A PROJECT ON

A SURVEY ON EFFECT OF TATA NANO ON INDIAN MARKET IT WITH SPECIAL REFERENCE TO RAIPUR
Submitted in partial fulfillment for the award of degree of

REPORT

BACHELOR IN BUSINESS ADMINISTRATION (Session 2009-10)

Submitted At

CENTRAL COLLEGE OF IT

Approved by Asst. Prof. Mani

Submitted by Naresh

ACKNOWLEDGEMENT

No work can be completed successfully without the help, inspiration and encouragement by the elder. I would begin by thanking to my parent who provided me the required support for completing this project. I am grateful to ,Mr. Surjeet sir my principal for giving me this opportunity to do the research project. We owe deepest sense of gratitude to our project guide Mrs. Monika dulani mam . whose supervision, helpful suggestion and guidance has us to completed our project successfully. I sincerely thank , faculty member of my college, who dedicated their much time in supervising my thesis work.

Naresh BBA 6th Sem.

TO WHOM SOEVER IT MAY CONCERN

This is to certify that Mr. Naresh has done his project entitled A MARKET IT SURVEY ON EFFECT OF TATA NANO ON INDIAN WITH SPECIAL REFERENCE TO RAIPUR for

fulfillment of Bachelor of Business Administration. We will all the success for his future. Regards, For National Garage Auto Mobile Dealer TATA MOTORS

CERTIFICATE OF EVALUATION

This is to certify that the research report on topic A SURVEY ON EFFECT OF

TATA NANO ON INDIAN MARKET IT WITH SPECIAL REFERENCE TO RAIPUR Submitted for the

practical fulfillment of the degree of Bachelor in Business Administration Central College of Information Technology Raipur affiliated to Pt. Ravishankar Shukla University Raipur. Is a genuine work done by Naresh under my guidance and supervision .

PRINCIPAL EXTERNAL

INTERNAL

PREFACE
As a part of B.B.A. 6th semester. I had to undergo project work , accordingly I was assigned the topic A SURVEY ON EFFECT OF TATA NANO ON INDIAN MARKET IT SPECIAL REFERENCE TO RAIPUR. I conducted a survey through questionnaires in the TATA MOTOR of Raipur city and collected data , my findings and conclusions are dependent upon the data analysis which in turn is dependent on collect data. I have tried my level best in order to draw some certain conclusion on EFFECT OF TATA NANO ON INDIAN MARKET it, if any how this project is beneficial to anybody or any job. I will consider my efforts worthwhile. WITH

Naresh
BBA 6th SEM

DECLARATION

student

I Naresh of BBA 6th Semester Department of Management

, I ON

hereby declare that the research entitled A SURVEY EFFECT OF TATA NANO ON INDIAN MARKET

IT WITH

SPECIAL REFERENCE TO RAIPUR is the record of original work done by me and the matter enclosed has not been submitted by the awards of any other degree in the university or anywhere.

Date- 26/04/2010

Naresh
BBA 6th Sem Roll No.821712

CONTENTS
CHAPTER 1. History & Introduction
Profile Chairman Board of director

CHAPTER 2. Design
Cost cutting feature Price Modal various

CHAPTER 3. Technical specification

The interior Rear Mounted engine The nano effect on urban india Effect of tata nano on Indian car industry Nano effect : threat to used cars Nano will dent used car ; two wheeler market :expert Tata nano may affect three-wheeler sales

CHAPTER 4. Object of research

CHAPTER 5. Variants
Diesel Compressed -air-engine Electric drive train or electric version Hybrid Nano europa Tata Nano EV

CHAPTER 6. Expectation
Potential effect on Indian economy Comparison to the modal T

CHAPTER 7. Criticism, Issues & Problems

Question of safety Mass motorization Used car market effects Spontaneous fire Competitors Top feature The engine Power train placement The dashboard Single mirror Light weight body Wiper Small wheels Plant New plant for nano to come up in gujarat Tata maintains suspension in nano plant

CHAPTER 8.

CHAPTER 9.

CHAPTER 10. Interview with ratan tata

Making of nano Nano to change our market position

CHAPTER 11. Annexes

Questionnaire Bibliography

CHAPTER-1 HISTORY & INTRODUCTION

PROFILE CHAIRMAN BOARD OF DIRECTOR

PROFILE

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 Grouches grown into one of India's biggest and most respected business organizations, 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

Established in 1945, Tata Motors is India's largest automobile company. With a portfolio that extends across commercial, passenger and utility vehicles, the company generated revenues of Rs 32,426 core (USD 7.2 billion) in 2006-07. It was the first Indian automobile company to list on the New York stock Exchange. The company began manufacturing commercial vehicles in 1954 with a 15year collaboration agreement with Daimler Benz of Germany. Today Tata Motors is India's largest commercial vehicle manufacturer; it is also among the world's top five manufacturers of medium and heavy trucks and the world's second largest medium and heavy bus manufacturer. Having entered the passenger vehicles

segment in 1991, Tata Motors now ranks second in India's passenger vehicle market.

CHAIRMAN

MR. RATAN TATA

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 Tele services 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 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 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 an honorary doctorate in science by the University of Warwick 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 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 program board of the Bill & Melinda Gates Foundation's India AIDS initiative

BOARD OF DIRECTOR

As on 31 August 2006, the Board of Directors of Bharat Forge comprises Thirteen Directors. The Board consists of the Chairman and Managing Director, who is a promoter Director, Six Executive Directors, Seven Non-executive Directors, Seven of whom are independent, including one Director who is a Nominee of the Financial Institution. Details are as given below :

Sr.No

Name the Director

Category

1 2 3 4

B.N. Kalyani Chairman & Managing Director P.H. Ravikumar Nominee of ICICI Bank Ltd. S.S. Marathe S.M. Thakore

Promoter, Executive and Managing Director

Non-executive, Independent Non-executive, Independent Non-executive, Independent

5 6 7 8 9 10 11 12 13 14 15

S.D. Kulkarni Mr. P.G. Pawar Prof. Dr. Uwe Loos P.C. Bhalerao Mrs. Lalita D. Gupte MR. Alan Spencer G.K. Agarwal* Executive Director A.B. Kalyani Executive Director B.P. Kalyani** Executive Director S.E. Tandale** Executive Director P.K. Maheshwari** Executive Director

Non-executive, Independent Non-executive, Independent Non-executive, Independent Non-executive Non-executive, Independent Non-executive, Independent Executive Executive Executive Executive Executive

The audit committee of Bharat Forge performs

Oversight of the companys financial reporting process and the disclosure of its financial information to ensure that the financial statement is correct, sufficient and credible. Recommending to the Board the appointment, re-appointment and, if required the replacement or removal of the statutory auditor and the fixation of audit fees. Approval of payment to statutory auditors for any other services rendered by the statutory auditors Reviewing with management, the annual financial statements before submission to the Board for approval with particular reference to : Matters required to be included in the Directors Responsibility Statement to be included in the Boards report in terms of clause (2AA) of Section 217 of the Companies Act, 1956. Reviewing with the management, the quarterly financial statements before submission to the Board for approval.

