INTRODUCTION

which it hasn't experienced since the industry's inception. In 2010, a shift in the
balance of power within the global auto industry occurred when the world's emerging
growth market led by China, India, Brazil, and Eastern Europe accounted for slightly
more than one-half of the 73.2 million light vehicles sold worldwide. This marked the
first time in the 120-year history of the auto industry that the world's mature market
led by the U.S. and Canada, Western Europe, and Japan didn't account for the lion's
share of sales. Since then, emerging growth markets have extended their lead in the
global sales race for light- vehicles (cars, SUVs, vans, and light trucks under six tons
gross vehicle weight), with 52% of the worldwide market in 2011 and 54% in 2012.
More specifically, the automotive industry in India is emerging as one of the fastest
growing automotive markets in the world and is the seventh largest in the world. The
Indian automotive industry is going through a phase of rapid transformation and
growth, driven chiefly by growth in the economy and infrastructure development.
Automobile sales volumes have grown at a CAGR of 13.1% during FY06-FY12. The
automotive industry's contribution to the national GDP has risen to 6% presently from
2.77% in 1992- 93. However the automobile industry in India has seen distinct shift in
demand Tata Nano - history and origin The proposition that prompted Tata to think
about a people's car was a social concern. On a wet August night in 2003 Mumbai,
when Tata was driving back home from his office Bombay House in Flora Fountain,
he saw a young couple travelling with their two children on a two- wheeler and was
struck by the enormous risks of riding on a wet road. The thought of a small car
germinated in his mind and a week later, on a visit to the Tata Motor's plant in Pune,
he shared his thoughts with MD Ravi Kant. Instinctively, his first query was whether
the two- wheeled scooter could be made safe. "The first doodles," in Tata's words,
"were sketches of a two-wheeler with a bar around it and some weather-proofing.
"Thereafter, a core team of 500 (including those in charge of setting up the plant)
worked on the concept for four years. Indeed the first thoughts centered on a door-less
four-seater that was more a quadricycle than a car. The design envisaged the use of
plastic weather-proofing of the kind seen in rickshaws and contemplated using new
materials. But somewhere down the line, the ideas ran into a conflict with Tata's brief.
It was simple: it would seat four, have a low operating cost and meet all safety and
emission standards. The team dumped the nascent design and focused on the process
of building what would be a car differently. Accordingly Ratan Tata, former
Chairman, Tata Motor's, shared his vision of making 1 lakh car at the Geneva Motor
Show, in 2003. There was cynicism and doubt from all quarters. Tata's ambition was
deemedpatterns across vehicle categories in the last few years.
Traditionally, the Iautomobile market has been dominated by the two wheeler segment
which accounted for almost 75% of the automobile sales in the country but since, 2005
passenger car segment has boomed. The Passenger car sales stood at 1.89 million units
in 2012-13 where as the production of passenger vehicles in the country was recorded
at 3.23 million in 2012-13 and is expected to grow at a compounded annual growth
rate (CAGR) of 13 per cent during 2012-2021, as per data published by the
Automotive Component Manufacturers Association of India (ACMA) and also
According to SIAM (Society of Indian Automobile Manufacturers), the Indian
passenger car market is expected to grow from the current 2.5 million to 4 million
units by 2015 Within the passenger vehicle segment although the. demand for high-
end cars continues to be strong: the small car market continues to dominate the Indian
market. Thus India's burgeoning small car market holds huge potential because of the
accelerated growth of lower middle class in India (As per Mc Kinsey estimates, by
2025, the Indian middle class is expected to grow from 50 million to 550 million).
Indian middle class propensity for low cost fuel efficient cars and the youthful
population (over half the population is less than 25 years of age and India has the
highest proportion of population below 35).

