The People’s Car

Evolution of Innovation

Inputs/Idea Requirements/Constraints

Design and Development

Manufacturing Marketing & Distribution

Genesis

TATA Group

• Founded by Jamshetji N Tata in 1868• TATA Motors• Operations in more than 85 Countries• Strong Focus on R&D

Requirements

•Cost•Regulatory and Safety Standards•Performance

Challenges

• Small size can’t reduce Cost that much• Still a Large Barrier from 2 Wheeler to 1 Lakh

considering Maintenance Cost• 85% Outsourcing• Location of Base Plant• Uncertainties Associated with New

Product• Operational Cost• Complicacy with Product

Specification

Design & Development

• Rear-Engine Rear-Wheel Drive• Two-Cylinder Engine w/o Turbo-Charging, Inter-

Cooling etc.• Capacity of Engine increased from 543 cc to 586

cc and eventually 624 cc.

Manufacturing

• Procurement of Raw Materials to facilitate Suppliers• Setting Up of Plant• Land Acquisition Challenges• Quick Relocation

with Simultaneous Production

TATA nano

Technical Specifications• Price: 1.0 lakh onwards• Engine: 624cc, in-line, twin-cylinder• Power: 34PS@5500rpm• Torque: 48Nm@2500rpm• Gearbox: 4-speed manual; Cable operated• 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.

Distribution & Marketing

• Through Non-Traditional Channels• Satellite Mini-Factories• Competition Analysis• “Now You Can”• Necessary v/s Desirable• Lakhtakiya• SMA Campaigns

Comparison

Impact of Nano

• New Ventures• Drop in Price of Second Hand Cars• India's claim-for-fame in the

International-Media • Employment Opportunities across

India

Estimation Analysis• Initial Capacity 50,000 Cars• Sanand Plant Capacity to be 250,000• Sales through Booking System• Demand Assessment

Takeaways

• Innovation for the Masses• Coordination among Suppliers, the Design Team

and the Sourcing Team• Issues with Marketing

Thank You !!