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I TANVIRAHMED SHEIKH here by declare that the project report entitled “The Study
on Perception of people about NANO car in Baroda city” under guidance of
Mr. JIGNESH.PANCHAL submitted in partial fulfillment of the requirements for the
award of the degree of MASTER OF BUSINESS ADMINISTRATION TO GUJRAT
UNIVERSITY, AHMADABAD is my original work.

Signature :
Date :
Place : Baroda

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In order to make my grand project I acknowledge a special thanks to all those


people without whose supports it would not be possible for me to complete my report.

First of all I really thankful to my Sigma Institute of Management because of


them I could achieve the target. I express my sincere thanks to our Director Dr. Tripat
Kaur and my project guide Mr. Jignesh Panchal who had guide to me throughout
my project.

I would also thankful to the TATA MOTORS for giving me this opportunity to
work on “NANO” car in Baroda city.
Also I would like to express my inner feeling for all the people for co-operating
and helping me throughout the project.
Last but not the least, I am thankful to my parents and friends who have
provided me with their constant support throughout this project.

TANVIRAHMED SHEIKH
MBA (SEMESTER – IV)
MARKETING
ROLL NO. : 20
SIGMA INSTITUTE OF MANAGEMENT
GUJARAT UNIVERSITY

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The professional training is the internal part of an M.B.A. program. It helps the
students understand practical aspects of Business Management in a better way as a
part of my M.B.A. program at Sigma Institute of Management (Gujarat Uni.). I was
supposed to work with the organization.

“Marketing Research is the systematic and objective identification, collection,


analysis, dissemination, and use of information for the purpose of improving decision
making related to identification and solution of problems and opportunity”

“Perception is the process, by which an individual selects, organizes and interprets


information inputs to create a meaningful picture of the world around as”

To be a Master of Business Administration student is a matter of pride because we are


in a field, which helps us to develop from a normal human being into a disciplined, and
dedicated professional. One has to be a good learner to sharper knowledge in the
particular field to achieve and attain the desired goals and heights. I conducted to gain
an understanding of what goes in to mind of the customer about “NANO”. To find the
perception of people on “NANO” in the Baroda city, I used research questionnaires as
the research and data collection tools. The responses were collected from 300
respondents. from various areas of Baroda.
I had learned lot during my Grand Project on perception of people on Tata’s “NANO”,
and I hope this will be helpful to find out perception of people on “NANO” car in
Baroda city.

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The grand project study on a PERCEPTION OF PEOPLE ON “NANO” CAR IN


BARODA CITY based on customer survey. The main objectives of the project are

 To know the perception of people about “NANO” car in Baroda


city.

 To know about awareness of products.

 To know about factors affecting purchase decision of “NANO”.

 To know acceptance level of people in Baroda City.

 To know how purchase decision of “NANO”.varies from different


Income group.

For this project customer research was carried out at various area of Baroda City. In
this customer research, I learnt about different types of customer’s perception about
TATA”s NANO in Baroda City.

At the end it is submitted to “Sigma Institute of Management Studies”

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Sr. CONTENTS PAGE


NO. NO.
1. INDUSTRY PROFILE 8
2. COMPANY PROFILE 16
3. THEORITICAL BACKGROUND 31
4. IDENTIFICATION OF THE STUDY 73
5.1 MARKETING RESEARCH PROBLEM 73
5.2 SCOPE OF THE STUDY 73
5.3 OBJECTIVE OF THE STUDY 73
5.4 LIMITATION OF THE STUDY 73
5. RESEARCH METHODOLOGY 74
6. INTERPRETATION AND ANALYSIS 77
7. INTERPRETATION OF RESULTS 99
8. CONCLUSION 101
9 ANNEXURE 102
9.1 BIBLIOGRAPHY 103
9.2 APPENDICES 104

LIST OF TABLES & GRAPHS


TABLE/ ASPECT
GRAPH NO.
1. SHOWING GENDER CATEGORY

2. SOWING AGE GROUP OF RESPONDENTS.

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3. SHOWING INCOME GROUP OF RESPONDENTS

4. SHOWING OCCUPATION LEVEL OF RESPONDENTS.

5. SHOWING NO OF RESPODENTS WHO ARE HAVING


VEHICLE OR WHO DO NOT HAVE IT.
6. SHOWING PREFERENCE FOR RS. 1 LAKH CAR

7. SHOWING NO. OF RESPONDENTS WHO ARE AWARE


ABOUT “NANO”
8. SHOWING PREFERENCE OF THE RESPONDENTS ABOUT
“NANO”
9. SHOWING NO. OF RESPONDENTS WHO PLAN TO BUY
“NANO” WITHIN 1 TO 2 YEAR
10. SHOWING THE NO. OF RESPONDENT’S PREFERENCE
ABOUT MODEL OF THE “NANO”
11. SHOWING OPINION FOR “NANO’S” MILEAGE
12. SHOWING ATTRIBUTES PREFERENCE GIVEN BY
RESPONDENTS WHILE PURCHASING “NANO”
12.1 BRAND NAME
12.2 AFFORDABILITY
12.3 SHAP/DESIGN
12.4 SAFETY
12.5 COMFORT
13. SHOWING THE PREFERENCE OF THE RESPONDENTS ON
“NANO” COMPARE TO SECOND HAND CAR
14. SHOWING HOW PURCHASE DECISION OF “NANO” WILL
AFFECT TO RESPONDENTS STATUS
15. SHOWING NO. OF RESPONDENTS WHO BELIEVE “NANO”
AS A DREAM CAR.

TATA GROUP PROFILE:

The Tata Group comprises 98 operating companies in seven business sectors:


information systems and communications; engineering; materials; services; energy;

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consumer products; and chemicals. The Group was founded by Jamsetji Tata in the mid
19th century, a period when India had just set out on the road to gaining independence
from British rule. Consequently, Jamsetji Tata and those who followed him aligned
business opportunities with the objective of nation building. This approach remains
enshrined in the Group's ethos to this day.

The Tata Group is one of India's largest and most respected business conglomerates, with
revenues in 2006-07 of $28.8 billion (Rs129,994 crore), the equivalent of about 3.2 per
cent of the country's GDP, and a market capitalization of $66.9 billion as on February 21,
2008. Tata companies together employ some 289,500 people. The Group's 27 publicly
listed enterprises among them stand out names such as Tata Steel, Tata Consultancy
Services, Tata Motors and Tata Tea have a combined market capitalization that is the
highest among Indian business houses in the private sector, and a shareholder base of
over 2.9 million. The Tata Group has operations in more than 80 countries across six
continents, and its companies export products and services to 85 countries.

The Tata family of companies shares a set of five core values: integrity, understanding,
excellence, unity and responsibility. These values, which have been part of the Group's
beliefs and convictions from its earliest days, continue to guide and drive the business
decisions of Tata companies. The Group and its enterprises have been steadfast and
distinctive in their adherence to business ethics and their commitment to corporate social
responsibility. This is a legacy that has earned the Group the trust of many millions of
stakeholders in a measure few business houses anywhere in the world can match.

Values and purpose:


Leadership with trust
Purpose
At the Tata Group our purpose is to improve the quality of life of the communities we
serve. We do this through leadership in sectors of national economic significance, to

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which the Group brings a unique set of capabilities. This requires us to grow aggressively
in focused areas of business.

Our heritage of returning to society what we earn evokes trust among consumers,
employees, shareholders and the community. This heritage is being continuously enriched
by the formalisation of the high standards of behavior expected from employees and
companies.

The Tata name is a unique asset representing leadership with trust. Leveraging this asset
to enhance Group synergy and becoming globally competitive is the route to sustained
growth and long-term success.

FIVE CORE VALUES

The Tata Group has always sought to be a value-driven organisation. These values
continue to direct the Group's growth and businesses. The five core Tata values
underpinning the way we do business are:

Integrity: We must conduct our business fairly, with honesty and transparency. Everything
we do must stand the test of public scrutiny.

Understanding: We must be caring, show respect, compassion and humanity for our
colleagues and customers around the world, and always work for the benefit of the
communities we serve.

Excellence: We must constantly strive to achieve the highest possible standards in our
day-to-day work and in the quality of the goods and services we provide.

Unity: We must work cohesively with our colleagues across the Group and with our
customers and partners around the world, building strong relationships based on
tolerance, understanding and mutual cooperation.

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Responsibility: We must continue to be responsible, sensitive to the countries,


communities and environments in which we work, always ensuring that what comes from
the people goes back to the people many times over.

A SAGA OF VISION, COMMITMENT AND FORTITUDE:

As much an institution as it is a business conglomerate, the Tata Group is unique in more


ways than one. Established by Jamsetji Tata in the second half of the 19th century, the
Group has grown into one of India's biggest and most respected business organisations,
thanks in no small part to its entrepreneurial vision, its commitment to ideals that put
people before profits, and its fortitude in the face of adversity.

Family pride

The Tata family of enterprises comprises 98 companies in seven business sectors. This
section lists all these companies under the sectors in which they operate, besides the two

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promoter companies of the Group. Visitors can, by clicking on the relevant links, get a
profile of individual companies, their subsidiaries (if any), their products and services,
contact details, etc.

The seven business sectors


ENGINEERING (AUTOMOTIVE):

Tata Auto Comp Systems:


Subsidiaries / associates / joint ventures: International Automotive, Knorr Bremse
Systems for Commercial Vehicles, Tata Auto Comp GY Batteries, TACO Engineering,
TACO Faurecia Design Centre, TACO Hendrickson Suspension Systems, TACO Interiors
and Plastics Division, TacoKunststofftechnik, TACO MobiApps Telematics, TACO Supply
Chain Management, TACO Tooling, TACO Visteon Engineering Center, Tata Ficosa
Automotive Systems, Tata Johnson Controls Automotive, Tata Toyo Radiator, Tata Yazaki
Auto Comp, TC Springs, Technical Stampings Automotive

Tata Motors:
Subsidiaries / associates / joint ventures: Concorde Motors, HV Axels, HV
Transmissions, Nita Company, TAL Manufacturing Solutions, Tata Cummins, Tata Daewoo
Commercial Vehicles Company, Tata Engineering Services, Tata Precision Industries, Tata
Technologies, Telco Construction Equipment

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ENGINEERING SERVICES
Tata Projects, TCE Consulting Engineers, Voltas
ENGINEERING PRODUCTS
TAL Manufacturing Solutions, Telco Construction Equipment Company, TRF

MATERIALS:

COMPOSITES
Tata Advanced Materials
METALS

Tata Steel :
Subsidiaries / associates / joint ventures: Hooghly Met Coke and Power Company,
Jamshedpur Injection Powder (Jamipol), Jamshedpur Utility and Service Company
Limited (JUSCO), Lanka Special Steel, mjunction services, NatSteel, Sila Eastern
Company, Tata Blue Scope Steel, Tata Metallic, Tata Pigments, Tata Refractories
Tata Ryerson, Tata Sponge Iron, Tata Steel (Thailand), Tata Steel KZN, Tayo Rolls, The
Dhamra Port Company, The Indian Steel and Wire Products, The Tinplate Company of
India, TM International Logistics, TRF

ENERGY:

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POWER
Tata BP Solar India
Tata Power
Subsidiaries / associates / joint ventures: Tata Ceramics, Tata Power Trading, North
Delhi Power Limited
OIL AND GAS
Tata Petrodyne

CHEMICALS:

Rallis India
Tata Chemicals
Tata Pigments
PHARMA
Advinus Therapeutics

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SERVICES:

HOTELS AND REALTY


Indian Hotels (Taj group)
Subsidiaries / associates / joint ventures: Taj Air, Roots Corporation (Ginger Hotels)
THDC
Tata Realty and Infrastructure
FINANCIAL SERVICES
Tata AIG General Insurance, Tata AIG Life Insurance, Tata Asset Management
Tata Capital, Tata Financial Services, Tata Investment Corporation
OTHER SERVICES
Tata Quality Management Services, Tata Services, Tata Strategic Management
Group
CONSUMER PRODUCTS:

Infiniti Retail
Tata Tea
Subsidiaries / associates / joint ventures: Tetley Group, Tata Coffee, Tata Tetley, Tata Tea Inc
Tata Ceramics
Tata McGraw Hill Publishing Company
Titan Industries
Trent

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INFORMATION SYSTEMS AND COMMUNICATIONS:

INFORMATION SYSTEMS
Nelito Systems
Tata Consultancy Services
Subsidiaries / associates / joint ventures: APONLINE, Airline Financial Support Services,
Aviation Software Development Consultancy, CMC, CMC Americas Inc, Conscripti, HOTV,
Tata America International Corporation, WTI Advanced Technology.
Tata Elxsi
SerWizSol
Tata Interactive Systems
Tata Technologies

COMMUNICATIONS
Tata Sky
Tata Teleservices
Subsidiaries / associates / joint ventures: Tata Teleservices (Maharashtra)
Tata Communications
Tata net
INDUSTRIAL AUTOMATION
Nelco
Subsidiaries / associates / joint ventures: Tatanet

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TATA MOTORS PROFILE:

Tata Motors Limited is India's largest automobile company, with revenues of Rs. 32,426
crores (USD 7.2 billion) in 2006-07. It is the leader by far in commercial vehicles in each
segment, and the second largest in the passenger vehicles market with winning
products in the compact, midsize car and utility vehicle segments. The company is the
world's fifth largest medium and heavy commercial vehicle manufacturer, and the
world's second largest medium and heavy bus manufacturer.

The company's 22,000 employees are guided by the vision to be "best in the
manner in which we operate best in the products we deliver and best in our value
system and ethics." Tata Motors helps its employees realize their potential through
innovative HR practices. The company's goal is to empower and provide employees
with dynamic career paths in congruence with corporate objectives. All-round potential
development and performance improvement is ensured by regular in-house and
external training.

The company has won several awards recognising its training programs.
Established in 1945, Tata Motors' presence indeed cuts across the length and breadth
of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in
1954. The company's manufacturing base is spread across India - Jamshedpur
(Jharkhand) in the east, Pune (Maharashtra) in the west, and in the north in Lucknow
(Uttar Pradesh) and Pantnagar (Uttarakhand). A new plant is being set up in Singur
(close to Kolkata in West Bengal) to manufacture the company's small car. The nation-
wide dealership, sales, services and spare parts network comprises over 2,000 touch
points. The company also has a strong auto finance operation, TML Financial Services

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Limited, supporting customers to purchase Tata Motors vehicles.Tata Motors, the


first company from India's engineering sector to be listed in the New York Stock
Exchange (September 2004), has also emerged as an international automobile
company. In 2004, it acquired the Daewoo Commercial Vehicles Company, Korea's
second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles
Company has launched several new products in the Korean market, while also
exporting these products to several international markets. Today two-thirds of heavy
commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata
Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach
manufacturer, with an option to acquire the remaining stake as well. Hispano's presence
is being expanded in other markets.

In 2006, it formed a joint venture with the Brazil-based Marcopolo, a global


leader in Body-building for buses and coaches to manufacture fully-built buses and
coaches for India and select international markets. Tata Motors also entered into a joint
venture in 2006 with Thonburi Automotive Assembly Plant Company of Thailand to
manufacture and market the company's pickup vehicles in Thailand. In 2006, Tata
Motors and Fiat Auto formed an industrial joint venture at Ranjangaon (near Pune in
Maharashtra, India) to produce both Fiat and Tata cars and Fiat power trains for the
Indian and overseas markets; Tata Motors already distributes and markets Fiat branded
cars in India. In 2007, Tata Motors and Fiat Auto entered into an agreement for a Tata
license to build a pick-up vehicle bearing the Fiat nameplate at Fiat Group Automobiles'
Plant at Cordoba, Argentina. The pick-up will be sold in South and Central America and
select European markets.

