, 2008 The Tata group’s intense activities in 2007 have seen it rising 45 places to No. 57 in Brand Finance Top 500 Global Brands • Expectations According to one report, India as well as other nations, such as European nations[, have great expectations from the Nano and are keenly and eagerly eagerly awaiting it, especially the electric version of the Nano. • Modular design
In fact, Tata envisions going even further, providing the tools for local mechanics to assemble the car in existing auto shops or even in new garages created to cater to remote rural customers. With the exception of Manjeet Kripalani, BusinessWeek's India bureau chief, few have focused on this breakthrough element of the Nano innovation (BusinessWeek.com, 1/10/08).
Competencies of Tata Nano
• Pricing strategy Tata initially targeted the vehicle as "the least expensive production car in the world"— aiming for a starting price of 100,000 rupees or approximately $2300 US despite rapidly rising material prices • Export expectation
• Being worlds cheapest car it is expected that not only India demand for Nano will go rise at global level. Since it meeting Euro-4 norms at this price so this is taking as a future of small car segment .
• Reputation and Acceptance of Tata After launch “TATAs have shown the world what Indian engineering is truly capable of”
Financial Times U K reports
• Enthusiastic support Tata Motors is receiving preliminary and some very enthusiastic support in the media and officials, even from Europe, for the electricversion from India as well as other-nations. The enthusiasm is even higher than that for the petrol-version 30
ADVANTAGES OF “THE WONDER CAR”:
Nano will give more mileage in less petrol Many Automobile companies will get the benefit from this infrastructure Nano will create Job opportunity for the 10,000 people (approx) It‟s like “DREAM COME TRUE” for middle class people
MORE ADVANTAGES OF “THE WONDER CAR”:
It will help for the employment of Engineers, their skill development & creation of trained manpower It will also help to Shipping industries & Air-line industries
The Prices of land near project area also go up in now-adays
Because of this wonder car there is also development of roads near Sanand It will also helps in development of Schools & Hospitals
SOME MORE ADVANTAGES OF “THE WONDER CAR”:
Tata had come to Gujarat not just to make money, but to contribute to the state development & public welfare
Educational institutes see window to start new Automobile courses in Ahmedabad Tata‟s are going to start An Auto academy & Driving school along with the Nano manufacturing
Reactions about Nano
• "It's a good historic moment for the Indian auto industry and also a proud one indeed that an Indian company took a step forward on this road. Its an upgradation for an auto wheeler rider to by a car now.“ Rajesh Jejurikar, Managing Director, Mahindra and Renault's. "It's good product but it's still too early to say whether it will overtake the 800 because it caters to a totally new market segment.” Said Jagdish Khattar, Former MD of Maruti Udyog Limited "Meeting the proper quality standards and safety is not feasible at all in such a model. Andreas Prinz, Managing Director (Passenger Cars), Volkswagen Group Sales India. "I think it is a great thing for India because mobility is giving new opportunities. I hope Tata drives to great success with the Rs one lakh car, but it is not included in our plan.“ Thomas Kuehl, Board Member, Skoda Auto India.
Few disadvantages in a rear engine car:
• uneven weight distribution and hence poor traction control • poor cornering and poor handling • poor engine cooling and hence more chance for engine overheating • almost no boot space and cramped space for rear passengers • More congested roads
Few more disadvantages….
• • • • • More supply - More surplus as less export More competition Less margins Low quality High Real estate prices - parking space and parking charges will become more
• Maruti-Suzuki will completely reskin Maruti 800 (similar to what the company recently did with Zen-Estilo) next year. The company will rebrand it and even power it with a 600cc engine against the current 800cc. The Munjal family behind Hero Honda, India's largest two wheeler maker, which is mulling a foray into the four-wheeler segment .is said to be in talks with BRP (Bombardier Recreational Products) for developing a 500cc small car to rival Tata‟s one lakh car. Hero Group was reported to have been closely monitoring the Rs one lakh project by Tata Motors and learn from it to de-risk its own Endeavour. Renault Nissan is the first one to come up with a idea to rival Tata‟s car it plans to produce a car priced at below $3,000 (Rs 1.30 lakh) in India. As Renault‟s local partner Mahindra is not interested in making such a low cost car, Renault- Nissan may settle with india‟s robust two wheeler manufacturer.
