A case study of Planning hurdles for the TATA Nano how it all started and details about it. All details in a crispy manner

1. Leadership Perspective
Group 4
Amal Dev
Alex
Anjuleen
Aparna
Jeby
Moksha
Case Study Analysis
Planning Hurdles for the $2,500 Nano
Car

2. Introduction
 The Tata Nano is a city car manufactured by Tata
Motors.
 50 miles per galoon car was designed to lure India's
burgeoning middle classes away from two-wheelers,
it received much publicity.
 After having successfully launched the low cost Tata
Ace truck in 2005, Tata Motors began development
of an affordable car that would appeal to the many
Indians who ride motorcycles.
 The Poor man’s Car Rs 1 lakh.
 Caught attention of Hyundai and Renault to make
low cost cars.

10. A car that is available for just $2,500 or a little over one lakh Indian Rupees
was under investigation by Tata Motors due to reports of electrical fires.
There are reasons for its failure.
The problems all began when there was an agitation and the plant at Singur
had to be closed down.

15. Problems Faced
 Car’s introduction came when the company’s earnings fell
in mid 2008.
 Stock price was hurt after acquisition of Jaguar and Land
Rover.
 The rise of price of Raw materials.
 40000 protestors in singur complaining about abduction of
farmer lands.
 The company had to shift the Nano project to Sanand in
Gujarat on October 3, 2008, following intense protests
against acquisition of farrmlands, led by Mamata
Banerjee's Trinamool Congress.
 They demanded that the land should move back to the
agriculturists and giving the money which they had paid at

16. Contd…..
 The relocation lead to delay of the Nano Car.
 Availability of labours in Gujrat is less when
compared to Kolkata.
 Postpone of the release of Nano made
competitors bad mouthing the NANO.

18. Major Drawback
 Crash safety
In 2014 a Nano was crashed
for NCAP by ADAC in Germany. Despite Tata's
claim that it was expecting 4 stars, the Nano
actually achieved zero stars.
Key Concerns
 Safety
 Emissions
 Congestions

20. OVERCOMING THE PROBLEMS OF TATA
NANO
 JAGUAR,LAND ROVER ISSUE: The move was also a
significant departure for Tata Motors, which, until then, had
experience mainly in making trucks and commercial vehicles.
Well, three years on, sales of Jaguar Land Rover, under the Tata
group, have made a spectacular rebound. By the end of March
2011, 80 percent of Tata Motors' $2.04 billion annual profit came
from the JLR unit alone.
 NO CHALLENGE FOR NANO: No other car manufacturer in
India has come close to matching the aggressive pricing of the
Nano.
 UPGRADED VERSION AND NEW ADVERTISEMENTS: They
had a good marketing strategy that reached millions of
customers.
 CHANGE FROM PETROL TO DIESEL WHEN PRICE OF
PETROL INCREASES.

23. Conclusions and Learnings
 Wrong planning and demand forecasting was a
major mistake committed.
• Tata's business model fits to push type model, mass
production. According to this model the sequence is:
design-make-sell. Tata failed at the design stage.
• We have seen that all the reasons for failure are already
at this stage (raw materials, European standardization,
the use of diesel and non matching infrastructure).
• Once planning fails, the sequence is broken, causing a
drastic drop in sales and the failure of Tata Nano project.