1. 1. Leadership Perspective Group 4 Amal Dev Alex Anjuleen Aparna Jeby Moksha Case Study Analysis Planning Hurdles for the $2,500 Nano Car
2. 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 mans Car Rs 1 lakh. Caught attention of Hyundai and Renault to make low cost cars.
3. 3. 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.
4. 4. Problems Faced Cars introduction came when the companys 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
5. 5. 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.
6. 6. 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
7. 7. 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.
8. 8. 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.