These linkages will further extend Tata Motors' international footprint, established
through exports since 1961. While currently about 18% of its revenues are from
international business, the company's objective is to expand its international business,
both through organic and inorganic growth routes. The company's commercial and
passenger vehicles are already being marketed in several countries in Europe, Africa,
the Middle East, Australia, South East Asia and South Asia. It has assembly operations

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in Malaysia, Kenya, Bangladesh, Ukraine, Russia and Senegal. The foundation of the
company’s growth is a deep understanding of economic stimuli and customer needs,
and the ability to translate them into customer-desired offerings through leading edge
R&D. The R&D establishment includes a team of 1400 scientists and engineers. The
company's Engineering Research Centre was established in 1966, and has facilities in
Pune, Jamshedpur and Lucknow. The ERC has enabled pioneering technologies and
products. It was Tata Motors, which developed the first indigenously developed Light
Commercial Vehicle, India's first Sports Utility Vehicle and, in 1998, the Tata Indica,
India's first fully indigenous passenger car. Within two years of launch, Tata Indica
became India's largest selling car in its segment. The ERC in Pune, among whose
facilities are India's only certified crash-test facility and hemi-anechoic chamber for
testing of noise and vibration, has received several awards from the Government of
India. Some of the more prominent amongst them are the National Award for Research
and Development Efforts in Industry in the Mechanical Engineering Industries sector in
1999, the National Award for Successful Commercialization of Indigenous Technology
by an Industrial Concern in 2000, and the CSIR Diamond Jubilee Technology Award in
2004.

The company set up the Tata Motors European Technical Centre (TMETC) in
2005 in the UK. TMETC is engaged in design engineering and development of
products, supporting Tata Motors' skill sets. Tata Daewoo Commercial Vehicle Company
and Hispano Carrocera also have R&D establishments at Gunsan in South Korea and
Zaragoza in Spain. The pace of new product development has quickened through an
organisation-wide structured New Product Introduction (NPI) process. The process with
its formal structure for introducing new vehicles in the market brings in greater discipline
in project execution.

The NPI process helped Tata Motors create a new segment, in 2005, by
launching the Tata Ace, India’s first indigenously developed mini-truck. The years to
come will see the introduction of several other innovative vehicles, all rooted in
emerging customer needs. Besides product development, R&D is also focusing on
environment-friendly technologies in emissions and alternative fuels.

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Through its subsidiaries, the company is engaged in engineering and automotive


solutions, construction equipment manufacturing, automotive vehicle components
manufacturing and supply chain activities, machine tools and factory automation
solutions, high-precision tooling and plastic and electronic components for automotive
and computer applications, and automotive retailing and service operations.

True to the tradition of the Tata Group, Tata Motors is committed in letter and spirit
to Corporate Social Responsibility. It is a signatory to the United Nations Global
Compact, and is engaged in community and social initiatives on labor and environment
standards in compliance with the principles of the Global Compact. In accordance with
this, it plays an active role in community development, serving rural communities
adjacent to its manufacturing locations.

With the foundation of its rich heritage, Tata Motors today is etching a refulgent
future.

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Milestones since inception:


It has been a long and accelerated journey for Tata Motors, India's leading automobile
manufacturer. Some significant milestones in the company's journey towards excellence
and leadership
1945 : Tata Engineering and Locomotive Co. Ltd. was
established to manufacture locomotives and other engineering products.

1948 : Steam road roller introduced in collaboration with


Marshall Sons (UK).

1954 : Collaboration with Daimler Benz AG, West Germany,


For manufacture of medium commercial vehicles. The
First vehicle rolled out within 6 months of the contract.

1959 : Research and Development Centre set up at Jamshedpur.

1961 : Exports begin with the first truck being shipped to Ceylon, now Sri Lanka.
1966 : Setting up of the Engineering Research Centre at Pune to provide impetus to
automobile Research and Development.
1971 : Introduction of DI engines.
1977 : First commercial vehicle manufactured in Pune.
1983 : Manufacture of Heavy Commercial Vehicle commences.
1985 : First hydraulic excavator produced with Hitachi collaboration.
1986 : Production of first light commercial vehicle, Tata 407, indigenously designed, followed
by Tata 608.
1989 : Introduction of the Tata mobile 206 - 3rd LCV model.
1991 : Launch of the 1st indigenous passenger car Tata Sierra.TAC 20 crane produced.
One millionth vehicle rolled out.
1992 : Launch of the Tata Estate.

1993 : Joint venture agreement signed with Cummins Engine Co. Inc. for the
manufacture of high horsepower and emission friendly diesel engines.

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1994 : Launch of Tata Sumo - the multi utility vehicle.

Launch of LPT 709 - a full forward control, light commercial vehicle.

Joint venture agreement signed with M/s Daimler - Benz / Mercedes - Benz

For manufacture of Mercedes Benz passenger cars in India.

Joint venture agreement signed with Tata Holset Ltd., UK for manufacturing

turbochargers to be used on Cummins engines.

1995 : Mercedes Benz car E220 launched.

1996 : Tata Sumo deluxe launched.

1997 : Tata Sierra Turbo launched.

100,000th Tata Sumo rolled out.

1998 : Tata Safari - India's first sports utility vehicle launched.

2 millionth vehicles rolled out.

Indica, India's first fully indigenous passenger car launched.

1999 : 115,000 bookings for Indica registered against full payment within a week.

Commercial production of Indica commences in full swing.

2000 : First consignment of 160 Indicas shipped to Malta.

• Indica with Bharat Stage 2 (Euro II) compliant diesel engine launched.
• Utility vehicles with Bharat 2 (Euro II) compliant engine launched.
• Indica 2000 (Euro II) with multi point fuel injection petrol engine launched.
• Launch of CNG buses.
• Launch of 1109 vehicle - Intermediate commercial vehicle.

2001 : Indica V2 launched - 2nd generation Indica.

• 100,000th Indica wheeled out.


• Launch of CNG Indica.
• Launch of the Tata Safari EX

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• Indica V2 becomes India's number one car in its segment.

2002 : Unveiling of the Tata Sedan at Auto Expo 2002.


• Petrol version of Indica V2 launched.
• Launch of the EX series in Commercial vehicles.
• Launch of the Tata 207 DI.
• 2,00,000th Indica rolled out.
• 5,00,000th passenger vehicle rolled out.
• Launch of the Tata Sumo'+' Series
• Launch of the Tata Indigo.
Tata Engineering signed a product agreement with MG Rover of the UK.

2003 : Launch of the Tata Safari Limited Edition.


• The Tata Indigo Station Wagon unveiled at the Geneva Motor Show.
• On 29th July, J. R. D. Tata's birth anniversary, Tata Engineering becomes Tata Motors
Limited.
• 3 millionth vehicles produced.
• First City Rover rolled out
• 135 PS Tata Safari EXi Petrol launched
Tata SFC 407 EX Turbo launched

2004 : Tata Motors unveils new product range at Auto Expo '04.
• New Tata Indica V2 launched
• Tata Motors and Daewoo Commercial Vehicle Co. Ltd. sign investment agreement
• Indigo Advent unveiled at Geneva Motor Show
• Tata Motors completes acquisition of Daewoo Commercial Vehicle Company
• Tata LPT 909 EX launched
• Tata Daewoo Commercial Vehicle Co. Ltd. (TDCV) launches the heavy duty truck
'NOVUS' , in Korea
• Sumo Victa launched
• Indigo Marina launched. Tata Motors lists on the NYSE

2005 : Tata Motors rolls out the 500,000th Passenger Car from its Car Plant
Facility in Pune.

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• The Tata Xover unveiled at the 75th Geneva Motor Show


• Branded buses and coaches - Starbus and Globus - launched
• Tata Motors acquires 21% stake in Hispano Carrocera SA.
• Tata Ace, India's first mini truck launched
• Tata Motors wins JRD QV award for business excellence.
• The power packed Safari Dicor is launched
• Introduction of Indigo SX series - luxury variant of Tata Indigo

• Tata Motors launches Indica V2 Turbo Diesel.


• One millionth passenger car produced and sold
• Inauguration of new factory at Jamshedpur for Novus
• Tata TL 4X4, India's first Sports Utility Truck(SUT) is launched
• Launch of Tata Novus
Launch of Novus range of medium trucks in Korea, by Tata Daewoo
Commercial Vehicle Co. (TDCV)

2006 : Tata Motors vehicle sales in India cross four million mark
• Tata Motors unveils new long wheel base premium Indigo & X-over concept at Auto
Expo 2006
• Indica V2 Xeta launched
• Passenger Vehicle sales in India cross one-million mark
• Tata Motors and Marcopolo, Brazil, announce joint venture to manufacture fully built
buses & coaches for India & markets abroad
• Tata Motors first plant for small car to come up in West Bengal
• Tata Motors extends CNG options on its hatchback and estate range
• TDCV develops South Korea's first LNG-Powered Tractor- Trailer
• Tata Motors and Fiat Group announce three additional cooperation agreements
Tata Motors introduces a new Indigo range
2007 : Tata Motors launches the long wheel base Indigo XL, India's first stretch
limousine

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Management:
Board of Directors:
Mr. Ratan N Tata (Chairman)
Mr. N A Soonawala
Dr. J J Irani
Mr. V R Mehta
Mr. R Gopalakrishnan
Mr. Nusli N Wadia
Mr. S M Palia
Dr. R A Mashelkar
Mr. Ravi Kant
Mr. P M Telang

Senior Management:
Mr. Ravi Kant : Managing Director

Mr. P M Telang : Executive Director

Mr. Rajive Dube : President (Passenger Cars)

Mr. C Ramkrishnan : Chief Financial Officer

Mr. P Y Gurav : Vice President (Corporate Finance-Accounts and Taxation)

Dr. S J Tambe : Vice President (Human Resource)

Mr. Zackria Sait : Vice President (Technical Services)

Mr. A M Mankad : Head (Car Plant)

Mr. S B Borwankar : Head (Jamshedpur Plant)

Mr. S Krishnan : Vice President (Commercial-PCBU)

Mr. Ravi Pisharody : Vice President (Sales & Marketing)

Mr. H K Sethna : Company Secretary

Corporate Communications
Mr. Debasis Ray
Tel: 022 – 66657613 : Head - Corporate Communications

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CHAIRMAN’S PROFILE
Mr. Ratan N Tata (Chairman)

Heading the Tata Group since 1991, Ratan N Tata is the Chairman of Tata Sons, holding
company of the Tata Group, and major Group companies including, Tata Motors, Tata
Steel, Tata Consultancy Services, Tata Power, Tata Tea, Tata Chemicals, Indian Hotels,
Tata Teleservices and Tata Auto Comp. He is also Chairman of two of the largest private
sector promoted philanthropic trusts in India. During his tenure, the Group has further
expanded its global reach, with its revenues growing over six fold to Rs 97,000 crore
($21.9 billion).

Mr. Tata joined the Tata Group in December 1962. After serving in various companies, he
was appointed the Director-in-Charge of The National Radio & Heading the Tata Group
since 1991, Ratan N Tata is the Chairman of Tata Sons, holding company of the Tata
Group, and major Group companies including, Tata Motors, Tata Steel, Tata Consultancy
Services, Tata Power, Tata Tea, Tata Chemicals, Indian Hotels, Tata Teleservices and Tata
Auto Comp. He is also Chairman of two of the largest private sector promoted
philanthropic trusts in India. During his tenure, the Group has further expanded its global
reach, with its revenues growing over six fold to Rs. 97,000 crore ($21.9 billion).
Mr. Tata joined the Tata Group in December 1962. After serving in various companies, he
was appointed the Director-in-Charge of the National Radio & Electronics Company
Limited (Nelco) in 1971. In 1981, he was named Chairman of Tata Industries, the Group's

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other holding company, where he was responsible for transforming it into the Group's
strategy think-tank and a promoter of new ventures in high-technology businesses.
He is associated with various organizations in India and abroad in varying capacities,
some of which are:
• Chairman, government of India's Investment Commission
• Member, Prime Minister's Council on Trade and Industry
• Member, National Hydrogen Energy Board
Member, National Manufacturing Competitiveness
• Competitiveness Council
• Serving on the International Investment Council set up by the president of the
Republic of South Africa
• Serving the International Business Advisory Council of the British government to
advise the chancellor of the exchequer
• Member, International Advisory Council of Singapore's Economic Development
Board
• Member, Asia-Pacific Advisory Committee to the board of directors of the New York
Stock Exchange
Member, international advisory boards of the Mitsubishi Corporation, the American
International
• Group and JP Morgan Chase
• President, court of the Indian Institute of Science, Bangalore
• Chairman, council of management, Tata Institute of Fundamental Research,
Mumbai
• Member, board of trustees of the Rand Corporation, Cornell University and
University of Southern California, and the Foundation Board of the Ohio State
University
• Chair, advisory board of RAND's Center for Asia Pacific Policy
• Member, Global Business Council on HIV / AIDS and the programme board of the
Bill & Melinda Gates Foundation's India AIDS initiative

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Mr. Tata received a Bachelor of Science degree in architecture from Cornell University in
1962. He worked briefly with Jones and Emmons in Los Angeles, California, before
returning to India in late 1962. He completed the Advanced Management Program at
Harvard Business School in 1975.
The government of India honored Mr. Tata with one of its highest civilian awards, the
Padma Bhushan, on Republic Day, January 26, 2000. He has also been conferred an
honorary doctorate in business administration by the Ohio State University, an honorary
doctorate in technology by the Asian Institute of Technology, Bangkok, and and honorary
doctorate in science by the University of Warwick.

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Manufacturing:
Tata Motors owes its leading position in the Indian automobile industry to its strong focus
on indigenisation. This focus has driven the Company to set up world-class manufacturing
units with state-of-the-art technology. Every stage of product evolution-design,
development, manufacturing, assembly and quality control, is carried out meticulously.
Our manufacturing plants are situated at Jamshedpur in the East, Pune in the West and
Lucknow in the North.

Jamshedpur:

Established in1945, the Jamshedpur unit was the company's first unit and is spread over
an area of 822 acres. It consists of 4 major divisions - Truck Factory, Engine Factory, Cab
& Cowl Factories, and the Novus. Engineering Division, which has one of the most
versatile tool making facilities in the Indian sub-continent.

Lucknow:

Tata Motors Lucknow is one of the youngest production facilities among all the Tata
Motors locations and was established in 1992 to meet the demand for Commercial
Vehicles in the Indian market.

Uttarakhand

The company has set up a plant for its mini-truck, Ace, at Pant Nagar in Uttarakhand. The
plant will begin commercial production during the course of the year.

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Research:
Research & Development:

Research provides the much-needed inspiration for the birth of new ideas, which in turn
breathes new life into products. World-class automotive research and development are
key factors that contribute to the leadership of the Company.

Engineering Research Centre (ERC):

The Research Centre at Jamshedpur regularly upgrades components and aggregates. A


well-equipped torture track enables rigorous and exhaustive testing of modifications
before they are used as regular fitments.