CHAPTER-2

DESIGN
COST CUTTING FEATURE PRICE MODAL VARIOUS

COST CUTTING FEATURE

The Nano's car boot does not open. Instead, the rear seats can be folded down to access the boot. It has a single windscreen wiper instead of the usual pair. It has no power steering The base model has only three lug nuts on the wheels instead of the usual four. The base model has only one side view mirror. Some use of plastic and glue in place of welded steel. Manually operated side windows . Air conditioning/heating not part of base model. Airbags not part of base model.

PRICE
Tata initially targeted the vehicle as "the least expensive production car in the world aiming for a starting price of 100,000 rupees or approximately US$2000 (using exchange rate as of 22 March 2009) 6 years ago,[when?] despite rapidly rising material prices at the time. As of August 2008, material costs had risen from 13% to 23% over the cars development ,and Tata faced[citation needed] the choice of: introducing the car with an artificially low price through government subsidies and tax-breaks[citation needed. forgoing profit on the car using vertical-integration to artificially boost profits on cars at the expense of their materials industries[citation needed. partially using inexpensive polymers or biodegradable plastics instead of a full metal-body raising the price of the car.

MODAL VARIOUS

The basic Tata Nano Std priced The deluxe Tata Nano CX The luxury Tata Nano LX

-at 123,000 Rupees has no extras; - at 151,000 Rupees has air conditioning; - at 172,000 Rupees has air conditioning, power windows, fabric seats and central locking

Tata Nano Base Model (Petrol)

Drive to your office in style in the Tata Nano - India's most preferred car manufacturer. A Tata car in India is an ideal family as well as personal choice any time. Spend a few minutes to read the New Tata Nano Base Model (Petrol) Review here. The Tata Nano is presently the world's cheapest small car that is manufactured by Tata Motors in India. It is a rear-engine, four-passenger city car.

It is the standard version, comes in three color options, and has single-tone seats, and fold-down rear seat.

Tata Nano CX

Tata Nano CX: This variant comes in five color options, with heating and airconditioning (HVAC), two-tone seats, parcel shelf, booster-assisted brakes, folddown rear seat with nap rest;

Tata Nano LX

This has the same features of CX. Additionally, it has fabric seats, central locking, front power windows, body colored exteriors in three premium colors, fog

lamps, electronic trip meter, cup holder in front console, mobile charger point, and rear spoiler. Many of these features are not available on current entry-level small cars in the country. The Tata Nano LX encompasses all the features of CX like heating and air-conditioning (HVAC), two-tone seats, parcel shelf, booster-assisted brakes, and fold-down rear seat with nap rest. Apart from that it also has complete fabric seats, central locking, front power windows, and body colored exteriors in three premium colors. Other additional attributes of the Tata Nano LX are fog lamps, electronic trip meter, cup holder in front console, mobile charger point, and rear spoiler.

VEHICLE SUMMARY
Name: Model: Car Body Type: Segment: Top Speed: Fuel Consumption: Highway Fuel Consumption: City Nano - 1 Lakh Rupee Car Hatchback A Segment 90 26.00 22.00

ENGINE SPECIFICATIONS
Displacement: Engine Type: Maximum Power: Maximum Torque: 624cc, 3 cylinder, rear engine Petrol 33bhp 0

DIMENSIONS
Length: Width: Height: 2928 mm 1417 mm 1512 mm

OTHER SPECIFICATIONS
Seating Capacity: Tire Size: Steering: Brakes: Gears: Fuel Tank: Body Color Bumpers: 4 0 Power Front Disk, Rear Drum 4 Manual 30.00

CHAPTER- 3 TECHNICAL SPECIFICATION

THE INTERIOR REAR MOUNTED ENGINE

THE INTERIOR

According to Tata Motors, the Nano is a 35 PS (26 kW; 35 hp) car with a 624 cc rear engine and rear wheel drive, and has a fuel economy of 4.55 L/100 km (22 km/L, 51.7 mpg (US), 62 mpg (UK)) under city road conditions, and 3.85 L/100 km on highways (26 km/L, 61.1 mpg (US), 73.3 mpg (UK)). It is the first time a twocylinder non-opposed petrol engine will be used in a car with a single balance sheet. Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano, with the power train accounting for over half of them. The project head, Girish Wagh has been credited with being one of the brains behind Nano's design.[ Much has been made of Tata's patents pending for the Nano. Yet during a news conference at the New Delhi Auto Expo, Ratan Tata pointed out none of these is revolutionary or represents earth-shaking technology. He said most relate to rather mundane items such as the two-cylinder engines balance shaft, and how the gears were cut in the transmission. Though the car has been appreciated by many sources, including Reuters due to "the way it has tweaked existing technologies to target an as-yet untapped segment of the market", yet it has been stated by the same sources that Nano is not quite "revolutionary in its technology", just low in price. Moreover, technologies which are expected of the new and yet-to-be-released car include a revolutionary compressed-air fuel system and an eco-friendly electric-version ,technologies on which Tata is reportedly already working, though no official incorporation-date for these technologies in the new car has been released. According to Tata, the Nano complies with Bharat Stage-III (similar to EuroIII) and can also meet Euro-IV emission standards. Ratan Tata also said, 'The car has passed the full-frontal crash and the side impact crash'. Tata Nano passed the required 'homologation tests with Pune-based Automotive Research Association of India (ARAI).This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise & vibration and can now ply on Indian roads. Tata Nano managed to score 23.6 km per litre during its homologation tests with ARAI.[2] This makes Tata Nano the most fuel efficient car in India. Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAIs tests on its windshield. According to ARAI in the tests the Nano conformed to Euro IV emission standards which will come into effect in India in 2010, yet it was only homologated to the Euro III level.

