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

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Case Details:

Case Code : OPER078
Case Length : 16 Pages
Period : 2003-2009
Organization : Tata Motors Ltd.
Pub Date : 2009
Teaching Note :Not Available
Countries : India
Industry : Automobiles

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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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Excerpts Contd...

Managing the Supply Chain

Although in the beginning, the auto part suppliers of Tata Motors were skeptical about the project, they were later convinced that they also could contribute to achieving the cost target as well as improve their own bottom lines (Refer to Exhibit VII for auto part suppliers of Nano)...

Tata Nano Vs. Maruti 800

The Tata Nano's closest competitor in terms of price was the Maruti 800, made by Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan. Analysts pointed out the fact that the ex-showroom price difference of the standard models of the Tata Nano and the Maruti 800 was about Rs. 60,000 (Refer to Table I for price comparisons of the basic model of Tata Nano and Maruti 800 in different Indian cities)...

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The Challenges

While Tata Motors launched the Tata Nano at the promised price of Rs 100,000 (ex-factory), most industry experts opined that the Nano would face many challenges in the near future. They said that the decline in the raw material costs between January 2008 and March 2009 had helped Tata Motors maintain the price target of the car (Refer to Table III to know about the change in the cost of raw material)...

Exhibits

Exhibit I: Tata Nano
Exhibit II: Tata Motors - Product Portfolio
Exhibit III: Tata Motors' Financial Performance
Exhibit IV: Tata Motors - Stock Price Chart (January 2008 - January 2009)
Exhibit V: Prices of Different Variants of Nano in Delhi (In Rupees)
Exhibit VI: Technical Specifications of Tata Nano
Exhibit VII: Auto Part Suppliers of Tata Nano

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