Safety (CRASH TEST FACILITY):


For Tata Motors, safety is of paramount importance. This avenue provides no room for the
slightest margin of error.

Tata Motors ERC is the only high-tech facility in India to evaluate the degree of passenger
safety in the event of any high-speed impact. Through a special crash test facility.
Different types of accidents are simulated; the results analyzed, and put to use in the
development of a vehicle that satisfies stringent international safety norms.

Special high-speed cameras record test crashes at the rate of 1000 frames per second.
An accident, for instance, at the speed of 50 kilometers per hour, lasts one eighth of a
second. Thus, 125 frames recorded by these cameras are available for study with the
completion of each individual test.

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Minimizing Noise (ANECHOIC CHAMBER):


Anechoic chamber is a highly sophisticated noise and vibration laboratory, the nerve
centre of which is a vast chamber lined with 88,000 cones projecting at various angles
from the walls and ceiling. It is one of its kinds in India and is developed completely with
in-house facilities.

Designing and Styling (CAD CENTRE):

The CAD centre is equipped with 53 state-of-the-art CAD stations and the latest
software. The CAD centre is a vital organ of ERC's Cab Design Section. CAD designing
involves development of vehicle specifications, styling interiors and exteriors, reviewing
the styling from the engineering and aesthetic points of view, virtual prototyping to check
for design acceptability and feasibility of manufacture.

AWARDS:
 PCBU bags Handa Golden Key Award…
 Tata Motors receives Uptime Champion Award 2007.
 Aggregates Business, CVBU, bags ‘Best Supplier Award’ from ECEL.
 'NDTV Profit' Business Leadership Award...
 Tata Motors bags National Award for Excellence in Cost Management...
 Tata Motors' TRAKIT bags silver award for 'Excellence in Design'...
 Tata Motors Pune - CVBU has bagged the "Golden Peacock National Quality Aw...
 Tata Motors was awarded four prestigious honors, at the 'CNBC TV18- Auto car.
 Tata Motors chosen as India's Most Trusted Brand in Cars...
 Business today selects Mr. P.P. Kadle as India's Best CFO in 2005...
 Pune Foundry Division bags prestigious Green Foundry Award...
 Tata Motors is 'Commercial Vehicle Manufacturer of the Year'...
 ACE bags 'Best Commercial Vehicle Design' at the BBC-Top Gear Awards....

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 Tata Motors bags the prestigious' CII-EXIM Bank award' for business excellence...
 'Car Maker of the Year' Award for Tata Motors.
 Tata Motors is 'Commercial Vehicle Manufacturer of the Year'
 'CFO of the Year Award 2004' awarded to Mr. Praveen P Kadle, Executive Director
 Tata Motors wins 'Golden Peacock Award' for Corporate Social Responsibility.
 Tata Motors CVBU Pune wins National Energy Award.
 Tata Motors - Jamshedpur wins 'Energy Efficient Unit Award'.
 Tata Motors wins the first CSIR Diamond Jubilee Technology Award.
 Tata Motors Jamshedpur & Lucknow win awards...

THE NEXT PEOPLE'S CAR:

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Tata Motors' plans would produce, in real terms, by far the cheapest car ever made.
An Indian car may soon earn a parking place in history alongside Ford's Model T,
Volkswagen's Beetle and the British Motor Corp.'s Mini, all of which put a set of wheels
within reach of millions of customers after they rolled onto the scene. Tata Motors is
developing a car it aims to sell for about $2,500 the cheapest, by far ever made.

# Source :(NYSE: TTM - news - people)

There is a lot riding on its small wheels. If the yet-to-be-named car is a success when it
goes on sale next year, it would herald the emergence of Tata Motors on the global auto
scene, mark the advent of India as a global center for small-car production and represent
a victory for those who advocate making cheap goods for potential customers at the
"bottom of the pyramid" in emerging markets. Most of all, it would give millions of people
now relegated to lesser means of transportation the chance to drive cars.
It is a hugely ambitious project rivals have called it impossible for any company. But it is
audacious for one that hadn’t even built cars a decade ago.

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For decades Tata Motors has been India's largest commercial vehicle maker the Tata logo
appears on buses, dump trucks, ambulances and cement mixers. Sturdy as elephants,
they are a fixture of the Indian landscape. Owners inevitably paint the exteriors in a
cheerful riot of bright red, green, orange, blue and yellow and line the un-air-conditioned
cabs with teakwood to keep them cooler in India's searing heat.

However ubiquitous, Tata's trucks faced a problem after the Indian government began
reforms that opened the Indian economy in 1991: the huge cyclical swings in demand
typical for commercial vehicles. To diversify, Tata would enter, at great expense, the less
volatile passenger car market.

Before the reforms Indian customers had so few choices that Tata was sheltered. When
demand tailed off it just worked down a waiting list, and there was never a need to
concern itself with customer desires. Sure enough, after the economy slumped in the late

1990s just when expenses for developing the passenger car hit home Tata truck and bus
sales plunged by 40% and Tata Motors lost $110 million in fiscal 2000. It was the first red
ink seen since 1945, when the company was founded to make locomotives. Executives
were stunned. "It was corporate India's biggest loss," says Ravi Kant, managing director
of Tata Motors. "The crisis changed us. We told ourselves, 'Never again.'"

But Tata Motors, part of India's largest conglomerate, first had to reset its ways. Like many
Indian companies protected for decades from foreign competition, Tata had gotten
to 2000 still fat and slow.

Change started with a spring 2000 meeting at the Lake house, a bungalow across the
street from the company's main factory in Pune, a three-hour drive east of Mumbai. Kant,
then in charge of the commercial vehicle division, needed fresh ideas instead of rigid
resistance, so in an experiment, he called a meeting of 20 of his most promising young
Managers all under 35 years old.
"I have a problem," he said in his matter-of-fact tone. "The company is bleeding." He
asked for ideas on how to stop the gush of red ink. Okay, they told him, trim costs.

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Girish Wagh was there, just 29 then. He remembers the shock of what came next. "Ravi

Kant said that 1% in cost cuts would be a rounding error. He asked for 10%!" says Wagh.
"Never had we thought of such a target." Every single year until then costs had gone up,
not down. Kant told them to present a basic plan that very afternoon, in front of him and
Alarmingly all their bosses.

They worked frantically. By the 3 p.m. meeting, their wildest ideas were on the table.
Taken together, they added up to 6.5%. "A breakthrough!" Kant remembers thinking. But
that's not what he said. "Please go back and think again," he told them. He needed 10%,
not 6.5%. "You've got three weeks." The young team took some measures even as it
scrounged for more. In came benchmarking, purchasing from Internet auctions, and
outsourcing parts to more efficient suppliers and boosting revenue by selling Tata-made
dies to other companies. Meanwhile, the Pune factory's veteran boss bought into the
project.

The transformation of Tata Motors had begun with the searing loss in 2000, but it
continued with a return to profit in the fiscal year ending March 2003. By then it was
producing two cars models and selling a bit abroad. Today, after buying or partnering, the
company has vehicle projects around the globe and exports 11% of output, mostly to
South Africa.

Efficiency is way up: It now takes between 12 and 15 minutes to change a die on the
passenger car assembly line, down from two hours in 2000. The company's break-even
point for capacity utilization is one of the best in the industry worldwide. Between 2000
and 2006 nearly 6,000 workers left the company with early-retirement deals. Meanwhile,
the once radical e-sourcing idea has become routine for Tata, which ran 750 reverse
auctions on Ariba in the past year to bring down purchasing prices by an average of 7%
for everything from ball bearings to the milk served in the company cafeteria. Tata Motors
listed on the New York Stock Exchange in 2004. After thousands of changes, in the
quarter ending December 2006 Tata earned $116 million on revenue of $1.55 billion.
Annual revenue grew to $5.2 billion for the fiscal year ending in March 2006. Analysts
worry that high product development costs and rising commodities prices could lower

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profit margins for the next few quarters.

The changes at Tata Motors are coming as India itself is transforming. With economic
growth charging along at 9% last year, more and more Indians can afford cars. But on the
highway from Mumbai to Pune, the new cars zoom past wooden carts filled with
construction materials and pulled by ponies, camels, elephants or even people. Roadside
markets offer chickens and geese those chosen are slaughtered on the spot and usually
carried home on motor scooters. Outside the Tata Motors gates in Pune, a woman in a
flowing red sari balances a 3-foot-wide basket on her head. It holds snacks and drinks
and serves as a roving roadside shop.

Inside the company gates is a modern factory complex. In one building, just past a small
statue of the beloved Hindu elephant god Ganesha, robots pick up pieces of sheet metal
and feed them into a series of 30-foot-tall stamping presses every ten seconds until the
left-side door of a Tata Safari suv is formed. In a building nearby, workers in navy-blue

uniforms use computer-aided designs from Tata engineers to create tools and dies used
to make those sheet-metal stampings. Tata Motors boosts its revenue by making dies for
Jaguar, Ford, General Motors and Toyota too, just as it does by allowing the made-in-
India Mercedes to be run
through its paint shop.

# Source : (NYSE: GM - news - people) & (NYSE: TM - news - people)

Workers at the Tata Motors factory have been trained in Japanese manufacturing
techniques that call for continuous improvement. A worker building Safaris noticed that
each day on average, one front grille was ruined when a worker leaned over to work on
the engine and accidentally scratched the grille with his belt buckle. Cost: about 2,500
rupees $57 a day, or $17,000 a year. Tata designed a simple protective cover for the
grilles, plus a slip-on fabric cover for belts and watches that is now used to cut down on
expensive waste at each of Tata Motors' factories. Cost: about 25 cents per vehicle.

That's the sort of thing that Girish Wagh, one of the breakfast-meeting whiz kids, was
working to foster when Kant called him in unexpectedly in December 2000. Kant needed

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someone to take on a risky project to extend the truck line beyond the sturdy Tata
mainstays. Kant wanted one cheap enough to compete with three-wheeled, motorized

rickshaws and even considered building a small, three-wheeled truck.


Before starting the project, Wagh did something no one at Tata Motors ever had: He
talked to customers. The three-wheeler men inevitably insisted on a cheap, dependable
truck that could go from village to market carrying, say, 200 chickens, a ton of onions or
potatoes, or 2,000 eggs. One night, as sunset approached, Wagh stuck with one rickshaw
driver. "I kept asking the question. Why? Why? Why do you want a four-wheeler?" Wagh
remembered. Finally, he got the real answer. It turned out it wasn't really a problem of
chickens or eggs. "If I had a four-wheeler, I would have better marriage prospects in my
village," the young man said. Drivers of three-wheelers are looked down upon in India.
Wagh realized that four wheels had emotional, not just practical, appeal.

When Tata Motors brought out the bare-bones Ace truck in May 2005 for just $5,100, it
had a monster hit: The company sold 100,000 in 20 months. To try to keep up with

demand, it offers the truck only in white to save the time it takes to change colors in the
factory paint shop. Tata is building a new factory that will be able to turn out 250,000 a
year starting this month.

So when Tata Motors needed someone to take charge of the company's most ambitious
plan yet to build the world's cheapest car ever Ravi Kant, who by then had become the
company's managing director, again turned to Wagh. Wagh remembers what he learned
marketing the little truck. "People want to move from two-wheelers to four-wheelers," he
says.” Today they can’t afford it.”

More and more can, but Indian car buyers today represent a tiny slice of a potentially
giant market India has just seven cars per 1,000 people. India's auto industry has grown
an average of 12% for the past decade, but just 1.3 million passenger vehicles were sold
in India in the fiscal year ending March 2006. That means a billion Indians buy about the
same number of cars in a year as 300 million Americans buy in a month.

If four wheels cost as little as two wheels, that could change fast. About 7 million scooters

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and motorcycles were sold in India last year, typically for prices between 30,000 rupees
and 70,000 rupees, about $675 to $1,600. Tata is targeting a price of 100,000 rupees one
lakh, in Indian terms of measurement or about $2,500 at current exchange rates, for its
small car. That sounds impossibly cheap in the West but remains three times higher than
India's annual per capita income.

Within a few years 2 million of those motorcycle owners may trade up to buy the Tata car,
Figures McKinsey and Co. partner Ramesh Mangaleshwaran in Mumbai.

Trying to build a car cheap enough for motorcycle buyers seems to make sense now but
seemed crazy several years ago when Ratan Tata, longtime chairman of Tata Motors and
scion of the nation's giant Tata Group conglomerate, first mentioned his dream of building
a one-lakh car in 2003. "They are still saying it can't be done," he says, insisting that it can
and will. "Everybody is talking of small cars as $5,000 or $7,000. After we get done with it,
there will hopefully be a new definition of low-cost.”

Many low-cost car producers have set up shop in India, and McKinsey believes it could
become a global hub for small-car production the way the U.S. is for pickups. Hyundai
and Suzuki (other-otc: SZKMF.PK - news - people ) build their small cars in India, and
Toyota is considering an India hub. Passenger vehicle exports grew by 13% last year to
192,000, according to J.D. Power and Associates, with Hyundai exporting more than
110,000. A one-lakh car is unlikely to be sold in the U.S. But it wouldn't be aimed only at
India, either, Ratan Tata says. Bottom-of-the-pyramid markets would be the best fit: places
like Africa, Southeast Asia and maybe eastern Europe and Latin America,
Wherever income levels mirror India’s.

The cost target is tough, but there are plenty of other hurdles at home. India's inadequate
roads, for one. Roads and highways are being built nationwide, but if India goes car crazy,
maddeningly slow traffic is inevitable for several years. By far the biggest struggle in India
is political. The People's Car factory is already caught in the crossfire, as politicians and
pressure groups squabble over forcing destitute farmers off their land for a project
expected to bring 10,000 jobs to industry-hungry West Bengal. The company signed the
final deal with the state last month and has begun the property's boundary walls, land
leveling, and road and building plans. "We've lost four months," says Ratan Tata. So far.

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He is still personally driving the People's Car project. It is a rear-engined, four-door, four-
seat car that will get around on 33hp more pep than the Model T or the VW Beetle had
when they drove onto the scene. The cheapest versions won't have air-conditioning or
power steering, but Tata hopes its cute looks will make up for missing creature comforts
just as happened with the VW Beetle and the Mini long before it.

Tata Motors has not released a photo of its prototypes, but Ratan Tata, a trained architect
with a penchant for designing consumer goods, sketched its outlines for a reporter's eyes
only. He drew an egg-shaped car with a ceiling high enough to handle his tall frame. He
pointed proudly to the air intake scoop in front of the rear tires and the vertical taillights
similar to those found on the Tata Indica. Under the front hood it will have a small storage
space, "like an overhead bin" on an airplane, Tata says. "It is not as small as a Smart," he
says. "It is not a car with plastic curtains or no roof it's a real car."