REAR MOUNTED ENGINE

The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500, another technically innovative "people's car". A concept vehicle similar in styling to the Nano, also with rear engine layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production. Once the project was taken over by BMW, the new Mini was much larger and technically conservative. The independent, and now-defunct, MG Rover Group later based their Rover City Rover on the Tata Indica. Tata is also reported to be contemplating offering a compressed air engine as an option.Engine:2 cylinder petrol with Bosch multi-point fuel injection (single injector) all aluminum 33 horsepower (25 kW) 624 cc (38 cu in)Value Moronic engine management platform from Bosch 2 valves per cylinder overhead camshaft Compression ratio: 9.5:1 bore stroke: 73.5 mm (2.9 in) 73.5 mm (2.9 in) Power: 35 PS (26 kW; 35 hp) @ 5250 rpm Torque: 48 Nm (35 ft-lb) @ 3000 +/-500 rpm Layout and Transmission Rear wheel drive 4-speed manual transmission Steering mechanical rack and pinion w/o servo Turning radius: 4 meters PerformanceAcceleration: 0-60 km/h (37 mph): 8 seconds Maximum speed: 105 km/h (65 mph) Fuel efficiency (overall): 23.6 kilometers per liter (4.24 liters per 100 kilometers (66.6 mpg-imp; 55.5 mpg-US)) Body and dimensions Seat belt: 4 Trunk capacity: 15 L cu ft (Expression error: Unrecognized word "l" m3) Suspension, Tires & Brakes Front brake: 180 mm drum Rear brake: 180 mm drum Front track: 1,325 mm (52.2 in) Rear track: 1,315 mm (51.8 in) Ground clearance: 180 mm (7.1 in) Front suspension: McPherson strut with lower A arm Rear suspension: Independent coil spring 12-inch wheels Supplier Part/system Tex spin Clutch Bearings

BoschOxygen sensor, Gasoline injection system (diesel will follow), starter, alternator, brake system Continental AG Gasoline fuel supply system, fuel level sensor Caper Inner structural panels HSI AUTO Static sealing systems (Weather Strips)

CHAPTER- 4 OBJECT OF RESEARCH

THE NANO EFFECT ON URBAN INDIA EFFECT OF TATA NANO ON INDIAN CAR INDUSTRY NANO EFFECT: THREAT TO USED CARS NANO WILL DENT USED CAR; TWO WHEELER MARKET: EXPERT TATA NANO MAY AFFECT THREE-WHEELER SALES

THE NANO EFFECT ON URBAN INDIA

The original plan was to ship the Tata Nano to the U.S. But at 1,332 pounds, the little yellow car turned out to be light enough to fly. It traveled in style to New Yorks Cooper-Hewitt, National Design Museum, where it will remain on display until April 15, 2010. The worlds cheapest car has had a long journey, and it has generated attention and controversy every inch of the way. In 2003, when Indian business magnate Ratan Tata announced his intention to develop a car that would sell for Rs.100,000 (about $2,000), he caused a furor. Other car manufacturers simply refused to believe him. Environmentalists saw it as a small car with a big footprint: at such a low price, cars would flood Indian cities. As Tatas dream came closer to being realized, however, support for the Nano grew. The car was unveiled at New Delhis Auto Expo in 2008. Leading environmental research groups in India continued to denounce the Nano, but public opinion swelled in its favor. Standing today on a low gray platform in the Cooper-Hewitts Great Hall, the Nano looks rather pleased with itself. Designed by Girish Wagh of Tata Motors, with input from Justin Norek from the Italian consulting firm Trilix, its face has a sly smile and its body is compact and muscular. The jaunty sunshine yellow glows in the wood-paneled hall, and a door has been opened to reveal interiors that can comfortably seat a family of five. As people walk by, the word cute is distinctly audible. It is a car with international appeal, and Tata Motors has already announced plans to sell a version of the Nano in Europe by 2011. In capturing the worlds imagination, the Nano has become a point of national pride for Indians. Prashanth Aare, who teaches at a business school in the city of Hyderabad, says his seven-year-old daughter no longer likes sitting in his new Nano. She gets irritated because people keep coming up to touch the car, he says, Then they want to ask questions about the cars performance and mileage. Within a few months of its being launched, Indians had placed 203,000 orders. More than half of these cars have already been delivered, and Tata began its second booking period early this month. Soon the Nano will be as common as scooters, Aare says, rather wistfully. Two-wheelers, such as scooters and motorcycles, are pervasive on Indian roads because cars have largely been out of the financial reach of the countrys middle class. The Nano, at a price that competes with most second-hand cars in India, is specifically aimed at changing that. Indeed, the Cooper-Hewitt praises the

Nano for providing safer transportation, empowering its users and changing the way they live and work. But increased safety and empowerment arent the only implications of replacing two-wheelers with Nanos. Indias cities are already notoriously gridlocked. Residents of smaller cities, where cars are an aspiration buy, account for more than 50 percent of the Nanos purchasers. But their roads are simply not wide enough to face an onslaught of cars. Even in the larger cities, traffic tangles and the resulting emissions resist any kind of solution. Addressing shareholders in 2008, Tata explained that the Nano could hardly be held responsible for worsening traffic conditions in India. Eighty million twowheelers are driven on Indian roads today, as compared to 14.5 million cars. Even if a million Nanos were sold over the next five years, they wouldnt represent a substantial increase in the total number of cars. However, it now appears that in those five years, the Nano will certainly not be the only cheap car on Indian roads. Renault-Nissan was the first to emulate the Nano model, announcing in 2007 plans to produce a $3,000 car in three years. Toyota, Volkswagen and Hyundai Motor Co. have all followed suit, and most of these companies are eyeing India as a manufacturing hub for small cars, which can then be introduced to other developing markets, such as Russia and Latin America. Ahamdabad's Bus Rapid Transit System (BRTS), designed by Vijay and Meghal Arya, Arya Architects. Photos: Cyrus Mobedji and Meghal Arya The problem is not just the Nano, but all cars, says Anumita Roy Choudhury, associate director at New Delhis Centre for Science and Environment (CSE). As Urban Planners, we should send out a policy message by not strengthening carcentric infrastructure, and investing in public transport, she adds. But what kind of public transport should they be investing in? In recent times, growing cities such as Hyderabad and Bangalore shifted focus away from road infrastructure, and invested heavily in underground metro systems. In hoping that a strong alternative public transport will take pressure off the roads, they seem to be reckoning without what Chowdhury calls The Middle Class Aspiration: people will still want to buy cars. The Nano seems to have ensured that the solution for traffic control will have to be found above ground. Ahamdabad, home turf for the Nano, seems to have found one response. In October last year, the city launched a Bus Rapid Transit System (BRTS), a network of high-speed buses operating in corridors specially created for them on the citys arterial roads. Today, over 18,000 people use it daily, and this number is set to grow. The team that developed the system was in Washington, D. C., recently, to receive the 2010 Sustainable Transport Award. M. P. Ranjan, senior professor at

Indias National Institute of Design, is jubilant at the projects early success. Property values along the corridor have shot up, people are responding with their wallets! Very promising. The Tata Nano has indeed come to town and the city is responding, thanks to some local vision. Vision is certainly what policymakers will need. While the Nano smiles benignly in the Cooper-Hewitt, lapping up all the accolades, it has wrought a revolution on Indian roads, sending urban planners scrambling for responses. The answers they find will have implications for the rest of the developing world, and by extension, for the future of the planet.