Incidentally Bajaj is also planning to foray into four wheeler through a smart car. More are chances for a new JV between Bajaj and Renault – Nissan to rival Tata‟s one lakh car.
• Carmaker Honda Siel said it will enter into small-car segment with the launch of 'Jazz' in 2009. said in auto expo said honda siel india ltd. President. India‟s lone electric vehicle maker is believed to be developing a small car based on its Reva platform for the redhot Rs 1-lakh car market. Reva‟s one lakh car would be a four-seater , four-door model and will be powered by heavy batteries than its existing line-up and the new car can reach a top speed of 100-120kph (80kph for the current Reva products) . Reva‟s low cost car is expected by 2010. The current Reva range comes in three variants priced in the range of Rs 3.3-4 .3 lakh in India. Chinese manufacturers like chery which are scouting to enter the indian market may use this opportunity for their debut since they already products in this price range. These subcompact car segment may also attract new indian players like ICML and Xenitis. Global auto a JV of Xentis Group and China‟s Guangzhou Automobile Industry based in bengal plans to introduce a “people‟s car that would be in sync with the affordability factor”. Xenitis signed a Memorandum of Understanding (MoU) with GAIG to manufacture four-wheelers. The proposed xenitis small car is likely to go on sale by the end of October 2008. Global Auto has launched a motorcycle called Xpression early this 38 year. •
WORLD’S 5 CHEAPEST CARS
• 1. Cheapest cars Tata Nano
2. Cheapest cars : Chery QQ3
city car marketed in 2003. In China, it is sold for 29,000-50,000 Remnibi, while internationally it is priced at $5,000. antilock brake systems, dual front airbags, power windows and a Euro-III compliant engine with air-conditioning.
3. Cheapest cars Maruti 800
• Introduced in 1983, • 800cc engine, • Great fuel efficiency and low maintenance cost. Tagged at $5,200, it is available in both AC and non-AC versions.
4. Cheapest cars: Merrie Star
• Made by China-based Geely Automobile, four doors , riced at $5,500, it was launched in 2005 engine size ranging from 1.0 to 1.3 litres, Geely exports this model to Southeast Asia and Africa.
5. Cheapest cars S-RV Mini SUV
• Launched in 1998, the HQ or Haoqing S-RV belongs to the HQ series by Geely Automobile, China. This five-door, five-seater is very roomy, adjustable pitch seats, The basic model is priced at $5,780.
Future of Nano
• Emerging markets are a fertile ground for innovation. The challenge of reaching dispersed, low-income consumers in emerging markets often spurs significant innovation. • As customers gain more power, they will demand more tailoring and value-added service to meet their needs. Companies that innovate on this dimension are likely to be richly rewarded. • World is getting tougher day by day being unique is a competitive advantage. Expectations to Nano has proved this . • After 100 years to Henry Ford , Tata has proved him again not only he came out of the expectations but also came out with a platform for Indian auto sector . • So this as per this project conclusion can be draw as a future car not only of Indian but also if exported than could be to the world.
• Nano really proved cheapest car of the industry
• Nano definitely helps to come true for middle man „s dream
• Some hidden minus points of nano are there, still It is beneficial to Gujarat as a state development.
• Brand Gujarat gets a big boosts internationally due to Nano Project.
_####,____,####' __"###,__,####' ___"####.####'_____,,,,,,,,,,, ____"######"____,########,,___####____,#### ______####_____#####""####,__####____#### ______####____,####____####_,####____#### ______####____,###,____####__,####___#### ______####_____'####,,####'____'####,,#### ______####_______"#####¸#"______"######" ¸.•?´¨`?•.¸¸.•?´¨`?•.¸¸.•?´¨`?•.¸¸.•?´¨`?•.¸¸.•?´¨`?•.