TATA NANO - THE LITTLE CAR THAT MIGHT


CHANGE THE WORLD

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TECH SPECS:
Length : 3.1 m
Width : 1.5 m
Height : 1.6 m
To seat :4
Engine : 643cc, 2-cylinder, all-aluminum
Power : 33 BHP
Position : Engine, battery at rear end
Boot : In front
Fuel : Petrol
Fuel injection : MPFI
Fuel consumption : 20 kmpl.
AC : Only in deluxe version
Passenger side mirror : No
Power steering : No
Price : $2500 at dealer + VAT + transport cost. Base version
approximate on-road price: $3000
Tyres : Tubeless tyres.
Body : All-steel
Safety features : Crumple zones, intrusion-resistant doors, seat belts,
2 A-Pillars
Suspension : Independent front and rear

Seldom do we see cars that rewrite the history books even before they are seen running
around on the roads. And hardly ever do we see cars that vow to put the nation on four
wheels. The Tata Nano is one such car – a car that has been in the news for quite a few
years, for reasons good and evil. Nano is a car which has breathed into life due to one

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man. Give credit to Mr. Ratan Tata for his determination to build a low cost family car that
has come true, finally! Took long it did, but the Nano came in a beautiful form. Touted as
world’s cheapest car by a far cry, Nano has been the talk of the town around the globe.
Head honchos of big organizations have been pouring in by numbers to have a look at
this engineering masterpiece. We bring you some interesting bits.

Looks:

Numbers first.
Length 3100mm
Width 1500mm
Height 1600mm
Wheelbase 2230mm.
Ground Clearance – 180mm

You will be wondering why I am talking about the dimensions of the Nano, since all of you
know that it is a rather compact and tiny machine. It is because I have good reason to talk
about the dimensions. You see, the Nano is going to be faced with Maruti 800 as its main
rival. But you could throw in the Alto and Zen Estilo to mark out some design and
packaging aspects. Just to get things in perspective, Nano is over 230mm shorter than
800 in overall length but the wheelbase advantage of 155mm over the offering from Maruti
makes sure that the Nano is more accommodating than the 800. Tata has managed to
squeeze out a 60mm advantage in width and Maruti 800 falls short of about 100mm in
height. So in essence,
you get more legroom, better shoulder room and room more than enough for a turban, if
you wear one! But before you enter inside, you are bound to gape in admiration at the
beautifully crafted curves of this micro car. I personally feel that the front has a lot of Zen
Estilo written on it, but manages to look really funky and cool.

The mono-volume design establishes a sea of change from the two-box layout of the 800.
What it ensures the Nano with is extremely short overhangs and tight packaging. For a
car of this size and image, the Nano is an extremely sexy looking car with futuristic design
cues. The bonnet line is steep and unites together with the bumper in a seamless way.
Though there is no ‘grille’ per se, the front has a smiling look which accentuates the

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‘happy’ feeling. The fog lamps are incorporated in the bumper which has a distinct air dam
running across in between them. In profile, the Nano resembles Mitsubishi’s latest small
car ‘i’. The rear of the Nano is somewhat recognizable. The tail lamps are inspired from
elder sister, Indica. So this is a very compact hatchback, yes? No my friend, you are
massively wrong. Even I was dumbfounded when I discovered that the Nano cannot be
called a hatchback – a word so true to the way the small cars are. The reason for this is
because it does not have a hatch! The tail gate cannot be opened owing to it being joined
together with the boot sill. This makes accessing the engine a pain in the bottom. But a
hatchback it will be called still. The back side of the Nano is made attractive by the mid
mounted exhaust pipe which peeps out of the aggressively designed bumper.

The ultra-secret people's car for India - the Tata Nano - is here. How
will this car change the way India, and the developing countries
drive?
• It will help India's huge two wheeler popular upgrade to a four-wheeler
• Very affordable - priced a bit higher 2 125cc motorcycles in India

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• If popular, will clog roads in the cities


• Establish a huge volume market that cannot be ignored by any large car
manufacturer
• 40 patents by Tata Motors during development

Here are the pictures from the unveiling of the Tata Motors' small car to be sold at a price
of US $ 2500 approx. (Rs. 1 lakh.). The Tata Nano was unveiled at the 9th Auto Expo in
New Delhi, India.

The Nano is disruptive tech - make no mistake.


The world's car manufacturers have expressed all shades of opinion in the run-up to the
Tata Nano. Suzuki has said that it is impossible V W said it is not what they want to do.
DaimlerChrysler said they think it is an important market Tata is trying to tap.
There was no way Tata could design a car the conventional way. So went at it on a clean
slate. And seems to have pulled it off. The rear engined car will have a small boot for
luggage storage in the front. In the process of developing the Nano, Tata Motors has
added 40 patents to its kitty.

This car, if it becomes a hit, will make every auto company change the way it works
and look at the volume market. Not only in India, but in entire Asia and every third world
country. Offering mobility for the masses is big business. The VW Beetle did that, and so
did Henry Ford.

Environmental Impact
In India, a car like this can crowd the streets, forcing the government to improve
infrastructure - and as the evolution of the Western industrial society demonstrates,
affordable cars can be a major force for change. But till that happens, this is a car that can
seriously crowd the streets - and make life a bit tougher in the short-term.

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The car will have a two-cylinder 624-cc petrol engine with 33 bhp of power.
It will also have a 30-litre fuel tank and four-speed manual gearshift. The car will come
with air conditioning in the deluxe version, but will have no power steering. I know, that's
pathetic power by American and Western standards. But Indian maximum legal speeds
are way lower than them - and Tata Motors anyway claims that the car is as fast as the
Maruti 800, India's original People's Car that changed things a couple decades back. And
there are a million or more of them on the streets of India already. The car will have front
disk and rear drum brakes. The company claims mileage of 22 kmpl in city and 26 kmpl
on highway.

The $ 2500 is the dealer price - the actual price on the road might be approx Rs. $3000.
The car would be commercially launched in the second half of 2008 and would be
produced at the Singur plant in West Bengal.

The car launched is being avidly watched by the auto industry around the world.
As attractive as the Nano is on the outside, the same cannot be said for the interior. The
plastics feel cheap and it is here that you begin to feel the concern towards the price that
Tata was aiming at. The rudimentary knobs and switches point towards the use of
materials which would be better off in tractors twenty years old! Dreary and uninspiring by
any measure, that’s what one can say about the interior quality and looks. What
impressed me though was the layout. Spacious and functional, the dashboard has a
curved look which can prove beneficial when it comes to storing items. The Chevy Spark
started it for the small cars and the Nano continues on what seems to be the current
trend. The instrument binnacle is mid-mounted and the centre console has a swooping
form which houses all the important knobs and air con vents. Speakers for the audio
system have been incorporated on the rear bench just under the seat area.
The speedo is calibrated to a top whack of 120kmph though we shall reserve our
statements on that till we test the car thoroughly. Cash saving activity has gone a bit too
far with the sun visor, there’s only one! Please Tata, please, have mercy on the people
who will sit on the passenger seat, only to find no sun visor to protect their skin from sun
or no vanity mirror for women (men too, going by the current fashion!) to put the make-up
on. The centre console, forming a crest in the middle of the dash, can be worrisome if you
happen to be as tall as Rajpal Yadav. The seats have integrated head restraints, like in the

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hugely popular, Hyundai i10. Yes the Nano will be deprived of a lot of creature comforts
but to satisfy your salivating mouth, Tata will offer the top end version with air con, power
windows and power steering. This car is destined to be exported too, so provision for ABS
and airbags will also be there for sure. The floor mounted four-speed gearbox wasn’t
smooth as silk but would give the 800 something to take inspiration from. Roominess is
what this compact car from Tata is all about. Four average sized Indians will find
themselves enjoying their ride.

SAFETY
Passes crash tests. Side impact test yet to be done, but Tata is confident about it. It has 2
A-pillars on one side to better meet safety norms. No airbags. Airbags are still not a
required feature in India. But you have crumple zones, intrusion-resistant doors, seatbelts
and anchorages.

A four wheeler is safe than a scooter. So to begin with, the huge two wheeler population of
India gains a safety benefit. But will it pass the safety requirements of a large car or even
a high technology compact? Unlikely. But that is not the objective - it is to improve the
safety of four-member families like this one that rides scooters and at risk every day.
And so here it is. If Tata Motors is right, we could be witnessing a serious disruptive force
and one that might kick-start India on to a high growth path. Successful mass market
mobility does that to a country.

MECHANICALS:
Everyone, and it does not discount the motoring journos, expected the ‘One Lakh Car’ to
have a plastic body. But boy did Tata play it big there! Contrary to everyone’s belief, the
Nano is a metal-bodied car with four full-blown doors to ease the ingress and egress. This
is a uni-body construction but makes use of a sub-frame which adds to the strength in
addition to providing support for drive train and suspension units. The suspension has a
story of its own altogether! Well, Tata engineers said that since the rear-biased weight

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distribution led to some scary moments while testing the car, they had to optimize the
suspension setup and add a fair amount of other eccentric but equally helpful technical
add-ons like fatter rear tyre while the battery box and fuel tank are placed right
underneath the arse of front occupants.

The engine is what has been the buzz word around the car. It is an all-aluminum two
cylinder engine displacing 624cc with two valves per cylinder driven by a single overhead
camshaft. The bore and stroke are nearly similar giving it a ‘square’ form. Making the
Nano move will be the power of 33 horses which will peak out at 5500rpm while 48Nm of
turning force will be supplied at a meager 2500rpm which should help the drivability of the
car. The Nano will transmit its small amount of power via a 4-speed cable operated
gearbox with the fourth being an overdriven ratio. Tata is working on developing an
automatic gearbox as well but that will not be available when the car gets launched later
this year. In addition to the 624cc petrol engine, the Indian auto giant might also bring out
a common-rail diesel engine (700cc) which might be of the same architecture as the one
seen on Tata Ace.

As it was famous, Tata’s One Lakh Car will not exactly be that. Not a one lakh rupee car it
will be. The base version, when it will come to a parking halt will see you shed close to
1.2lakh while the one which will sit in between with some necessary creature comforts will
be priced in the vicinity of 1.5lakh. The top end might retail for close to 2.0lakh, we
speculate.

Quick Specs:
Price : 1.2lakh onwards
Engine : 624cc, in-line, twin-cylinder
Power : 34PS@5500rpm
Torque : 48Nm@2500rpm
Gearbox : 4-speed manual, Cable operated

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Top Speed : 95-100kmph (Speculated)


Fuel Efficiency : 20kmpl (claimed)
Length : 3100mm
Width : 1500mm
Height : 1600mm
Wheelbase : 2230mm
Ground Clearance : 180mm
Fuel Tank Capacity : 15lt.
Kerb Weight : 600kg.

LATEST NEWS
Tata Motors takes forward its initiative to support primary and secondary
education in Singur

Taking forward its initiative to support the cause of primary and secondary school
education in Singur, Tata Motors today helped a primary school in Joymollah upgrade its

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infrastructure. The company provided desks, benches, chairs, tables, cupboards and
electrical fittings in addition to educational and sports material to the school, in the
presence of school authorities, officials from the panchayat and local administration, Tata
Motors' officials, school students and residents. Tata Motors had flagged off its education
initiative with a similar activity in a primary school in Ruidaspara, Beraberi recently.

As part of its initiative, Tata Motors recently set up a computer laboratory in a high school
in Beraberi, and has provided 5 computers, 5 CVTs (stabilizers) and 5 computer tables
and chairs to the school. The computer laboratory was inaugurated by Mr. Prosenjit
Chakraborty, Block Development Officer. The company has planned similar programmes
to upgrade school infrastructure in the project area.

This initiative is part of Tata Motors’ comprehensive community development programme


for Singur, in line with the company’s practices in other locations. The three focus areas in
Singur are – Health, Education and Livelihood. The programme includes: a) training,
according to an individual’s educational qualifications and skill, to improve their
employability; b) training women for employability – through facilitation of cooperative
societies – to produce a diverse range of items, which could be used in the Tata Motors
plant or the vendor plants; and c) social development in the Singur area, through
community centers, and support for primary health, provision for drinking water,
primary/secondary education and adult education.

As part of its health initiative, Tata Motors has been regularly conducting health camps in
Beraberi and Joymolla, where patients receive treatment and medicines. Till date, over 54
health camps have been conducted, where over 10,170 villagers were treated.

Tata Motors recently inducted a batch of around 100 youth as apprentices at the Singur
plant. This batch comprises youth from Singur villages and from various ITIs of West
Bengal. 16 local youth, educated in state-run Industrial Training Institutes (ITI) have been
appointed as employees at the Singur plant from October 2007. 300 others are
undergoing training. On successful completion of the training programme, the trainees will
take the trade tests to qualify for trade certificates issued by the National Council for

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Vocational Training (NCVT) and will become eligible for apprenticeship training at the
Singur plant and vendor facilities.

Tata to ride Nano to Geneva Motor Show


Tata Motors' Nano, easily the world's most talked-about car these days, will make its
international debut at the 78th Geneva Motor Show in the first week of March. The five-
door hatchback that costs just Rs 100,000 ($2,500), making it the world's cheapest, was
unveiled in January this year at the Auto Expo here. Nano would be among Tata Motors'
exhibits at the show, a company spokesperson said here.

Sales of Nano, nicknamed the people's car for its affordable pricing that will make four-
wheelers available to millions of middle-class people who hitherto rode two-wheelers, is
expected to start in the second half of this year.

Although the car has its share of critics, it has undeniably put India on the global
automotive map and has triggered a race among leading car makers to match the Nano
price-point. Already, car manufacturers Renault and Nissan are eyeing a $3000 car.

The Nano, which Tata Motors has said meets all safety and emission norms, will share the
limelight with top marques from around the world that are expected at the show. This
year's edition of the Geneva Motor Show will mark the 11th year of participation for Tata
Motors. Tata Motors' Nano, easily the world's most talked-about car these days, will make
its international debut at the 78th Geneva Motor Show in the first week of March.
# Source :The Economic Times — February 7th, 2008

What gave Nano a headstart ?

The Nano could potentially challenge the conventional wisdom within the auto industry
that wholly new concepts do not live long enough. New launches basically add a whistle
here and a bell there to the plethora of existing models. Indeed, in more than 70 car
launches worldwide, there have been not more than a handful of seminal shifts within this

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industry.

But the Tata offering has come to topple all those casts by reordering the status-quo. The
whole story seems to strike two notes at once. The first one is true to the old adage
among businesses that the wise profit from giving that which profits their customers; the
second dares to contrarily create and nurture a space that others overlooked or even
rejected.

Some known facts


Not too long ago, many pundits within the industry had held that small cars such as the
Maruti 800 have outlived their use and must, therefore, pack up. Yet, just into 2008, a
glowing Mr. Ratan Tata drove on to the stage in his Nano, that sports a far lower powered
engine and which may soon storm the Indian roads.
Surprisingly, many of the same pundits who had bemoaned the twilight of Maruti 800 have
now begun to celebrate the business sense that the Nano exudes. It looks like, in any
case, the Tata Nano project has defied textbook constructs of successful venturing.

In fact, we knew for good reasons that there is much less money to be made in small
cars. We also knew that products conceived for specific markets have less possibility of
success than those visualized on a global basis.

And, admittedly, auto majors with a wider, deeper portfolio of cars are rightly believed to
be able to gain more profitably from a radical but relevant offering.
Such manufacturers, it is often acknowledged, are able to reap from the economies of
scale that can be got from sharing the costs of design, manufacture and retail, among
their entire product line-up.

Small-car concept
The Tata project bore none of the above usual stamps of success. Yet it is pretty hard to
term Nano anything but a success going by the reception it received. This perhaps
indicates that the real game is one of strategy.

Indeed, it is not so much about cars or of experience as about getting clear the underlying
concepts and attitudes. Ironically, Tata's capture of the "small car concept" is in itself

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hardly path-breaking.

