The Tata Nano Project - Making of the World's Cheapest Car

            
 
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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Case Details:

Price:

Case Code : OPER078 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

Themes

Product Design / Product Development

Case Length : 16 Pages
Period : 2003-2009
Organization : Tata Motors Ltd.
Pub Date : 2009
Teaching Note : Not Available
Countries : India
Industry : Automobiles

Abstract:

The case discusses the making of Tata Nano, the world's cheapest car, manufactured by India based Tata Motors. On March 30, 2009, Tata Nano was launched with an ex-factory price tag of INR 100,000 (about US$ 2000). The case explains the design and development process of Tata Nano.

The car was the result of a five year research and development project carried out by Tata Nano development team. While developing the car, Tata Motors and its suppliers constantly made efforts to reduce the costs while ensuring quality of each and every component including engine, steering, wheels, tires, windshield washing system, gear shifter etc.

Operations Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

Analysts opined that Tata Nano had created a new segment in the passenger car market. However, they were concerned about the company's lack of capacity to fulfill high demand. They also argued that considering the low margins the company would get, it would take a long time for the project to break even. The case ends with a discussion on the challenges Tata Nano might face in the future.

Issues:

To understand the challenges in developing an innovative, cost-effective product.

To study the Tata Nano project with a focus on design and development process of the car.

To understand the efforts put in by Tata Motors to cut down the costs at every stage of development and production of Nano.

To analyze the challenges that Tata Nano may face in future.

Contents:

  Page No.
The People's Car 1
Background Note 2
Nano - The Car 3
The Nano Project 4
Managing the Supply Chain 7
Tata Nano Vs. Maruti 800 7
The Challenges 9
Exhibits 11

Keywords:

Tata Motors Ltd., Tata Nano, Small Car, World's Cheapest Car, Value-for-Money Car, Costs, Product Design, Product Development, Ratan Tata, Automobile Safety Standards, Engine Induction System, Maruti 800, Dealers' Margin, Creating New Markets, Business Model, Fuel Economy, Price Leadership, Cannibalization of Sales

The People's Car - Next Page>>


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