EFFECT OF TATA NANO ON INDIAN CAR INDUSTRY

Finally, Tatas ambitious peoples small car Nano is going to launch on 23rd March and there are good chances that this car will definitely change our thinking towards cars. Today, in India car are still believed as an object of luxury and a small portion of our population have access to them. However, this small car from Tata can really change our thinking and perception about ownership of cars. So far, there exist a big price difference between a two wheeler and a car in India. People can easily buy a good two wheeler in India by paying between Rs 25000- 50000 ($ 500- 1000), however, for buying a car they are required to pay at least 2 lakh Rupees ($ 4000). Now, this big price difference can be easily filled by Tatas small car Nano which will cost around Rs 1 Lakh ($2000).Moreover, with the availability of cheap car loans, it will further become easy for people to buy this car. This car can easily provide a good option to large number of lower middle class of India, who is looking for a car. The other major advantage of this car is that it is 8% smaller than so far available small car Maruti 800 and it has 21% more interior space than it. However, there is one problem with this car that there is no back space for Luggage available in it because engine of Nano is in rare, though some space for Luggage is provided in front. Many experts believe that Nano can easily work as catalyst in Indian car market by giving revolutionary push to the Indian car market which is presently struggling. Two wheeler markets in India has already seen a big jump in recent times due to strong demand, Now we can easily hope for same show in car market also thanks to Tatas Nano. After the launch of Nano many experts are also comparing it with Indian Telecom market which saw major jump after the availability of Rs 501 phone plus mobile connection by Reliance. At present, it is not easy to predict the final results because it will still take more than one month to hit Indian roads and in future, Nano will face some competition from other small and first car by leading two wheeler manufacturer Bajaj. However, at the end, we can say one thing with confidence that this car will have only positive effect on already ailing Indian car market.

NANO EFFECT : THREAT TO USED CARS

With the much awaited world's cheapest car 'Tata Nano' car launched, dealers of used cars forecast around 30-40 per cent dip in the sales of used small car in the country. Due to its "low" price tag, many customers opting to buy a used car may plump for a new Nano, though it comes comparatively with lesser cubic capacity, R Srivatsan President of My TVS, part of the TVS Group engaged in selling used cars said. "It is because of this factor, we are expecting around 30-40 per cent drop in the market of A and B segment vehicles", he said. "However, once the car (Nano) hits the road, we will know the exact figure on that," he said. Stating that the Nano design was very good and attracts more buyers, he said once the booking starts for Nano, there would be less number of people going for used small cars. For the exact results, "we have to wait and see on how the market responds," he said. Initially, there may be a slump in the sales of used cars especially Maruthi 800, Alto and Hyundai Santro range of vehicles, he said. Srivatsan said a general trend was that instead of buying a used car for Rs one lakh, people would go in for a brand new Nano. However, if Nano performs well then the problem arises for these kind of cars. "We have to stop procuring these cars or we need to purchase them at a very low price from buyers and that is the way I think we can manage the sales in future," he said. Speaking in similar terms, Saravanan, an official of Toyota First, engaged in selling used cars and a subsidiary of Lanson Toyota Group, said Nano might be a cost effective vehicle but we need to 'wait and watch' for its performance. "When Maruti 800 was launched in the country, another vehicle Dolphin was also unveiled but we all know which has been successful, similarly, only after the Nano being formally unveiled we may come to a conclusion", he said.

The last two months registered a comparatively low sales for the company, he said. "Nano may be a top scorer on the cost but in the longer perspective, it is the performance that speaks. We have to wait and see." A Maruti 800 could touch at least 80 KM per hour and company officials of Nano said they could reach 60 KM per hour, he said.

NANO WILL DENT USED CAR; TWO WHEELER MARKET: EXPERTS

The launch of Nano, the world's cheapest car from Tata Motors, has created a new segment in the auto industry that will affect the used car and two-wheeler markets "significantly", experts said. Tata Motors Monday launched the Nano commercially, more than a year after it unveiled the Rs.100,000 car at an auto expo in Delhi. The car will be available for booking between April 9-25 with delivery starting in July at a booking price of Rs.2,999. Experts feel the used car market and the two-wheeler business will be subject to attrition, with the Nano bridging the gap for first-time buyers. "It's likely to affect the used car business by 10-12 percent with immediate effect. It might also push down the price by an equal percentage for second hand vehicles," auto analyst Murad Ali Baid told IANS. Abdul Majeed, principal automobile consultant at PricewaterhouseCoopers said the impact of Nano on the used car market will be "significant". "The car has created a new segment, which will significantly affect the second hand car market, while the two-wheeler market will also suffer," he said. Tata Motors chairman Ratan Tata has declared on several occasions that he first thought of introducing an affordable car when he saw a family of four traveling on a two-wheeler. "We had never conceived the Nano as the cheapest car but as a vehicle to enable Indian families own an affordable, all-weather mode of transportation," Tata said at Monday's press briefing during the vehicle launch.

However, even after Monday's "interim launch", many consumers may still have to wait to own the car. Tata will manufacture about 60,000-70,000 vehicles in the first phase until its new facility in Sanand in Gujarat becomes operational by the year-end, which will take the number to around 500,000.