One recollects that when the Maruti 800 was introduced around the mid-1980s, it was,
even after adjusting for the then stronger rupee, an immensely affordable car (well below
a lakh of rupees). It was, in fact, India's first small, sweet car.

But, over time, the sweetness of Maruti 800 - rather than the real demand for small cars -
had diminished. That was primarily because of its price, which kept on surging.

What is certainly path-breaking is the price tag of the Nano. Even if we went all the way
back before all those price rises and income growth spread over the past two consecutive
decades, Nano's price would have still generated a landslide sales record in the mid-
1980s.

The price element

And, what is important is, where a pre-liberalised mid-1980s represented stunted buying
power, "today's India" that is to receive the Nano, represents greatly enlarged buying
power.

This, in effect, gives the Nano an exceptional welcome thrust. Besides the element of
price-point - where Tata Motors led the pack on a wide margin - almost every other major
car company in the world seems to have otherwise just as seriously investigated small
cars.

If anything, notwithstanding the environment dimension, the persistently high oil prices of

the present decade have, in fact, made all makers gravitate toward more fuel-efficient,
smaller cars.
The key question, then, is: With so many auto firms zeroing in on small cars, how did Tata
Motors achieve such astounding price levels? Indeed, when global industry majors were
talking about a small car with trendy, tiny engines, they were all, in effect, attempting to
scale down on what they were traditionally good at: Medium and big cars.

Two perspectives

Unlike Tata Motors, almost none of the global majors had paid due attention to the thought

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of an all-new small car. There is, for sure, a big difference between scaling down a big-
sized car to a viable small size and creating one ab initio.

The gamut of idea generation, concept, design, making, retailing, and so on, differs a
great deal between the two perspectives. The first perspective tweaks to fit what is
already on hand, whereas the second creates afresh to fulfill what is widely sought.

Consequently, the processes that colour the making of an inexpensive and cheerful car
are not at all 'cheap'. Understandably, those processes have to be richer in innovation,
bolder in imagination, nimbler in evaluating and, of course, shrewder in putting together
the pieces (ideas, hardware, and costs) appealingly.

Taking the lead

The stalwarts of the car industry never quite saw 'small cars' as 'small cars'. Here is where
Tata Motors strode ahead, giving Mr. Tata and his team a head-start. The Nano, then,
brings home the truth that lacking certain advantages can actually prove more rewarding.

The car industry, unlike the insurance industry, which enjoys safety cover from
reinsurance, has never been able to obtain a guaranteed cover for assured success.

One could say that the future Nanos would certainly get their shots of incremental
improvement. So, too, would be the approaches of many other aspiring small-car makers,
after taking note of this primordial shift.

although it is a little too early to be looking for it in the rear view mirror!
# Source : The Hindu Business Line — February 5th, 2008

The man and his dream machine

Mr. Ratan Tata, a shock of grey on his head, a grim look on his face, shuns the limelight.
But on Thursday, the industry patriarch perhaps did not mind the thousands of flashbulbs
that popped in his face as the world took its first look at an astonishing Tata product: the
Nano. His usual taciturn expression gave way to a smile as he threw a repartee at the

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environmentalists for their worries that the Rs 1 lakh "people's car" would add to India's
emission woes.

Ratan Tata's quiet moment of triumph was deserved. Despite being born to luxury, he had
felt for the Indian family, riding four to a bike. Their dream machine-his dream machine-
was here now, having weathered the odds and the critics' pessimism. To top it, there
came news that the Government had allocated spectrum to his companies to operate
GSM mobile services, a moment that harkened back to bitter wrangling with established
GSM players.

The initial response to the Nano has been overwhelming and the tiny, Noddy-land car is
expected to help the company cross several milestones. With revenues at Rs 1,29,994
crore for the financial year 2006-7, and group companies enjoying a market capitalisation
of Rs 2,51,487 crore as on January 10, 2008, the Tata Group is on a strong footing,
contributing more than 3 per cent to India's GDP. Nano, being the world's cheapest car,
has made international players sit up in amazement and the company has received
proposals from some African, Latin American and Southeast Asian countries to
manufacture the car there.

The Nano will make millions of Indians mobile. But then, that has always been a Tata
specialty: over the 138 years of the company's existence, it has been helping India propel
itself forward. It is emblematic of the company's own recent push to become a proactive
corporate mover, not the stolid doer it had been for generations. The acquisition of Tetley
in 2000, the takeover of Corus to become the fifth largest steel company in the world and
upping its stakes to become the frontrunner in acquiring the Jaguar and Land Rover
brands from Ford, all make a statement for Tata as a company on the move.

When Tata Tea bought Tetley, it made big news as Tetley was a much bigger company.
Similarly when Tata Steel took over Corus, it did so without a hint of corporate
bashfulness. When Tata Tea bought 30 per cent stake in Glaceau, it was looking for the
international marketing acumen of the company to leverage for Tata Tea. But then with
another company acquiring the majority stake in Glaceau, Tata was left with no option
than to book the gains of its investment in Glaceau. But there was still a footnote to the

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episode and it stated that the Tata Group was aggressive about going global.

The importance that the economic community puts on the Tatas is evident from the fact
that three group companies form a part of the Sensex, the most to represent a corporate.
RDAG (Reliance Dhirubhai Ambani Group) is represented by two companies in the
benchmark stock market index. The combined weightage of the market cap of the three
companies in the Sensex is 6.4 per cent. Tata has 13 other listed companies, excluding
the three that are a part of the Sensex.

The future of the group will be defined by some of its flagship listed companies-TCS, Tata
Steel, Tata Motors, Tata Power, Tata Teleservices and by Tata's venture into financial
services with Tata Capital. In the current market scenario, not only does Tata Motors stand
tall after the Nano, but Tata Steel, on the back of growing demand for steel and rising
metal prices, is also strongly positioned.

Power is the buzzword in Tata circles these days. Tata Motors has bagged the Mundra
Ultra Mega Power Project and there are other projects to be undertaken by the company.
As for its finance company, the entity Tata Capital has three companies within it, Tata

AMC, Tata AIG Insurance and Tata Investment Corporation. As and when Tata Capital
gets listed, it will unlock a lot of value for the company.

How the company moves ahead will depend a lot on who takes over from Ratan Tata, a
bachelor. Retirement, though, is not what preoccupying Ratan Tata’s mind is. In fact, he
has another dream-for himself and his countrymen: availability of clean drinking water. He
has already put his scientists on the job of finding the cheapest method of purifying water
for drinking.

The company has had a strong inheritance line and that has been an important aspect in
the continuous evolution and growth of the company. Ever since Jamsetji Tata established
the first textile unit in 1870, the company has rigorously moved ahead. Dorab Tata
established Tata Steel and Tata Power and took the Tatas into new segments of operation.
Then came the aviation pioneer JRD Tata, who brought commercial aviation to India
under the name Tata Airlines, later nationalized into what became Air-India. He also has to

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his credit the tea business, hotels, trucks and locomotives, among others.

The latest in the line of Tata patriarchs, Ratan Tata has not proved less than his
predecessors. He was instrumental in producing India's first indigenously designed and
manufactured car, the Tata Indica, a new version of which was released a day before
sibling Nano took centre stage. He has shown the aggressive face of the Tatas-as the
acquisitions that it has gone for and successfully completed. And now he has delivered on
his promise of launching the world's cheapest car. While Ratan Tata is around, surely
there will be little talk of a successor.

SUMANT BANERJI

The people's car, also the cheapest in the world, is here with us and as we write this, it is
being scrutinized by millions across the world. But not many know that the Nano is not
only a work of art perfected by 50 engineers in Tata Motor's plant in Pune-the character of
this low-cost, cute-looking, four-wheeled vehicle has the stamp of Ratan Tata all over it.

It was Tata, a trained architect himself, who wanted a car tall enough to hold his 6 ft tall
frame. People say he once joked in the factory that he wanted to drive the car himself at
the launch. That is how the car gets its tall boy looks.

When the company was looking to cut costs, it was Tata who suggested the Nano have
one windscreen wiper instead of two. The original blueprint for the design of the car,
prepared by Italy's Institute of Development in Automotive Design-which had also
designed the Indica over a decade earlier-had a more sedate-looking car. Tata, with his
eye for detail and aesthetic sense, made it look more revolutionary and, few will deny,
more likeable. Along the way, it became less expensive as well.

But the Nano is not a story of one product. It is not a story of Ratan Tata's long pending
dream. It is a story of the journey of Tata Motors itself. As the Tata patriarch himself
admitted after the unveiling, it was the Indica that was a bigger risk. For a successful
company. Nano is a means of achieving an ambition, not of survival.

In many ways, the Nano story starts in 2000. That was the year when the company,

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despite its Indica, faced losses for the first time in its 55-year history. An economy that
was in decline resulted in the company's turnover receding by almost 9 per cent in 2001.

Till then Tata Motors was the face of the Indian highways. Its sturdy trucks and buses
were as ubiquitous on the dusty landscape as the roadside dhabas. The company was the
unchallenged leader in the auto industry with an over 65 per cent market share.

Things changed after 1992, when globalization stepped in and Tata found itself wanting. A
spate of technological joint ventures followed, first with Cummins Engine Co and then with
UK's Tata Holset Ltd and Tata entered the passenger car space with the Indica in 1998.
The idea then was to entrench itself in a widely changing industry but the crisis at the turn
of the century proved that Tata was in trouble. In 2000, Tata Motors was a bulging, slow-
moving auto giant all set for decay.

The company went back to the drawing board and the commercial vehicle division was
the one that saw the first change. The head of the division, Ravi Kant (the current MD),
decided to revolutionize the flow and inject young blood. Instead of depending on the grey
heads, he asked the engineers to show the way. The solution he had in mind was to cut
costs.

It was in those times of distress that a saviour in the form of Girish Wagh emerged. Wagh
was given the responsibility of a project so risky that at that time only a young man could
have taken it. It was to build a small truck that would ensure last mile connectivity.
Something that would work where the traditional trucks stopped. Today we know it as the
Tata Ace - a mini truck that was such a runaway success that even passenger cars paled
in comparison.

Ace's success convinced Tata that a small car built frugally but practically, would sell.
"Nano was a concept that was in Tata's mind even as Ace was being developed. In many
ways it is a precursor to Nano and its success convinced him of its salability an important
facet for a listed entity with shareholders riding on it," said a Bosch official, the
company that supplies Nano engines.

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Wagh was the obvious and automatic choice for Nano as well. By the time Tata
announced his wish to make a small car in 2003; the company was back to its money-
making ways. After that slump in 2001, the company's revenues went up in 2002-3 and by
the next fiscal, the turnaround was complete.

"In many ways I was more nervous with the Indica. That was a time when we were getting
into a completely new area of passenger cars. Our CV business was also not in great
shape. So there was pressure," Tata himself admits. "Now both our divisions are doing
Well and making money.”

But unlike the Ace, which had to be small and not necessarily inexpensive, Nano had to
be both. Wagh knew that as the company challenged its own limitations, its component
suppliers had to do the same. "The Nano was as much a dream for us as it was for our

suppliers. They have challenged their own capabilities and have helped us in no small
way in realising our dream," says Tata Motors Managing Director Ravi Kant.

The engine, alternators, management systems and brakes come from Bosch,
transmission comes from Birla's Avtec Ltd, steel from its own Tata Steel, castings from
Tata Metallic, headlights from Lumax and batteries from Exide. All these components are
different from the standard ones fitted in other small cars and the companies have made
concessions and spent extra hours on R&D for the dream car. Some do not even expect
to make money with the association.

"Our association with the Nano project is more notional. We do not have major margins
and will start making money only after 1-2 years," said P.K. Kataky, Director (Automotive),
Exide Industries Ltd.

The challenges did not end with the product alone. In the wake of controversy surrounding
the policy on SEZ, Singur in West Bengal, the site for the Nano factory, became a rallying
point for protestors. Tata had won the technological battle but a political one still stared it
in the face.

Tata lost over four months and there were anxious moments when company officials

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sometime thought aloud if the project should be shifted. A belligerent monsoon last year
did not help matters either. The low-lying factory site was flooded and work had to be
stopped. "Thankfully we had not placed any equipment at that time or the loss and the
delay would have been greater," says Tata. With the passage of time, both the opposition
and rain water receded.

The dream came to the fore four years ago but no one knows how cherished or long
standing it is for Tata. The sense of relief on his face was palpable and as he stood
addressing the world with the car in the background, he looked the youngest 70-year-old
ever.

Ratan Tata's dream has stepped out of its private domain and is awaiting mass approval.
If it comes, Tata Motors will have well and truly arrived.

# Source : As published in the Indian Express — January 13th, 2008

The making of a modern classic


When Tata engineers began making the Tata Nano, it was seen as an act of
faith; what they have accomplished is an act of courage.

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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.

Classic cars down the years. Top to bottom: Ford Model T(1908), Volkswagen Beetle
(1938), Morris Mini Classic (1958), Swatch-Mercedes Smart (1998), Tata Nano (2008)
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 fulfill 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 realize then that
the next four years of their lives would be dotted with moments of agonizing 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.

Jai Bolar, senior manager for development at Tata Motors’ ERC, recalls that the team
entered the conference room armed with just a 60-slide presentation on all the low-cost
modes of personal transport. The vehicles included motorbikes, auto rickshaws, scooters

and the company’s own Indica. "We had no clue as to what we were supposed to do,’’
says Bolar.”So finally, we asked him whether he could tell us what he had in mind."

The next few minutes will, forever, be imprinted on the team’s mind. Tata, or RNT as he is

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affectionately called, held forth, exhorting the team to dream of building a low-cost car that
would cost only marginally more than a two-wheeler and revolutionize personal transport
in India. Show the world what Indian engineering is truly capable of, RNT told the
engineers. "Make me also part of the team. Only in a country like India or Pakistan can a
low-cost car be made," he insisted.

The motivational talk worked. "We came back from the meeting all charged up,’’ says
Nagabhushan R. Gubbi, head of engineering for passenger cars. Gubbi did not know, nor
did the others, that they had just been impelled by arguably India’s most visionary
businessman to create history.

Spluttering Start

The idea stage: An early vehicle layout for the occupants the team made little progress
over the next year and a half. It tried to source parts from around the world, even toyed
with the idea of an open car with plastic or canvas sheets for protection. The problem was
it was still thinking of making the motorcyclist safer. Two-wheelers continued to overtake
the image of a car in their minds.

"The biggest challenge when the project started was there was no brief, no benchmarks,
and it had never been done before," says Bolar. Even RNT had only the disturbing image
of a family of four riding a scooter on wet roads and an unclear dream to help such
families as benchmarks.

In August 2005, Girish Wagh, an easy-going, but intense 35-year-old with a reputation for
building teams and trucks, entered the scene. Wagh, a mechanical engineer by training,
had just helped build the runaway hit Ace. He arrived at a time when the first ‘mule’ was
ready. A mule in auto parlance is a vehicle that comprises the engine and transmission,
driving a mock-up addled with electronic sensors. It moves like a vehicle just for testing
purposes. The first mule had a marine engine that delivered 20 brake horse power (bhp).

