The Nano Tata - Logy

The Nano Tata – LOGY suitably named for its high-tech, small size design, was a revolutionary offering aimed at India’s growing automotive mass market. This is a car was developed by Indian manufacturer Tata Motors. It was officially unveiled at the Auto Show in New Delhi 2008. In India, the sales price of the Nano with the level of basic equipment was approximately 100,000 Indian rupees (about $2,000 or € 1,500). As a "hundred thousand" translated into Hindi language as "lakh", the car has been called by the media as "lakh car" ("the 1-lakh car" in English). Nano´s safety record was an important competitive advantage. Many cars in India, for example, were sold without airbags or antilock brakes, considered standard features in the west but this not. Additionally, the Nano was alsoexpected to affect the used car market, offering econscious budget customers a climate-friendlier option that is an important issue in this country. The car was designed with some functional characteristics like replicability, modularity and repairability, for example, the engine could be removed from underneath from its cradle conveniently, when necessary.
Tata made a strong link between economic andsocial value creation that embody Tata´s promise for quality indigenous innovation

1.How sustainable is the Nano ?

In 2007, Tata´s brand had an estimated value exceeding US$11 billion with a In 2007, with a 16.5 percent of the Indian market.

In India, the auto industry sold 1.5 million cars, and by some estimates India expected to pass China in 2008 eith the fast growing market.The Nano car was produced with a low cost structure, were identified five major cost areas: Engine and transmission (30% of the sales price), Body (9%), electricals (9%), suspension and wheels (11%) and interiors (7.5%), with a 5.5% gross profit margins.

The next Image show the cost structure of the Nano car with the profit Margin.



2.What are it´s social,economic and environmentalconsequences?

3. What key issues and tensions sarround the introduction of Nano ?
The issues and tensions that surrounded the introduction of the Nano model into the Indian Market were basically related to costing, security and environmental impact. Just before Tata started the production there was an strike from the community due to the underpayment for the terrain that was going to be usedto install the production facilities, the strike caused delays on the launch and a reduction of the units that were estimated to be sold for the first year, this delays soon or later were going to increase the costs and the Nano model wouldn´t be as affordable as they promised that was going to be. But beyond the strike there was a concern: Tata could be able to maintain such a low costs on thelong run?. The dilemma compromised Tata´s corporate values and integrity, in the case that they couldn´t maintain costs, were they going to spare on security ware, quality of materials, quality tests, security tests and environmentlas tests in order to satisfy demand putting on risks people’s lives and quality of living.
Whether or not they sacrificed quality and security there was the issue thatif the Indian infrastructure and environment were prepared to sustain the increasing quantity of vehicles derived from the penetration of four wheeled vehicles into the medium-low class.

4. What are the competitive and political motivations that surround the introduction of Nano?
First we need to understand the origin of the need. India, with 1,21 billion people, is mostly a motorcycle country.With large families and a 60% of youngsters, transportation is an issue of both quality of life and safety.
Giving an answer to this need, Tata had the political motivation to give to India and the rest of the world a safe, affordable and all-weather form of transportation that would change the low and middle class quality of life.
In terms of competitive landscape, Tata with the Nano,...