"We are aware that the demand is most likely to outstrip supply in the near term, because this is an interim launch, until the Sanand facility becomes fully operational," Tata said. He admitted that a long waiting period could dissuade prospective buyers. Majeed shared the same view: "The biggest challenge for Tata will be to make higher numbers available as soon as possible." Arguing that the Gujarat facility would take some time to come up, Majeed said: "The small numbers being rolled out of Tata's Pantnagar plant (in Uttarakhand) will not suffice." Dilip Chenoy, president of the Society of Indian Automobile Manufacturers (SIAM), however, said since the number of cars immediately available in the market was limited, it would not affect the used car business and two-wheeler market. "The car has created a new segment in itself. But the initial numbers are too little to have any impact on any other segment," he said

TATA NANO MAY AFFECT THREEWHEELER SALES

PUNE: India's four-wheeler drive first impacted the cargo carrier three-wheeler market. Now, with Nano, Tata Motors' Rs 1 lakh car, the impact may be felt by the passenger carrier three wheelers, the ubiquitous 'auto rickshaw'. India's gone four-wheel. Look at the Tata Ace: it hurt the three wheeler heavy (load carrier) market and now the Rs 1 lakh car will hurt the three wheeler light (passenger) market, said Simon Dobson, managing director, Magna Steyr India Pvt Ltd. He added, I am quite sure that the rickshaw market will continue but perhaps not in India. Other markets have not moved to four wheels quite as fast as India. While the automotive industry has been concentrating on the impact of the Nano on two-wheelers, Dobson was confident it would have a greater impact on the three wheelers. His view supports chats and discussions among auto fans on the internet that auto rickshaw driver unions had begun to file requests that they be allowed to operate the Nano using their existing three wheeler permit. This was before the January 10 launch of the ultra small car. For Magna Steyr, the over $24 billion diversified automotive supplier, the three wheeler segment is an area of interest, having first displayed its 175 cc threewheeler, which can run on CNG and petrol, a year ago. Called `rickshaw', the Canadian-Austrian brand-independent engineering and manufacturing partner of automotive companies, has shown the 'rickshaw' to Indian OEMs. However, nothing has come of it and Dobson said they are now working on upgrading it technologically.

CHAPTER- 5 VARIANTS
DIESEL COMPRESSED-AIR-ENGINE ELECTRIC DRIVE TRAIN OR ELECTRIC VERSION HYBRID NANO EUROPA TATA NANO EV

Diesel
A website has reported that the Tata Nano might be made available with a 690 cc diesel engine by September 2010. Tata motors have not confirmed this yet have hinted that a diesel version will be introduced in the future. "As of now the Diesel variant is not offered. It will be offered only in Petrol now"

Compressed-air-engine
Tata Motors is working with a French firm on using compressed air as an energy source.The company has tied up with Moteur Development International (MDI) for this purpose.

Electric drivetrain or electric-version

Tata is also believed to be making an electric version of the Nano, called the ENano (reportedly with attached or side by solar panels as well)which might well turn out to be the "world's cheapest electric car" which is more eco-friendly and has many enthusiasts and media for its support. It's supposed to be as cheap as the conventional gasoline version. Tata is making the Nano compliant with export market regulations and plans to export such a car worldwide, particularly to the UK and the rest of continental Europe, the US, and Australia. The Economic Times reported[that the "electric Nano" "would still make good sense for economic, clean and green personal mobility in countries around the world." According to the Hamburg-based newspaper, Auto Bild, the E-Nano would be built in cooperation with the Norwegian electric car specialist, Miljbil Grenland AS

Hybrid

Left lane news reported that "a hybrid version [of Tata Nano] is also likely, although it is not yet known whether the electric motor will be paired with a gasoline or diesel version."

Nano Europa
Tata Motors unveiled a version of the Nano mini-car called the Nano Europa at the 2009 Geneva Motor Show. The car will be coming to mainland Europe and the UK and will have a number of improvements over the standard Nano. The Nano Europa has an increased wheelbase, a new 3-cylinder engine and improved interiors and exteriors. The Nano Europa will be more expensive, heavier, and less fuel economical than the standard Nano with prices said to be around the US$ 6000 mark.The Nano Europa was heavily modified to meet EU safety and emission standards.

Tata Nano EV
In 2010, at Geneva Motor Show, Tata unveiled the EV-version car uses superpolymer lithium-ion batteries and has a range of 80 miles.

CHAPTER- 6 EXPECTATION

POTENTIAL EFFECT ON INDIAN ECONOMY COMPARISON TO THE MODAL T

POTENTIAL EFFECT ON INDIAN ECONOMY

The Economic Times quotes:
Tata Nanos launch could expand the Indian car market by 65%, according to rating agency CRISIL. The low price makes the car affordable for families with incomes of Rs 1 lakh [100,000] per annum, the agency said. The increase in the market is expected to push up car sales by 20% over the previous year. The unveiling of Tata Nano, the cheapest car in the world, triggers an important event in the car market. Based on the statement by company officials, CRISIL Research estimates the consumer price of the car at around Rs 1.3 lakh. This brings down the cost of ownership of an entry level car in India by 30%, the company said in a report. According to one report, India as well as some European nations, have great expectations from the Nano and are keenly awaiting it, especially the electric version of the Nano,making it in all probability the "world's cheapest electric car" officially on record. The car itself is expected to boost the Indian Economy as well as expand the Indian car market by 65%, according to rating agency CRISIL. The Nano, already in production, has already been listed in the Guinness Book of World Records as the world's cheapest car. India's leading automotive portal Carwale.com is testing the Tata Nano for 7,000 kms across the Golden Quadrilateral project. The principle sponsor of the event Gulf Oil is also testing its range of Engine and Gearbox Oil on this run

COMPARISON TO THE MODAL T

Many have compared the Nano with Henry Ford's Model T launched exactly 100 years earlier, in 1908. While the Model T initially cost $850 (equivalent to $20,091 today), Ford refined the assembly line process and by the 1920s, the price of Ford's Model T had fallen to $290 (equivalent to $3,191 today),comparable to the release price of the Nano at US$2,171 as of October 2009.

Live mint said:

Ford Motor Co. is rich because Henry Ford used the assembly-line to produce the Model T in 1908. Ratan Tata is a late entrepreneur, making the Nano in 2008. India is 100 years behind. But we are waking up to the possibility of catching up. I just hope our planners wake up soon.

Times of India also compared the Nano to the Model T:

This raises the question: How have the Tatas accomplished such a task? Pursuing this question a fascinating story unfolds that reminds one of Henry Ford's Model T that was built exactly one hundred years ago (September 1908). Ford wanted to make a car for the multitude, not for the elite, with the best material and the best design that the technology of his time could devise, and he wanted to make it, above all, at a price that was affordable. This is the example that Ratan Tata has followed with determination. When he announced the price of his car in an interview to the Financial Times during the Geneva Motor Show, his colleagues were 'aghast', but he had set his goal.