Cranking Up

At Tata Motors, Jain is regarded as a pioneer. He is credited with the first gasoline engine
that Tatas made. For two years, Jain scoured the world looking for an engine that could fit

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a small car. He even tried motorcycle engines, but finally decided that RNT’s common
man would need an engine not yet invented. Jain then went to work with a clean sheet of
paper. He started off designing a small engine that would deliver 20 bhp, but realized
midway that it would not be enough. So he increased the engine’s capacity to 554 cc,
which delivered 27 bhp.

The engine still did not have enough zing and its driveability was not satisfactory. So, Jain
redesigned the engine and increased its capacity to 586 cc. That appeared to be peppy
enough and satisfy all parameters. The team, swelling in number as new tasks were
incorporated and specialists taken on, was working to meet three parameters —
acceptable cost, acceptable performance and regulatory compliance, not only current but
also future.

While Tata engineers worked on the engineering of the car, Italian design house I.D.E.A.,
which also designed the Indica, was chartered with styling. Guided by RNT, the styling
kept changing. Though in an interview with BW, RNT underplayed his own role in the
design, Wagh says he was intimately involved in the styling and made some alterations
even a few days before the launch. "Mr. Tata was present at every testing and he made all
the decisions," Wagh says. "He was very focused on what the customer would like."

In December 2005, the second mule was tested, and by mid-2006, the first prototype or
alpha was ready. After testing the prototype, which ran on the 586-cc engine, the team
found the vehicle wanting. "We felt it needed to be longer," Wagh says. "RNT wanted
changes in styling, which meant changes in body design, which increased safety
performance." It was decided to increase the length by 100 mm. It meant redoing
everything that was done until then. The team was back at the drawing board.

Beat But Not Beaten

That the project did not have any specifications, and was never tried before, worked both
in its favor as well as against. With only three parameters to guide them, the engineers
kept coming up against failures. Jain says the biggest support from the management was

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not to hold a failure against anyone. "The hardest part was continuing to believe we could
do it," RNT said. "I never felt the project won’t go through. I was scared I won’t meet
Target- price targets, time targets the auto expo…”

Bolar says that since there was no precedent to the project, everybody had a number of
concepts. "The management remained open, but the most challenging task was to define
the specs," he says. The Maruti 800 was the only benchmark to go by. And it cost more
than Rs. 2 lakh on the road.

As the team struggled with constant change, which often put them at their wits’ end, RNT
and Tata Motors Managing Director Ravi Kant played a key role in preventing creative
fatigue. "We were like a football team," says Gubbi. "The leadership was where the ball
was. Everyone was playing for everyone.”

Ravi Kant put in long hours of work and was always available to take decisions, monitor
progress and keep the team motivated. "We exposed our people to products of
competitors by tearing those products apart and analyzing the good and bad and
comparing them with our own, thereby making people see why customers buy someone
else’s products rather than ours," Ravi Kant told The McKinsey Quarterly in a recent
interview.

Abhay M. Deshpande, general manager for vehicle integration, says though there were
time and cost pressures, the collective leadership kept the engineers completely insulated
from them.

Sometimes the work was repetitive and tedious. In designing the engine, Jain did 150
thermodynamic simulations, each of them stretching eight to ten hours. Body systems
expert R.G. Rajhans, who had built the body of the Indica and also the new Indica, had by
then built about 10 different floors for the car.

Finally, in October 2006, Jain hit upon an optimal engine design. His creation had a
capacity of 624 cc and squeezed out 34 bhp of power. "It was the first time that a high-
pressure die-cast engine was made in India," says Jain. In comparison, the first Maruti
800, which was powered by a 796-cc engine, delivered only 37 bhp.

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Jain’s computer prototype was cast into a real engine in January 2007, when it was first
fired. With a multi-point fuel injection system developed by Bosch calibrating the gasoline
flow, the heart of the car was ready. Jain filed 10 patents for the engine. By the time the
car was finished, the company had filed 34 patents in all; and some more are in the
pipeline.

An Idea Is An Idea :

Often ideas came from unexpected sources. The team was struggling to reduce the cost
of seats while complying with safety norms when RNT, a passionate pilot, who often
shuttles between Mumbai and Pune by a chopper, had a brainwave. He thought the
reclining and sliding mechanism of helicopter seats could hold a solution for the Nano.
The engineers at Tata Johnson studied the mechanism and designed one for the car. The
window winding mechanism of the car was also inspired by helicopter windows and done
by IFB and Shivani.

The manufacturing team also introduced pokayoke, a Japanese term for mistake-proofing.
Mirasdar, who made the prototypes, almost always had a suggestion that would end up
reducing costs and simplifying processes.

Sometimes the cost reduction was so drastic that it surprised the engineers themselves.
"We found that the door handle of the car had 70 per cent less parts than one of the
cheapest European cars," says Mital. After the engine design was frozen, things began to
fall in place. The dimensions had been fixed and the layout of the transmission finalized.
Sona Koyo and Rane Group came up with hollow steering shafts, saving cost and cutting
weight. Sharda Motors and Emcon designed the exhaust system and MRF tweaked the
tyres to bear extra weight on rear wheels.

"At every stage, we tried to cut costs by reducing the number of parts that went into each
component,’’ says Wagh. As the team succeeded at this, they began to see the
"impossible" dream morph into reality. But outside the factory, skepticism and discontent
were growing.

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Revving up:

As the car got closer to completion, the media, including BW (see ‘Tata’s Small Car, 1
Lakh Unanswered Questions’, BW, 6 August 2007), started speculating. Many reports
were cynical; some were guarded, as if leaving room just in case they were proved wrong.
Environmentalists such as R.K. Pachauri of The Energy Research Institute and Sunita
Narain of Centre for Science and Environment began raising concerns about
how a million small cars would impact urban congestion and air quality. But Tata was privy
to information that his car had survived a frontal crash test and met Euro IV emission
norms several months ago.

Japanese auto giant Suzuki, which makes the ubiquitous Maruti 800, also spoke out with
derision. "What is it going to be? A three-wheeler with a stepney?" Suzuki’s Founder
Chairman Osamu Suzuki had quipped when Tata announced the project. In February
2006, Suzuki again took a shot, saying that it was impossible to make a reliable car for
Rs. 1 lakh.

But within a year of Suzuki’s comment, the Tata team had reason to pop the bubbly. A
beta prototype was ready by the middle of 2007 and to maintain secrecy, it was tested at
foreign locations, such as test tracks in Germany and the rough terrains of Australia.

Just about 10 days before the Auto Expo at New Delhi’s Pragati Maidan where the car
was to be unveiled, RNT joined the team in Pune. He camped there until the launch,
overseeing the finishing touches. He personally drove it, and made several last-minute
changes, including changes in the seat covers and air vents, as the team prepared for the
Big day.

kinds of sketches about the car’s looks, three Nanos were shipped to Delhi in containers
and remained under cover until the night before the launch. In the wee hours of 10
January, the car was rolled into Tata’s pavilion in hall 11 of Pragati Maidan right under the

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noses of several TV vans stationed nearby. But they missed the action. RNT, who later
admitted he had spent a sleepless night preparing for the launch, and Ravi Kant, were
present when the cars arrived.

That day will go down as a red-letter day in Indian automotive history. Using a three
dimensional hologram created in Germany, a ‘virtual’ RNT spoke to the huge crowds
deluging the Tata pavilion about the car he had dreamed of and which was finally about to
be unveiled.

Then, the real RNT, his over 6' 2" frame comfortably ensconced in a white-colored Nano’s
driver seat, drove onto the stage what the world now acknowledges as a path-breaking
car. As the crowd roared and cheered, a visibly tired but moved RNT took the mike to
assure them of one thing — the car, despite the protestations of many in the press, would
cost Rs 1 lakh. "A promise is a promise," RNT said, sealing his place in the hearts of
millions, whose aspirations of owning a car were now reality. As Tata stood modestly
enjoying his success on the stage, a foreign journalist was overheard saying to another:
"We are lucky to be here". The other replied, "Yes, at least we can tell our grandchildren
that we were there.”

If the Nano was one of the most anticipated events in automotive history, its launch has
set the industry aflutter. "It’s a problem for Detroit," wrote The Washington Post, "which is
racing to enter India’s booming small-car market but will now have to completely
revolutionize its production and distribution to compete." Perhaps the most important
comment came from Ford’s Executive Vice-President John Parker. "It is a groundbreaking
product," he said. "The Nano will cause people to think differently about the car. I have a
lot of respect for Tata.’’ It seemed like poetic justice that the praise came from the
company that had revolutionized personal transportation with the launch of the original
‘people’s car', the Model ‘T’, exactly a hundred years ago. Curiously, every ‘people’s car’
has been launched in the eighth year of the decade.

However, Tata Motors still needs to align the commercial imperatives behind the car,
analysts say. The company has invested Rs 1,700 crore in creating the Nano, which will
yield wafer-thin margins. Analysts are concerned the company will have a hard time

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achieving the volumes before the Nano returns a profit. In fact, Tata Motors’ stock has
been downgraded by rating agencies on this count as well as concerns over RNT’s bid to
acquire the Jaguar and Land Rover for $2 billion. Analysts also seem unsure if a company
can straddle a spectrum of products that ranges from a $1-lakh car to a Rs 1-lakh car.
"That car doesn’t have air-conditioning, power steering, air bags and other features. Do
you dare to buy that kind of car?" Wang Chuanfu, chairman of Chinese carmaker BYD,
Was quoted as saying at the Detroit Auto Show.

But RNT emphasizes that the Nano is not just a Rs 1-lakh car, but a platform that will be
used to create further high-end models that will sell for more and yield comfortable
margins. Tata Motors will also foray into electric and hybrid cars, using the Nano and its
future variants as a base, RNT says. He adds that he has also received invitations from at
least two countries to set up Nano manufacturing plants there, which will also help recover
the car’s R&D costs. More impressive are the intangible benefits RNT’s dream car has
achieved for Tata Motors. For one, he has put the fear of Indian engineering into
carmakers across the world. In a single stroke he has also made the Tata brand known in
every corner of the world, something no other auto company has ever done. In fact, the
publicity the Nano has garnered globally would be worth more than Rs 500 crore.

The Last Mile :

The launch was perfect, but the Nano has to go some more distance before it reaches the
customers. The last stage of cost reduction is expected to happen in distribution. Tata
Motors is developing an assembly kit for distributors who would stock completely
knocked-down kits of the car at warehouses and assemble them on site. Carting CKDs to
different parts of the country is expected to bring down costs as more parts can be
transported in the same space that a fully built car can be moved.

To enable cheaper assembly at the distributor’s end, some parts of the car would be glued
together instead of welded. "Usually those who make a small number of cars do such
distributed manufacturing," says Wagh. "Sometimes others do it to test the market. For

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the first time, it would be tried on a large scale." Also, the car is still at the beta stage.
Wagh says there would be more tweaking done by the time the first car rolls out of Singur
Later this year.

Already newly converted cynics are describing the car as revolutionary. The only person
not fully satisfied is RNT himself. "It is not as revolutionary as I wanted,'' he said. "I wanted
the car to be made from new materials, use new techniques, in a sense completely re-
envisage the way cars are made. In that sense I am still not satisfied,'' he
told BW.

For the moment, however, the cute-as-a-bug Nano is the cynosure of all eyes. And Ratan
Tata has undoubtedly entered the hall of fame of automobile manufacturing.

# Source : As published in Business world, January 22-28, 2008

Nano makes it to Time’s most important cars of all time

One week after it’s unveiling, the world’s media is still agog with news and views about the
Tata Nano. Many termed it a cute, ultra-cheap car that will revolutionize personal
transportation in India and Asia and many others are calling it a glorified go-kart that will
be unreliable and unsafe. The debate is still raging in all sorts of media - print, TV and the
Internet.

Online polls that ask Americans if they will buy one if and when the Nano is launched in
that market, blogs that have postings, which swing from patriotic praise to outright hatred
and discussion forums that are still witness to heated arguments about the promise and
fallout of the car are keeping the Tata car in the thick of it all. The Nano has probably got
more media attention than it bargained for. But, it was only to be expected with the Nano’s
much-publicized price tag making it the cheapest car of the world. Competitors who have
in the past sworn that it is an impossibility to develop a $2,500 car have reacted to the
Nano as far away as Detroit – the home of the American automobile industry.

Interestingly, the notoriously taciturn, Toyota Motor Corporation and its President, Mr
Katsuaki Watanabe, also reacted to the Nano saying that the world’s number two car

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maker will need a little more time to develop vehicles at this kind of price point. It is
reported that he also added that an early prototype of a Toyota small car that will be made
specifically for markets such as India is close to getting a “go sign”.

In the midst of all this attention that the Nano is still getting, comes one of the first
recognitions of its potential to create history. In a presentation titled ‘The dozen most
important cars of all time starting from 1908 to the present’, Time magazine lists the Tata
Nano along with legendary cars like the Ford Model T, the Volkswagen Beetle, Chevy
Belair, Toyota Corolla, the Mini and the Honda Civic.

Listing the 12 cars in chronological order, the Time magazine presentation says only these
‘few automobiles have been able to fundamentally change the way we live and dream’. As
for the Nano, Time says “India’s ‘people’s car’, as it is already dubbed, is intended to put
motoring within reach of Asia’s masses. At $2,500 it’s hard to see it how it won’t sell, but
even if it doesn’t it will become the poster car for a new, stripped-back style of engineering
— glue instead of welds! — that could change the world.”

Indian people's car

India is one of those developing countries whose economies are expected to be among
the world leaders by the middle of this century. Its technological skill and financial clout
have already made an impact in the IT industry and the international cricketing arena, to
take just two examples. But the unveiling of Tata Motors' Nano car in New Delhi yesterday
Marks a new level of Indian achievement.

The headline news is that the Nano will cost only pounds 1,300, thus opening a potentially
huge market in the developing world. But Tata has also stolen a march on giant vehicle
manufacturers such as GM, Ford, Toyota, V W, Mitsubishi and Renault-Nissan, all of
which are looking to expand sales in Asia, Africa and Latin America at a time when the
European and American markets are, respectively, flat and declining.

Tata has produced a car that not only costs pounds 500 less than the cheapest Chinese
model, but also breaks technological ground by having a rear-mounted two-cylinder
engine, which both saves fuel and creates interior space. It has taken out more than 34

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patents on technologies used in its manufacture. The Tata Group, the country's largest
conglomerate, epitomizes the global outreach of modern India; having acquired the Corus
metals company last year, it is now seeking to buy Jaguar Cars and Land Rover.

The world's second most populous nation presents a striking contrast between that kind of
industrial clout and the poverty in which most Indians still live. At one end of the scale are
billionaires such as Vijay Mallya, who is promoting India as a Formula 1 racing power. At
the other are the inhabitants of Mumbai's periphery who lack decent housing, education
and healthcare. The Nano lies between those two extremes: a car built to attract members
of the urban middle class who at present perch on motorcycles. That it will add to India's
already acute traffic problems should remind the government of how far it has fallen
behind in infrastructure development, whether roads, electricity or water. The Nano is a
remarkable first from a country that still exasperates for its failure to provide basic
services.
# Source : As published in The Daily Telegraph, London on January 11th, 2008.

Breathe easy People's Car, Nano, not that polluting

In spite of what Ratan Tata might say, Sunita Narain and RK Pachauri would have spent
an uneasy night. The prospect of hundreds and thousands of Nanos trundling down the
roads of various Indian cities spewing carbon dioxide and nitrous oxide would have been
nightmarish for them.

