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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The People's Car Contd...

Commenting on the Nano, Luca Cordero Di Montezemolo, Chairman of Fiat⁷ and Ferrari⁸, said, "I congratulate you [Tata Motors] on three things - a modern and contemporary car, design, sufficient internal volume, designed and developed entirely on your own."⁹

The Tata Nano project was the brainchild of Ratan Tata, Chairman of the Tata Group. The project to make the cheapest car in the world had started in 2003. The engineering team that made the Nano achieved the cost target by implementing an innovative design and reducing cost by paying attention to each and every component of the car.

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From the engine, steering, wheels, and tires to the windshield washing system, gear shifter, and central console, every component was given special emphasis in an effort to cut down cost. During the launch of the Nano, Ratan Tata said, "Today, we indeed have a People's Car, which is affordable, and yet built to meet safety requirements and emission norms, to be fuel efficient and low on emissions. We are happy to present the People's Car to India and we hope it brings the joy, pride, and utility of owning a car to many families who need personal mobility."¹⁰...

Excerpts >>

7] Italy-based Fiat SpA or Fabbrica Italiana Automobili Torino is involved in manufacturing automobiles and engines. As of 2009, Fiat was the sixth largest car manufacturer in the world.
8] Italy based Ferrari SpA is a manufacturer of sports cars. Ferrari's parent company is Fiat SpA.
9] "The VIPs Who Checked the Nano," http://business.rediff.com, March 24, 2009.
10] Richard S, Chang, "Tata Nano: the World's Cheapest Car," http://www.nytimes.com, January 10, 2008.

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