CHAPTER- 7 CRITICISM, ISSUES & PROBLEMS

QUESTION OF SAFETT MASS MOTORIZATION USED CAR MARKET EFFECT SPONTANEOUS FIRE

Questions of safety
The Nano has an all sheet-metal body made from Japanese and Korean steel, with safety features such as crumple zones, intrusion-resistant doors, seat-belts, strong seats and anchorages, and the rear tailgate glass bonded to the body. Tires are tubeless.

Mass motorisation
As the Nano was conceived and designed around introducing the automobile to a sector of the population who are currently using eco-friendly bicycles and motorcycles, environmentalists are concerned that its extraordinarily low price might lead to mass motorization in countries like India and therefore possibly aggravate pollution as well as increase the demand for oil. The ecology focused German newspaper die tageszeitung feels that such concerns are "inappropriate" as the Tata Nano has lower emissions compared to the average Volkswagen, and that developing countries shouldn't be denied the right to motorized mobility when industrialized countries should be looking to reduce their emissions and usage of cars. Die Welt reports that the car conforms with environmental protection, and will have the lowest emissions in India. In crowded metropolitan cities like Mumbai, Ratan Tata has conceived a scheme to only offer the Nano to those individuals who do not have an automobile already. The Nano will also replace many overloaded and worn-out two-stroke polluting vehicles, both two and three-wheeled. According to Anumita Roychowdhury, associate director of the Centre for Science and Environment in New Delhi, "the low-cost cars will be disastrous" in the current policy and regulatory framework.

Used car market effects

The Nano is alleged to have severely affected the used car market in India, as many Indians opt to wait for the Nano's release rather than buying used cars, such as the Maruti 800 (a rebadged Suzuki Alto), which is considered as the Nano's nearest competitor. Sales of new Maruti 800s have dropped by 20%, and used ones by 30% following the unveiling of the Nano. As one automotive journalist summaries; People are asking themselvesand uswhy they should pay, say, 250,000 Rupees for a Maruti Alto, when they can wait and get a brand new Nano for less in a few months time, a car that is actually bigger.

Spontaneous fire
There have been 30 cases of spontaneous fires occurring inside the Nano out of the first 7,500 cars delivered. The fires have been traced to a short circuit in the combination switch that controls the headlights, windscreen wipers and indicators located in the steering column. Technical experts have also blamed the placement of the battery for contributing to overheating in the wires, the failure of the circuit breaker in tripping during a short circuit episode, and the failure of the fuse to melt when excessive amperage (resulting from a short circuit condition) is detected in the circuit leading to heated wires.

CHAPTER-8 Top Features

THE ENGINE POWER TRAIN PLACEMENT THE DASHBOARD SINGLE MIRROR LIGHT WEIGHT BODY WIPER SMALLWHEELS

Worlds cheapest car Tata Nano is finally here after surmounting all the allegations and doubts. Sadly for its critics, who booed at it, has proved them wrong on many counts. It comes close to stake claim on the world brightest idea in the recent days. It reflects the strength and determination of its creator Mr. Ratan Tata, who despite all odds turned his dream car into a reality. He had made the world to look up and notice India as a giant car market.

But how did Ratan Tata achieved the Rs 1 Lakh mark which was earlier impossible? Rightly, he went in for cost cutting, but how would that translate in to such a low price? While other car companies developed the car and then think of the price, Tata Motors had to work the other way around. They eventually created a wonder car without compromising on the basics of a car technology. Lets take a look on how Mr. Tata and his team framed their budget for the car.

THE ENGINE
Engine is the heart of a car that make mainly supports its mobility. Even the most simplest of the engines in the world are quite complicated. The evolution of engine technology is required to generate power, ensure fuel efficiency, and make no sound at all. Nowadays engines are governed by computers too. This composite work of mechanics also makes it very expensive. So it has been in the case of Tata Nano. But they are to adhere to a price! The German company Bosch came forward to build a low cost but effective engine. Bosch created an engine control unit with half the number of sensors which will deliver all the basic engine works perfectly. When this was tested on Nano, it functioned very well. The engine delivers a healthy 32 bhp power and an average 20 km/l mileage. This was just one of the solutions for the power train by Bosch.

POWER TRAIN PLACEMENT

The Nano is powered by a four stroke 624 cc engine. The engine design has been patented by Tata Motors during the Nano project. It is the first such car to be equipped with single counterbalance motor. The engine has fuel injection and it also has a two valve single overhead cam design, just like the other cars. They also found a unique way to mount it on the ultra-small car. This rear mounted engine configuration is not new, but it has been utilized only by a few companies like Ferrari and Porsche. But rear engines are hard to engineer and is not liked by many car manufacturers. It is considered very cost effective too. Normally in a rear engine and rear wheel drive format a drive shaft is needed to steer the car in desired direction. The Tata Nano design cleverly engulfs the power train giving no hit about its placement. This is placed under the rear seats, the engine can be accessed by folding down the rear seats and opening the lid. Actually, it is pretty hard to access the engine every time you want to. It has to be done through the rear hatch door. It also suggests that it is highly reliable when it comes to breakdowns. The skillfully place engine compartment helps add 21 percent more cabin space than even Maruti 800. It provides an enormous interior space to help accommodate passengers of comfortably into the cabin.

THE DASHBOARD
The instrumentation on the dashboard is very basic in nature. It is cute, but it has clever designing too. The centre console holds the instrument cluster eliminates the need to replace it with a new dash for left and right hand drives. The instrumentation includes speedometer, odometer, and a digital fuel gauge with backlights for nighttime visibility, which makes it a complete set on its own. The curved edges of the dash enhance safety in times of collision. The dashboard also houses to cubby holes that ensure that all personal stuff is take car off. The plastic is hard yet functional for Nano.

SINGLE MIRROR
Tata Motors does not offer a mirror on the left hand side of the car. Cars in India have ever tried this before considering the safety of passengers. But in the west, some luxury car manufacturers have offered specially designed mirrors as an option. For those who cannot do with it, the mirror is offered as an optional accessory. Again, the fuel filler cap is located under the nose rather than the body sides. It will reduce the need to create CNG and LPG cars separately. By removing the fuel filler cap and by not boring holes onto the sides, Tata has reduced costs.