Are their worries justified? Not really, if the evidence and math’s are taken into
consideration. But that is getting ahead of the story. For some experts, Tata Nano is
actually a good thing. After all, had the Tata Nano not come along, there would have been
another car to take its place.

"India is a growing economy and so people will buy cars. It is a good thing that they will
perhaps be buying a smaller car which is complying with more stringent norms rather than

a much larger car or a two-wheeler that follows less stringent norms," says Krish
Krishnan, managing director, Green Ventures, a venture fund that invests in green

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initiatives. Mr. Krishnan has been an entrepreneur in sustainable environment


development.

But let us get to the heart of the argument and look at it clinically. After all, how much
pollution will the Nano cause? Automobiles produce many pollutants: carbon monoxide,
unburnt hydrocarbons and nitrous oxides. To make things simple, all of these have to be
converted into equivalent amounts of carbon dioxide (CO2) — the Mr. Evil of environment
today.

Now Euro IV compliant cars, which the Tata Nano is, produce one (1) gramme of carbon
monoxide and 0.08 gramme of nitrous oxide. To convert them into CO2 equivalent, a
conversion factor recommended by IPCC (Intergovernmental Panel on Climate Change)
of which Mr. Pachauri is chairman, is applied. It is 3 for carbon monoxide and 310 for
nitrous oxide. Once the entire math’s is done, we get 30 grammes per kilometer.
So each time the Tata Nano moves a kilometer, it will release 30 grammes of CO2
equivalent material into the atmosphere. This is 40% less than what all others cars
produce (50 grammes/kilometer or more) — and there are more than 5 million cars in
India today. But let us take the argument into a zone where the naysayers would be
comfortable: on the total amount of CO2 equivalent that Tata Nanos will produce over the
next five years. This involves a bit of some assumptions.

So assume that Tata will from the next year sell 1,00,000 cars a year for five years and
reach a total of 5,00,000 - half the size Mr. Tata thinks a car at one-lakh price point may
sell. Now let us take a range that the Tata Nano runs between 1,000 kilometers and 8,000
kilometers a year. If all those half-a-million cars run 1,000 kilometers then the total CO2
produced will be 15,000 tones annually.

If they all run 8,000 kilometers then the total CO2 equivalent will be 1,20,000 tones. In
reality, the figure should be closer to 25-30,000 tones because our assumptions of car
sales and annual mileage are on the higher side.

So are these numbers large? Taking the worst case - 5, 00,000 on roads and each
running 8,000 kilometers annually - the total CO2 equivalent will be less than 8% of India's

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total CO2 emission. And if we take a more realistic assumption then it will be less than 1%
of India's total CO2 emission. Environment guys would do well to go after the other 99%.

# Source: As published in The Economic Times — January 11, 2008

1 lakh car drives 1 billion dreams

Little Nano, the next big thing 20 km per liter; 21% more space than Maruti 800; Bharat III
emission norms.

NEW DELHI, SINGUR, JANUARY 10: Ending a four-year wait and bringing the dream of
car ownership closer to millions, Tata Motors today unveiled the "People's

Car" at a show here watched by the international automobile industry. Called Nano, the
car will cost Rs 1 lakh as promised by the company which also assured meeting all safety
and emission norms.

"Since we started the project four years back, there has been a steep increase in input
cost but a promise is a promise," said Tata Group chief Ratan Tata after displaying his
dream project at the Ninth Auto Expo.

"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 said.

"Tata Motors' engineers and designers gave their all for about four years to realize this
goal. Today, we indeed have a people's car, which is affordable yet built to meet safety
requirements and emission norms, to be fuel efficient and low on emissions. We hope it
brings the joy, pride and utility of owning a car to many families who need personal
mobility." This small car — Nano is 20 per cent shorter in length than the Maruti 800 but
Tata claims it has 21 per cent more space — is powered by a 623 cc rear-mounted engine
and will travel 20 km per liter. The car will cost Rs 1 lakh at the dealer-end but

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Attract Value-Added Tax and transportation cost.

Apart from the standard version, Nano will also come in two deluxe models with air
conditioning. While critics had been skeptical about the car meeting safety and emission
norms, Tata said Nano will meet Bharat Stage-III emission norms and can also meet the
stringent Euro 4 norms. The car has also gone through a full frontal crash test as per
Standard norms, he said.

Tata Motors expects two-wheeler riders to buy the car that costs half as much as those
currently in the market. With just 8 people in 1,000 owning a car in India, there is huge
potential to upgrade bike and scooter owners who bought about 7 million two-wheelers in
2006-07.

Commerce Minister Kamal Nath said Nano will help the common man shift from two-
wheelers to four-wheelers. "It is a proud moment for India. It demonstrates India's
technological and entrepreneurial ability. The car will help people move from two-wheeler
to four-wheeler and it will leap-frog the two-wheeler. It fulfils the need of the common
Indian who aspires to move from a two-wheeler to a four-wheeler," he said.

Tata also allayed fears expressed by environmentalist R K Pachauri and green activist
Sunita Narain that a car at that price would add more vehicles, leading to higher pollution.
"Pachauri will not have a nightmare and Sunita Narain can also sleep," he said.

On the reasons for choosing the name Nano, Tata said the car was about high technology
and small size. He credited the development of Nano to Tata Motors' engineers, and said
it was the capability and commitment to innovate that realized the dream. In fact, Tata
Motors has applied for 34 patents for aggregate features, such as the two cylinder
gasoline with single balancer shaft.

Asked if the company was looking to export the car as well, Tata said: "The first two-three
years our focus will be India and see the Indian market appropriately addressed." He did
not, however, rule out an overseas launch of the car.

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Tata revealed what enabled it to cut down costs and score over the entire global auto
industry. "We took the standard Maruti 800 as the base model and worked backwards on

how we can reduce costs. We decided and found out that a tight package that will mean a
smaller, meaner car, lighter engine and higher fuel economy will do the trick," Tata said.
"The decision to make it a rear engine driven was precisely to reduce the length of the
car."

But why did other car makers miss the trick? "I cannot say for others but what is important
is whether you have desire strong enough to prevent the odds from overwhelming you,"
Tata said.

At the site of the plant in Singur, West Bengal, where the first Nano will roll out, it is a race
against time. Over 2500 people have been working in two shifts behind a guarded
perimeter to complete the factory in time. Soon another shift will be introduced to make up
for any backlog in work caused during the last heavy monsoon.

"Work will soon start in three shifts. Over 75 per cent work of the factory is complete and
we hope by September of this year the first car will roll out of the factory,"' a top official of
West Bengal Industrial Development Corp (WBIDC) told The Indian Express. A major
portion of the work involving the setting up of a 230 KV substation on the project site to
ensure uninterrupted power supply to the factory and the vendor park has almost been
completed by ABB. In order to save the site from inundation in the future, the state
government has revived the 30-year-old Ghiya Kulti irrigation project at a cost of Rs 170
crore.

Next to the 645-acre plot that will have the main car plant, a vendor park is coming up on
290 acres to house the proposed 55 ancillary units. Already, 14 have started setting up
theirs. These include Lord Swaraj Paul-owned Caparo Engineering Pvt Ltd, Rasandik
Engineering Industries Indian Ltd, Rucha Engineers Pvt Ltd and Sharda Motor Industries
Ltd. While Rasandik has plans of investing Rs 55 crore in the first phase of work at the
vendor site, Rucha Engineering has committed Rs 50 crore for their facility at the vendor
park. WBIDC has set up a camp office at the project site where so far 2432 persons from
displaced families have got their names registered.

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# Source : As published in Indian Express on January 11th, 2008

ROLE AS A MARKETING RESEARCHER


I was a researcher of the Tata’s NANO car in which I research Perception of
people on “NANO”. I had use questionnaire as a tool in my marketing research.

Under my project there were total 9 areas (O.P.ROAD, MANJALPUR,


RAOPURA, NIZAMPURA, WAGHODIA ROAD, VIP ROAD, KARRELIBAUG,
ALKAPURI AND FATEGUNJ.) of Baroda city. I have visited different showrooms of
Two Wheeler & Four Wheeler in these areas to collect the data. I educated every
customer before filling the questionnaire about my project work. Like this task of filling
of the questionnaire was finished. After that I analyses the entire questionnaire and
get the real perception of the people about “NANO” in Baroda city, and I also came to
know the acceptance level of “NANO” in Baroda city.

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Marketing Research Problem :


• To find out the consumer perception on NANO car in Baroda city.

Scope of the Study :


• This study would be useful for companies to know what people perceive and
thinking about “Small Fight” that is NANO.

• This study would be useful to other students as a secondary data.

• This study would be useful to form strategies according to perception of people


about NANO.

Objective of the Study :


• To know the consumer perception on “NANO” car.
• To find out the Acceptance level of people.

• To find out the awareness level about “NANO” car.

• To know about factors affecting purchase decision of “NANO”.


• To know how purchase decision of “NANO”.varies from different Income
group.

Limitation of the study :

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• I will have to rely upon the information given by respondents, which may not be
fully true
• This study will be limited to only some areas of Baroda City
• It is only for short period of time.
• Lack of professional approach since researcher is a student.

INSTRUMENTATION:

SOURCES OF DATA COLLECTION

PRIMARY:
For my survey primary data have been used as a questionnaire to collect the
data.

SECONDARY :

The secondary date has been collected from the following modes:
● Magazines
● Data through internet sources

RESEARCH DESIGN
Research Design is the arrangement for conditioned for data collection & analysis of
data in a manner that aims to combined relevance to research purpose with economy
in procedure.

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A research design is a master plan or model for the conduct of formal investigation. It
is blue print that is followed in completing study.

THE research conducted by me


Is a descriptive research. This is descriptive in nature because study is focused on
fact finding investigation in a well structured form and is based on primary data.

RESEARCH PLAN
• Type of study: For completing my study I have gone for sample study because
looking at the size of population & the time limitation it was not convenient for
me to cover entire population. Hence I have gone for sample study rather than
census study.

SAMPLING PLAN
A sample design is a definite plan for obtaining a sample from a given population. It
refers to the technique or the procedure that researcher would adopt in selecting items
from sample. Sampling plan may as well lay down the member of items to be inched
in the sample i.e. the size of sample. Sampling plan is determined before data are
collected.

STEPS IN SAMPLING PLAN

Sampling frame :

The list of sampling units from which sample is taken is called sampling frame.
BARODA city map was studied thoroughly and samples were selected from the places
in a scattered manner to get effective result.

SAMPLING SIZE:
Total sample size is 300 .The following sample size according to area wise is as follows:
40 O.P.ROAD
20 ALKAPURI

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35 FATEGUNJ
30 MANJALPUR
30 VIP ROAD
35 KARELIBAUG
40 NIZAMPURA
30 RAOPURA
40 WAGHODIA ROAD

SAMPLING PROCEDURE:

The selection of respondents were accordingly to be in a right place at a right time


and so the sampling were quite easy to measure, evaluate and co-operative. It was a
randomly area sampling method that attempts to obtain the sample of convenient
elements.

FIELD WORK:

I have collected the data through medium called questionaire collecting the
responses from 300 people in all. I had done my field work in the following area.
O.P.ROAD, ALKAPURI, FATEGUNJ, MANJALPUR, VIPROAD, KARELIBAG,
NIZAMPURA, RAOPURA, WAGHODIA ROAD

I started my project very first educating the respondents about my entire project,
and ask them to co-operate with me. Mostly all the respondent were aware of this type of
surveys. So I didn’t face any type of difficulty during my project in the process of
explaining and taking there responses on the questionnaire.

QUESTIONNAIRES :

Through the questionnaire I was able to get an insight in to the consumers mind
and to learn about there perception about “NANO”. All of the questions mentioned in the
questionnaires were helpful to me in knowing the consumer acceptance level

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INTERPRETATION AND ANALYSIS


This has been classified in to two sections:

Section 1

Table : 1

GENDERWISE BI-FURCATION

NO. FREQUENCY PERCENTAGE

MALE 245 81.67


FEMALE 55 18.33

TOTAL 300 100%

Graph : 1

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245
250

200

150
MALE
81.67
100 FEMALE
55
18.33
50

0
FREQUENCY PERCENTAGE

The above mention graph which clearly states that out of 300 respondents , 245 are
Male and 55 respondents are Female .

Table : 2

AGE DISTRIBUTION

NO. FREQUENCY PERCENTAGE

18-30 100 33.00


30-50 150 50.00
Above 50 50 17.00

Graph : 2

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AGE
150
160
140
100
120
100
80 50 50 18--30
60 33 30--50
40 17 Above 50
20
0
FREQUENCY PERCENTAGE

There are more customers in the age group of 30-50 and 18-30 covered under
this study. Percentage wise graph has given here.

Table : 3

INCOME PER MONTH:

NO. FREQUENCY PERCENTAGE

5,000 – 10,000 80 17.50


10,000 – 15,000 119 45.00
15,000 – 20,000 66 20.00
Above 20,000 35 10.00

TOTAL 300 100%

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Graph : 3

119
120
100 80

80 66
5000-10000
60 39.66
35 10000-15000
40 29.66 22
15000-20000
11.66
20 Above 20000
0
FREQUENCY PERCENTAGE
INCOME PER MONTH

The above graph shows the different Income Group of respondents.

Table : 4
OCCUPATION :

NO. FREQUENCY PERCENTAGE

Govt. Employee 95 31.66


Pvt. Employee 80 26.66
Business man 39 13.00
Professional 51 17.00
House Wife 09 3.0
Student 16 5.0

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Retired 11 3.66

TOTAL 300 100%

Graph : 4

100 95
90 80
80 Govt. Employee
70
60 51 Pvt. Employee
50 39 Business Man
40 31.66
26.66 Professional
30
20 9 16 11 13 17 House Wife
10 3 5 3.66 Student
0 Retired
FREQUENCY PERCENTAGE
OCCUPATION

I have tried to cover all the people from different sectors. Here in my study there are
more no of Govt. and Pvt. sector Employee covered than other sector.

SECTION – 2

Table : 5

Showing Ratio of Respondents having Two Wheeler.

No. FREQUENCY PERCENTAGE

Yes 275 91.66


No 25 8.33

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TOTAL 300 100%

Graph : 5

300 275
250
200
150 91.66 Yes
100 No
25
50 8.33

0
FREQUENCY PERCENTAGE

Do you have any vehicle ?

From the above I analyze the No. of people having vehicle. There are about
92% of people having vehicle and only 8.33% of respondents do not having any
vehicle.

If yes than specify….


Type of Vehicle FREQUENCY PERCENTAGE

Two Wheeler 210 76.36


Four Wheeler 54 19.63
Any other 11 4.0

TOTAL 275 100%

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250
210
200

150
Two Wheeler
Four Wheeler
100 76.36 Any other
54
50 19.63
11 4
0
Frequency Percentage

The above graph shows that mostly respondents who covers under my study
having Two Wheeler with 76.36% and it is followed by respondents who’re having
Four Wheeler with 19.63% and lastly with 4% of respondents who are having vehicle
other than two wheeler or Four Wheeler.

Table : 6
Showing willingness of respondents to purchase of Rs. 1 Lakh car.

