Macroenvironmental Factors Affecting Automobile Industry
Tata Nano Environmental SWOT
1.
2. INTRODUCTION
“I observed families riding on two-
wheeler the father driving the
scooter, his young kid standing in
front of him, his wife seated behind
him holding a little baby. It led me to
wonder for such a car which is safe &
affordable to any middle class
family.”
- Ratan Tata
4. ECONOMIC FACTORS
Opportunity
Inflation rate: (-0.21)
Per Capita Income
Rs. 18,885 in year 2002-03
Rs. 38,084 in year 2008-09
Market share of two Wheelers is
76.5% Prospects
5. ECONOMIC FACTORS (CONTD.)
Threats
Fuel price hikes may prove challenging
for Tata Nano.
Increase in material cost like steel and
tires
7. COMPETITION FACTORS
Threats
Direct Competition: Maruti Suzuki Alto, Reva
Competition
IndirectCompetition: Second Hand/Used
Competition
Car Market
Substitutes:
Substitutes Two Wheelers, Public transport,
Tube Rail & Metro Rail, Auto Rickshaw
New entrants: Bajaj-Renault-Nissan Small
Car, Ajanta Group Small Car, Mahindra 1.3
lakh Rupees car, Honda Siel
8. LEGAL FACTORS
Opportunities
State Bank of India’s Loan
11.75% for five Years
12 % for Seven Years
MOU with UCO Bank for financing Nano
Agreements with 15 Banks for Loans
100% exemption on electricity duty for
Production of Nano
10. CONSUMER CHOICE DECISION
FACTORS
Opportunities
Affordable Price
Small Family Car
World’s cheapest car
Comfortable seat for four person
Available in both petrol and diesel
engines
11. CONSUMER CHOICE DECISION
FACTORS (CONTD.)
Opportunities (Contd.)
Average of 22 Kilometers per liter
Available in three different models
Tata Nano Standard
Tata Nano CX (Deluxe)
Tata Nano LX (Luxury)
12. PRODUCT FACTORS
Strengths
Small Car.
Available with Air Condition, power
window in Luxury model.
Available in both petrol and diesel
engines
Warranty: 18 months or 24,000 km,
whichever is earlier
13. PRODUCT FACTORS
Weaknesses
No power steering
Used partially inexpensive polymers
or biodegradable plastics instead of
metal
Lesser safety as fuel tank is right
under the front seats.
14. PRICE FACTORS
Strengths
Model Features Price (Rs)
Nano Std - 1,23,000
Nano Deluxe AC 1,51,000
Nano Luxury AC, Power Window 1,72,000
and Central Locking
There is no such car available in present
market that comes in price lower than
Nano
15. POSITIONING FACTORS
Strengths
USP : ONE LAKH RUPEES CAR,
THE PEOPLE’S CAR
World’s Cheapest car
Common man car
Small Family car
16. DISTRIBUTION FACTORS
Strengths
Tata Nano is a product of Tata Motors
Ltd.
Tata Motors already has a distribution
alliance with Italian car maker Fiat Spa.
Fiat to sell Tata Nano in overseas market.
Booking of Nano can be done in 146
cities across 29 states all over India.
17. CRM FACTORS
Strengths
Financial Bond
Low Price car
Cheapest Car in the world
Value for Money
Social Bond
Small Family Car
18. CRM FACTORS (CONTD.)
Strengths (Contd.)
Structural Bond
Tata’s good image in market
Satisfaction of customer with Tata Indica.
Customization Bond
Fulfilling the latent need of middle class
people to have a car.
19. CRM FACTORS (CONTD.)
The first three customers received their
Nanos from none other than the chairman
of Tata Group, Ratan Tata, this was the
first time in the history of Indian Industry
a customer receives the keys of car from
the Owner of car company.