LIGHT WEIGHT BODY

This is where Tata has cut cost enormously. It has designed an extremely lightweight body with an upper monologue frame sitting pretty on the chassis firmly. Tata devised a unique method to seal a monologue frame to the chassis. The light gauge metal body and the reduction of waste in production process makes effective use of funds allocated for the Nano. However, the company safety of passengers is not ignored. The steel frames have crumple zones and intrusion resistant doors. The front bonnet can hold a spare tires.

WIPER
A single piece windshield is bonded into the A-pillar. It holds a single wiper.

The story of the wipers is well publicized after Mr. Ratan Tata asked engineers to reduced wiper count further to lower the cost. Hence the tall single wiper which gives it a neat look. The company stressed that the single wiper should not affect visibility, hence its design is practical.

SMALL WHEELS
Tata Nano achieves its tall boy looks partly because of its small wheels. The car was designed to use small wheel to roll on. Small wheels are lighter which helps provide high performance and better ride quality. These wheels are mounted in only three lugs in contrast with multiple lugs design. The wheel become lighter too, which means easy maneuverability. Further, the tires sizes vary from front to the rear. The treads on the rear wheels are falter than the front ones. This helps balance the vehicle in case of an impact. It also allows a mild under steer at high speeds which is again a safety feature. Nano has a rear ward weight bias too because of the engine. This can pose a slight problem while cornering at high speeds where the rear of the car will behave unlike the front end. This is where the under steer helps balance the vehicle and provides a natural ride. The use of plastic for the bumpers and the lower part of side doors, help considerably reduce dependency on steel. There are beading, hinges and locks which also reduce the cost significantly. The non-opening rear hatches are also some of the places that Tata has reduced costs.

CHAPTER-9 PLANT
NEW PLANT FOR NANO TO COME UP IN GUJARAT TATA MAINTAINS SUSPENSION IN NANO PLANT

NEW PLANT FOR NANO TO COME UP IN GUJARAT

Tata Motors' new plant for Nano to come up in Gujarat Chosen site is at Sanand, near Ahmedabad Tata Motors today announced that the mother plant for the Nano will be relocated to Sanand in Gujarat. Sanand (Gujarat), March 23 (IANS) Even as Tata Motors announced the commercial rollout of the small car Nano in Mumbai Monday, company officials said the main factory here, 45 km from Ahmedabad, will be up and running by this year-end. The $62.5-billion company had zeroed-in on this location after it was forced to pull out of Singur in West Bengal following protests by some farmers backed by the opposition parties over acquisition of land for the project. The Rs.2,000-crore (Rs.20-billion) Sanand plant will have a capacity to roll out 250,000 cars annually. Tata Motors officials said they were also in the process of coming out with an entire range of merchandise to promote the Nano brand. These include caps, key chains, T-shirts and baseball bats. Dealers of Tata Motors are in the process of preparing a dedicated team for brand promotion and bookings for Nano, the worlds least expensive car at Rs.100,000 or $2,000.

Tata Motors hope to start from the second week of April advance bookings for the 624-cc jellybean car, which has a snub nose, a sloping roof and just about room for five to squeeze in. Company officials said arrangements were being made to accept bookings with the existing dealers of Tata Motors, at Westside apparel chain and Croma appliances stores promoted by the group, and select branches of the State Bank of India. Touted as the next revolution in automobiles after the legendary Model T, the Nano will be available in three variants - standard, deluxe and luxury. The base model will have no air-conditioning. The four-door, five-seat car has a small 33-bhp engine at the rear and is targeted at the strong Indian middle class population that aspires to trade its two-wheelers for a much safer vehicle at an affordable cost. With a length of 3.1 meters, a width of 1.5 meters and a height of 1.6 meters, Nano also has adequate ground clearance and can effortlessly maneuver on busy roads in cities as well as in rural areas. The company had received overwhelming support from several states for relocating the plant. After examining various sites in these states and carefully evaluating offers from the respective governments, the company has concluded that the site at Sanand and the offer from the Gujarat Government is in the best interest of the project. The integrated project, comprising the mother plant and the vendor park, will come up on an area of about 1100 acres. The plant, to begin with, will produce 250,000 cars per annum. The capacity is expandable up to 500,000 cars per annum. The project, including Tata Motors' plant, vendor facilities and service providers, will together generate over 10,000 direct and indirect jobs. Speaking at the announcement, Mr. Ratan N. Tata, Chairman of Tata Sons and Tata Motors, said, "The site in Gujarat, already under the possession of the state government, will help Tata Motors establish a new dedicated mother plant with the shortest possible time lag and least possible incremental project cost. This is Tata Motors' maiden venture in Gujarat, and will broad-base the company's manufacturing footprint. We are happy to contribute to Gujarat's strong industrial progress by creating an auto cluster, which will have a cascading impact on the state's economy." While awaiting the Sanand plant's completion, Tata Motors will explore the possibility of manufacturing the Nano at its existing facilities at Pune and Pant nagar, and launch the car in the last quarter of this financial yea

TATA MAINTAINS SUSPENSION IN NANO PLANT

Mumbai:
Tata Motors Ltd said on Monday it would only review its position in the plant for the low-cost Nano car, where work was suspended last week, if it was confident that the viability of the project was not impinged. Special: Decks cleared for Tata's Nano plant Tata Motors, India's top vehicle maker, said it was "distressed" at the limited clarity on the outcome of talks between the government of West Bengal, where the Nano plant is located, and protestors who had caused disruptions. Tatas` Nano: Troubled ride "Tata Motors is obliged to continue the suspension of construction and commissioning work at the Nano plant," it said in a statement. Tata Motors shares rally after protest called off. "We will review our position only if we are satisfied that the viability of the project is not being impinged, the integral nature of the plant and ancillary units are being maintained and all stakeholders are committed to developing a long-term congenial environment for smooth operations of the plant." Will Tata Motors resume work at Singur?

Farmers in Singur, who had forced Tata Motors to suspend work last week, said on Sunday they were ending their protest after the state promised to return some land.

CHAPTER-10 INTERVIEW WITH RATAN TATA

MAKING OF NANO NANO TO CHANGE OUR MARKET POSITION

MAKING OF NANO
Nearly 72 hours before the launch of his dream car, Tata Group chairman Ratan Tata spent 90 minutes with ET for a one-on-one on the making of the people's car. He shares the trials and tribulations he faced during the journey. Here is the full text of the interview.