No FREQUENCY PERCENTAGE

Yes 225 75.0


No 75 25.0

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TOTAL 300 100%

Graph : 6

225
250
200
75
150 75
100 25 YES
NO
50
0
FREQUENCY PERCENTAGE

Would you like to go for Rs. 1 lakh


car ?

The above graph shows that out of 300 respondents 225 respondents with
75% like to purchase Rs. 1 Lakh car and only 75 respondents with 25% do not want to
purchase Rs. 1 Lakh car.

Table : 7
Showing Awareness level of “NANO”.

FREQUENCY PERCENTAGE

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Yes 300 100


No 0 -

TOTAL 300 100%

Graph : 7

300 300

250
200
YES
150 100
NO
100
50 0 0
0
FREQUENCY PERCENTAGE
Are you aware of Tata’s “NANO” car ?

The above graph shows that out of 300 respondents all the respondents are aware
about the “NANO”.

Table : 8

Showing the perception of respondents about “NANO”

No FREQUENCY PERCENTAGE

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Yes 272 90.66


No 28 9.33

TOTAL 300 100%

Graph : 8

300 272
250
200
150 90.66 YES
100 NO
28
50 9.33
0
FREQUENCY PERCENTAGE
Do you like the TATA’s Rs 1 Lakh car
The “NANO” ?

From the above graph we can see that there are 90.66% respondents like
Tata’s “NANO” car. in that respondents who do not want to go for “NANO” but even
they like “NANO” are also covered, very few respondents with 9.33% has given
negative response to the “NANO” and it is very less compare to overall sample size.

HYPOTHESES

Ho: Preference for The “NANO” is independent to income.

H1: Preference for The “NANO” is dependent on income.

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α = 5%
PREFERENCE 5,000-10,000 10,000-15,000 15,000-20,000 Above 20,000
YES O : 39 O : 76 O : 23 O : 13
E : (35.23) E : 59.90 E : 35.23 E : (20.64)
NO O : 31 O : 43 O : 47 O : 28
E : (34.77) E : (59.10) E : (34.77) E : (20.36)

TOTAL 70 119 70 41

X2 = (O- E)2 O= Observed frequency


E E=Expected frequency

X2 = 23.7

Rejection criteria =

Ho is rejected if calculated X2cal is > X2 tab

Here calculated X2 = 23.7 & X2 tab (3,0.05) = 7.815


So, Ho is rejected.
So here I can conclude that preference for “NANO” is dependent on income of
respondents.

Table : 9

Showing respondents perception to purchase “NANO” within 1 to 2 year.

No FREQUENCY PERCENTAGE

Yes 213 71.0

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No 77 25.66
Can’t Say 10 3.33

TOTAL 300 100%

Graph : 9

250 213
200

150

100 77 71 YES
25.66 NO
50 10
3.33 CAN'T SAY
0
FREQUENCY PERCENTAGE
Do you plan to buy a “NANO” in the next
1 to 2 year ?

The above graph shows the respondents ratio who want and who do not want
to buy “NANO” in the next 1 to 2 year. There are 213 respondents with 71% are
planning to buy “NANO” in the next 1 to 2 year. Where as 77 respondents with 25.66%
like to buy “NANO” after 2 year period. There are less no. of respondents are still not
think to buy “NANO” in the next 1 to 2 year with 3.33%.

Table : 10

Perception of Respondents about model of “NANO”.

FREQUENCY PERCENTAGE

Standard (Without AC) 163 54.33

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Deluxe (With AC) 137 45.66

TOTAL 300 100%

Graph : 10

163
180
137
160
140
120
100
80 54.33
45.66 Standard
60
Deluxe
40
20
0
FREQUENCY PERCENTAGE

Which Model would you go for ?

The above graph shows the preference of the respondents regarding two
different model of “NANO” car while purchasing. Here from the above graph we can
see that the No. of respondents who’s given their preference for car model are equally
for each model. Respondents who are like to go with Standard Model are 163 with
54.33% and respondents who prefers Deluxe Model are 137 out of 300 with 45.66%

Table : 11

Perception of respondents regarding mileage (21 kmph) of “NANO”

FREQUENCY PERCENTAGE

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Very good reason to buy 187 62.33


Good Enough for Small Town 92 30.66
Not Enough 21 07.00

TOTAL 300 100%

Graph : 11

200 187

150
92 Very Good
100 Reason
62.33 Good
Enough
50 30.66
21 Not
7 Enough
0
FREQUENCY PERCENTAGE
What do you think of it’s Mileage of 21 KM/Liter ?

The above graph shows that the out of 300 respondents mostly respondents like the
mileage of “NANO” car. Here, out of 300 respondents 187 select Mileage as a “Very Good
Reason” with 62.33% , 92 respondents think that this mileage of the car is “Good Enough” for
small town with 30.66% and at last very few respondents believe that this mileage is “Not
Enough” with 7%.

Ranking of attributes about “NANO” in order to preference given by respondents ,


while buying “NANO”

Table : 12.1 (BRAND NAME)

BRAND
RANK FREQUENCY PERCENTAGE

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1 70 23.33
2 149 49.66
3 56 18.66
4 25 8.33

TOTAL 300 100

Graph : 12.1

ATTRIBUTES RANKING

BRAND BRAND
RANK, 4, RANK, 1,
8.33% 23.33%

BRAND
RANK, 2,
BRAND 49.66%
RANK, 3,
18.66%

Table : 12.2 (AFFORDABILITY)

RANK FREQUENCY PERCENTAGE


1 159 53.00
2 95 31.66
3 46 15.33

TOTAL 300 100

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Graph : 12.2

ATTRIBUTES RANKING

RANK, 1,
53%
1
RANK, 3, 2
15.33% RANK, 2, 3
31.66%

Table : 12.3 (SHAPE/DESIGN)

RANK FREQUENCY PERCENTAGE


1 31 10.33
2 27 9.0
3 10 3.33
4 44 14.66

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5 188 62.66

TOTAL 300 100

Graph 12.3

ATTRIBUTES RANKING

RANK, 1,
10.33% RANK, 2,
RANK, 5, 1
9%
62.66% 2
3
RANK, 3, 4
3.33%
RANK, 4, 5
14.66%

Table : 12.4 (SAFETY)

RANK FREQUENCY PERCENTAGE


1 25 8.33
2 17 5.66
3 132 44.00
4 79 26.33
5 47 15.66

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TOTAL 300 100

Graph : 12.4

ATTRIBUTES RANKING

RANK, 1,
RANK, 5, 8.33% RANK, 2, 1
5.66%
15.66% 2
3
RANK, 3,
4
44%
RANK, 4, 5
26.33%

Table : 12.5 (COMFORT)

RANK FREQUENCY PERCENTAGE


1 15 5.0
2 12 4.0
3 56 18.66
4 152 50.66

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5 65 21.66

TOTAL 300 100

Graph 12.5

ATTRIBUTES RANKING

RANK, 1,
RANK, 5, 5% RANK, 2,
1
21.66% 4%
2
3
RANK, 3, 4
18.66%
RANK, 4, 5
50.66%

Table : 12

Perception about NANO on Second hand car


No FREQUENCY PERCENTAGE

Yes 267 89.00

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No 33 11.00

TOTAL 300 100%

Graph : 12

300 267
250
200
150
89 YES
100
33 NO
50 11
0
FREQUENCY PERCENTAGE
Would you like to buy Second hand car instead
of NANO ?

The above graph shows the respondents preference when they think for NANO
over second hand car. Here, graph shows that out of 300 respondents 267
respondents would like to purchase “NANO” instead of any second hand car with
89%, and respondent who would like to go for second hand car instead of Tata’s
“NANO” are very few, there are only 33 respondents prefers these with 11%.

Table : 13
Showing Reason to like “NANO” on second hand car

FREQUENCY PERCENTAGE

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Its new/ New Entry 144 48.00


Mileage 96 32.00
Running cost 45 15.00
Good looks 15 5.0

TOTAL 300 100%

Graph : 13

160 144
140
120
96
100
80 Its New
60 45 48 Mileage
40 32 Running cost
15 15 Good Looks
20 5
0
FREQUENCY PERCENTAGE
Why do you prefer a NANO to a
second hand car ?

Out of 300 respondents 144 respondent would like to purchase NANO instead
of second hand car because its New and of course due to its new entry in to the
market with 48%, where as 96 respondent prefer mileage is the main reason while
selecting between second hand car and NANO with 32% it is followed by 45
respondents with 15% would like to with prefer NANO instead of second hand car due
to its better Running cost, finally 15 respondents would like to go for NANO due to its
Good looks with 5%.

Table : 14
Showing how purchase decision of “NANO” affect on Status of respondents

No FREQUENCY PERCENTAGE

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Yes 189 63.00


No 111 37.00

TOTAL 300 100%

Graph : 14

200 189
180
160
140 111
120
100 63
80 37
60 YES
40
20 NO
0
FREQUENCY PERCENTAGE

Do you think that purchase decision of


NANO will affects your status ?

Here the above graph shows that out of 300 respondents 189 respondents with
63% think that Purchase decision of NANO would be affect to their status. Here
respondents were thinking in both the sense positively as well as negatively. Its
followed by the respondents who were thinking that purchasing decision on NANO will
not affect to their status, there are 111 respondents with 37% falls in this category.

Table : 15
Showing level of respondents belief about

No FREQUENCY PERCENTAGE

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Yes 199 66.33


No 101 33.66

TOTAL 300 100%

Graph : 15

199
200

150
YES
101
100 66.33
NO
33.66
50

0
FERQUENCY PERCENTAGE
Do you believe that “NANO” is a
dream car of yours ?

The above graph shows that out of 300 respondents 199 respondent with
66.33% believe that Tata’s “NANO” is there Dream car, while 101 respondents with
33.66% do not think that “NANO” is their Dream car.

• I have found in my study that most of the respondents who like to go for TATA’s

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“NANO” belongs to income group of 5000 to 15000, so it can be said that “NANO”
will be most welcome by this income group of people.

• Most of the respondents who belongs to the Private Sector or Govt. Sector having
greater acceptancy level for “NANO” in Baroda city and they would also like to go for
“NANO”.

• I have found that all the respondents of Baroda City which covered under my study are
well aware about TATAs “NANO”.

• In my study I have found that above 90% of respondents like the TATA”s “NANO” car.
Those respondents who would not like to go for “NANO” , they are also like the
TATA”s “NANO” for various reason like affordability, brand name, shape/design this
shows the preference of the respondents in Baroda city.

• More than half of the respondents would like to buy “NANO” in next 1 to 2 year.
Respondents who like to buy “NANO” are curiously waiting for its launching,
respondents like to go for “NANO” as it’s most affordable cost and of course due to its
Brand Name that is TATA.

• Respondents also prefer “NANO” due to its promise of good mileage about
21KM/Litre so, if TATA will fulfill the promise and if continuously maintain the
mileage of its car the “NANO” than it’ll surely helpful to attract more customer.

• Respondents who are preferring the second hand car , after the launching of TATA’s
Rs. 1lakh car the “NANO”, they would also like to go for “NANO” due to its low cost
and of course due to its attractive shape and design , its newness as compare to second
hand car.

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• More than half of the respondents believe that “NANO” is their Dream Car, so it shows
TATA’s “NANO” car will be warmly welcome by the people of Baroda City.

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During my study I done a project on perception of people on “NANO” car in


Baroda city. I had learn a lot and get opportunity to know what consumer actually
thinks and what they perceive about TATA’s “NANO” because I had done field work
and I was in between the people only. I gain a practical knowledge which I haven’t get
any where.

I had used a Questionnaire as a tool through which I had gathered a lot of


information. I fill up 300 questionnaire from the 9 areas of Baroda city, under my study
I have covered different class of people to know their perception and acceptance level
for “NANO”. I analyze from my questionnaire that 100% respondents aware from the
TATA’s upcoming “NANO” car, and out of 300 respondents 90% respondents like the
“NANO”. I also found that 71% of respondents would like to buy “NANO” in next 1 to 2
year, It shows the acceptance level of the people of Baroda city and it’s good sign
TATA. Respondents who like the “NANO” or want to buy are preferring the “NANO”
due to its Affordability and Brand Name.

All this information will be benefited to know the Perception and Acceptance
level of people in Baroda City. It can be also benefited to the TATA MOTERS as I had
mention all the likes and dislikes of the respondents in my Study.

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 BIBLIOGRAPHY
 APPENDICES

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BOOKS :

1) Philip kotler & hiller (2008) marketing management 8th edition: pearson

2)Berman , Berry and Joel r Evans(Oct-1997)Retail


management: A strategic approach 8th edition Englewood cliffs NJ
printicehall

3) Art kleiner George Roth,” How to Make experience your company’s best
teacher” Harward business review,

4) Boris Groysberg, Aashish Nanda ,and Nitin Nuhria ( may2004) “the risky
business of hiring stars “, Harward business review .

5) Country analysis 1997 “A framework to identify and evaluate the national


business environment “ Harward business review.

6) Benson P Shapiro V Kasturi Rangan , john J. svioula , (Aug. 2004 ) “ staple


your self to an order “ Harward” business unit review , July Aug. 2004

7) Derrel k. Rigby, Fredrick f reichheld, Philip schefter,(Feb - 2002) “avoid the


four perils of CRM” Harward business review.

1. MAGAZINES
A) OUTLOOK BUSINESS (9TH FEB, 2008)
B) BUSINESS STANDART (18TH FEB, 2008)
C) 4P’S OF BUSINESS AND MARKETING (28TH MARCH, 2008)
INTERNET :

http://www.tatamotors.com

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 QUESTIONNAIRE

Questionnaire

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This questionnaire is a part of grand project, the study of “PERCEPTION OF PEOPLE ON


NANO CAR” (BARODA CITY), by Tanvir Sheikh, a final year student of MBA.
(Sigma Insti. of Management)

SECTION – I
PERSONAL DETAIL

Name:______________________________________________________________________

Sex : Male Female

Age : 18 – 30 30 - 50 Above 50

Profession: Govt. Employee Businessman

Pvt. Sector Employee Professional

Student Any other _______________

Monthly Income : 5,000 - 10,000 Rs. 10,000 Rs. – 15000 Rs.

15,000 – 20,000 Rs. Above 20,000 Rs.

Family Members:___________________

SECTION – II

(1) Do you have any Vehicle ?

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Yes No

If Yes than Specify,

Two Wheeler Four Wheeler

Any other_____________

(2) Would you like to go for Rs. 1lakh car ?

Yes No

(3) Are you aware of Tata’s “NANO” car ?

Yes No

(4) Do You like the Tata’s Rs. 1 Lakh car The “NANO” ?

Yes No

(5) Do you plan to buy a “NANO” in the next 1 to 2 year ?

Yes No

Can’t say

(6)Which model would you go for ?

Deluxe (with AC) Standard (without AC)

(7) What do you think of it’s mileage of 21KM/Litre ?

Very Good & reason to buy Not enough

Good enough for small town

(8) Rank following attributes of in order to preference given by you , while buying “NANO”

Brand Name

Shape/Design

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Safety

Affordability

Comfort

(9) Would you like to buy a second hand car instead of NANO ?

Yes No

(10) Why do you prefer a NANO to a second hand car ?

It’s new Mileage

Running Costs Good looks

(11) Do you think that Purchase decision of NANO will affects your status ?

Yes No

(12) Do you believe that NANO is a dream car of yours ?

Yes

Place………………….. Sign……………………..
Date…………………...

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