Q: Are you nervous? Is this much bigger than the launch of Indica?
I think I was much more nervous during the launch of Indica because we had never been in car manufacturing before. We were venturing into a new segment. We are again venturing into a new segment but in a product line in which we have 10 years of experience now. At the time of the Indica launch, you did not know whether the market would accept you becoming a car manufacturer from a truck manufacturer. more We took some widely publicized goals at that time that we would be as big as the Ambassador, or we would have the same size of the Maruti or we would have a diesel engine. We made those statements. We didn't know those would be the kind of things the market would go for. So, I think at that time we were much apprehensive and nervous than were to day.

Q: What are the innovations that have made the Tata Nano possible, from design to product finalization?
Initially I had conceived a car made by engineering plastics and new materials, and using new technology like aerospace adhesives instead of welding. However, plastics didn't lend themselves to the volumes we wanted because of the curing time required. Volumes mean the world in this context: if we produce this car and if it is for the wider base of the pyramid, we can't settle for small numbers because then the purpose is defeated.

Q: When future versions of this car hit the market, will they not be in direct competition to the Indica?

No. The way I see it, this vehicle will cannibalize some of the lower-end car market and some of the higher-end motorcycle and scooter market. It will eat into both of those markets but it will also create a market of its own. It will expand the market by creating a niche that did not previously exist. It may well cannibalize some of the higher-end car market, but to a small extent, and probably only when people look to buy a second or third car.

Q: Why are people attacking only the Tata Group?

I think it comes from vested interests. Let's ask ourselves why the car is attracting so much attention and why it is being attacked so much. My view is that if the car were not

attracting all this attention, it wouldn't be attacked. This car has provoked serious apprehensions in some manufacturers. There are people in our company even who fear what it will do to the Indica. Do you think there's a concern among three-wheel manufacturers that it might replace their vehicles? Yes, there is because some three-wheelers cost more than what the Nano will cost. All in all, I think people are attacking us because they are apprehensive.

Q: Has the Indica experience helped in the creation of the Nano?

Oh yes, enormously. The Indica experience and the Ace experience have helped; Ace especially because it was another tight, cost-based exercise.

Q: From the Rs1-lakh car to products costing many millions, if the Jaguar deal comes through: What next for the Tatas on the automotive front?
I won't comment on the Jaguar deal, but to answer your question, we are not in an acquisitive mode. That's not our strategy for growth. Q: The Tatas have been on the front pages constantly of late-- what is it like being

in the middle of it all?

Embarrassing and unpleasant. Whenever you are on the front page, you are also each time, and more so in India than elsewhere in the world creating detractors and critics. For every action there is some kind of reaction, somebody who is hunting for something to criticize. And most often it is the reaction that people remember.

NANO TO CHANGE OUR MARKET POSITION

Tata Motors' [ Get Quote ] Rs 1-lakh car Nano will dramatically change the
company's market position, reach and visibility, although high fuel prices have cast a cloud on overall vehicle sales, company chairman Ratan Tata said on Tuesday. In his statement to shareholders of Tata Motors, he said that although the company registered a growth of 5.5 per cent in the commercial vehicles (CVs) segment, it had lost market share. Tata said the company introduced several new models and variants of CVs, but was unable to exploit the full market potential due to inadequate deliveries of power trains and components from major suppliers. He said Tata Motors would have an exciting future ahead as high volumes of the Nano range would change the company's fortunes. Tata said: "The company's new plant at Singur in West Bengal is expected to go into operation in the last quarter of this calendar year." He said that these manufacturing facilities would be expanded to meet the demand in the domestic and international markets in the future. New variants of the Nano were also currently under development to meet the new environmental and fuel price challenges.

Referring to the acquisition of British auto brands Jaguar and Land Rover Tata said the two brands would add global scale, profits and visibility to Tata Motors, enabling it to take its place in the global auto industry as a credible international auto company. Expressing concern, Tata said that there would be an enormous and unprecedented rise in material costs in steel and tires. With the present economic scenario, the company would have to manage the completion of the Singur plant and introduction of Nano in the market. Referring to fuel prices, he said higher fuel prices would have a negative impact on vehicle sales.

'In addition to this, the company's operations would also have to absorb the cost of JLR acquisition and deal with its integration. "These challenges appear to be daunting," Tata said. To fund the acquisition of JLR, the company was raising Rs 7200 crore (Rs 72 billion) through a rights issue and $500 million to $600 million through an international offering of equity or cost effective quasi-equity instruments. Tata also noted that 'the year ahead will be no more daunting than the challenges they have faced in difficult years in the past.'

CHAPTER-11 ANNEXES
QUESTIONNAIRE BIBLIOGRAPHY

QUESTIONNAIRE
1. What is the first thing, which comes into your mind when you think about NANO?.................................................................................................................... ................................................................................................................................. ................................................................................................................................. ............................ 2. Instead of purchasing a Bike, will you prefer to go for the NANO? 1.Yes 2.No 3.Cant say 3. Which feature of NANO attracts you most, that inspires you to go for NANO? 1.Price 3.Mileage 5.All the above 2.Design 4.Interior space 6.Cant say

4. Which color of NANO would you prefer? 1.Red 3.White 2.Blue 4.Yellow

5.Silver

6.Other, Specify............

5. For what purpose would you like to use NANO? 1. 2. 3. 4. 5. Will offer it to your children to use it in place of a two wheeler. Will use as family car for shopping and travel. Will prefer as a taxi. Would like to offer as gift. Any other, specify.................................

6. Do you think NANO is people's car? 1.Yes 3.Cant say 2.No

7. Will you recommend NANO to your friends and relatives? 1.Yes 3.Cant say 2.No

8. Which small car would you prefer to buy? 1.Maruti 800 2.Tata NANO 3.Other.. 9. How long can you wait for NANO? 1. 1-2 months 3 4-6 months 2 .2-4 months 4. Cant wait

10. If the price of NANO rises, would you still purchase it? 1.Yes 3.Cant say 2.No

11. Will Tata be able to maintain the price of NANO in future if there is hike in cost of raw materials? 1.Yes 3.Cant say 2.No

12. How will you feel if NANO is used as a taxi? 1.Embarrass 3.Cant say 2.Dont care

13. Will there be traffic problem with the introduction of NANO on Indian roads? 1.Yes 3.Cant say 2.No

14. Can you trust NANO for safety? 1.Yes 2.No 3.Cant say Survey

BIBLOGRAPHY
1. 2. 3. 4. 5.

www.tatamotors.com http://www.tatapeoplescar.com http://www.nanocar.com TATA MOTOR National Garage Raipur, Chhattisgarh Magazine of tata Groups