Tata Nano - history and origin

The proposition that prompted Tata to think about a people's car was a social concern.
On a wet August night in 2003 Mumbai, when Tata was driving back home from his
office Bombay House in Flora Fountain, he saw a young couple travelling with their
two children on a two- wheeler and was struck by the enormous risks of riding on a
wet road. The thought of a small car germinated in his mind and a week later, on a
visit to the Tata Motor's plant in Pune, he shared his thoughts with MD Ravi Kant.
Instinctively, his first query was whether the two- wheeled scooter could be made safe.
"The first doodles," in Tata's words, "were sketches of a two-wheeler with a bar
around it and some weather-proofing. "Thereafter, a core team of 500 (including those
in charge of setting up the plant) worked on the concept for four years. Indeed the first
thoughts centered on a door-less four-seater that was more a quadricycle than a car.
The design envisaged the use of plastic weather-proofing of the kind seen in rickshaws
and contemplated using new materials. But somewhere down the line, the ideas ran
into a conflict with Tata's brief. It was simple: it would seat four, have a low operating
cost and meet all safety and emission standards. The team dumped the nascent design
and focused on the process of building what would be a car differently. Accordingly
Ratan Tata, former Chairman, Tata Motor's, shared his vision of making 1 lakh car at
the Geneva Motor Show, in 2003. There was cynicism and doubt from all quarters.
Tata's ambition was deemed unrealistic and critics wondered how it would be possible
to make a car at almost half the price of the cheapest car (Maruti 800) available in the
market. Nevertheless, Nano was finally unveiled in the 9th Annual Auto Expo on 10th
January 2008 at Pragati Maidan in New Delhi, India; its successful development was
welcomed with rapturous applause. And, when it could not be manufactured in the
originally envisaged green-field plant at Singur there was disappointment all round
that one of the best indigenous industrial marvels of India was being hindered. Well-
wishers followed Nano's manufacturing journey from Singur in West Bengal to
Sanand in Gujarat and appreciated Ratan Tata's commitment and gumption to
commercialize Nano despite the multitude of challenges and finally Nano was
commercially launched on 23rd March 2009.
The word "Nano" connotes high technology and small size. The Tata Nano's design is
such that it offers an incredibly spacious passenger compartment which can
comfortably seat four adults. With a length of just 3.1 metres, width of 1.5 metres and
height of 1.6 metres, the Tata Nano has the smallest exterior footprint for a car in India
but is 21% more spacious than the smallest car available today. A high seating
position makes ingress and egress easy. Its small size coupled with a turning radius of
just 4 metres, makes it extremely maneuverable in the smallest of parking slots. The
engine enables the car to have a top speed of 105 kmph and negotiate inclines with a
gradeability of 30%. Its fuel efficiency of 23.6 km/litre, certified by the Automotive
Research Association of India (ARAI) under mandated test conditions, is the highest
for any petrol car in India. The high fuel efficiency, coupled with a low kerb weight of
600 kg, ensures that the Tata Nano-at 101 gm /km - has the lowest CO2 emission
amongst cars in India. Tata Motor's has reportedly filed 34 patents related to the
innovations in the design of Nano .The three trim levels available at launch were Tata
Nano Standard, Tata Nano CX and Tata Nano LX. Based on the Society of Indian
Automobile Manufacturers (SIAM) Automobiles classification, Tata Nano is
classified in Al segment, i.e. a mini car.

OBJECTIVES
The ultimate goal by developing the Tata Nano was a low price tag without
compromising on safety and comfort. The development team of Nano worked four
years to design the car at low costs. The benchmark of the Nano was the Maruti 800
The result was a vehicle that was 8 percent smaller externally and 21 percent more
spacious internally than the Maruti 800. The Nano was designed in conformance to
Indian and European emission standards. Passing the full frontal crash test obligated
for India and the offset and side crash test required internationally was a condition.
All Nano’s components had to be designed from scratch, without using any parts of
other cars produced by Tata Motors. This circumstance made possible to develop new
production technologies and design features that were in accordance with the Nano's
specification and production volumes.
The result was a vehicle that was 8 percent smaller externally and 21 percent more
spacious internally than the Maruti 800. The Nano was designed in conformance to
Indian and European emission standards. Passing the full frontal crash test obligated
for India and the offset and side crash test required internationally was a condition.
All Nano’s components had to be designed from scratch, without using any parts of
other cars produced by Tata Motors. This circumstance made possible to develop new
production technologies and design features that were in accordance with the Nano's
specification and production volumes. The result was a vehicle that was 8 percent
smaller externally and 21 percent more spacious internally than the Maruti 800. The
Nano was designed in conformance to Indian and European emission standards.
Passing the full frontal crash test obligated for India and the offset and side crash test
required internationally was a condition.
All Nano’s components had to be designed from scratch, without using any parts of
other cars produced by Tata Motors. This circumstance made possible to develop new
production technologies and design features that were in accordance with the Nano's
specification and production volumes.[13] The Tata Nano was designed with several
objectives in mind, including:
- Creating an affordable car for the masses in India.
- Offering a safer alternative to motorcycles and scooters.
- Providing a means of transportation for families in rural areas.
- Addressing urban congestion with a compact vehicle suitable for city driving.
- Showcasing innovation and engineering prowess by creating a low-cost car with
minimal environmental impact.
 Tata Nano - positioning strategy

Every consumer is highly unique and a complex human, yet there are many things
consumers have in common when it comes to buying. Many factors are involved in
their buying decisions. According to H. S. Adithya (2013) while selecting a car, the
consumers considers many factors like price, fuel economy, driving comfort
maintenance cost, attractive model, status symbol, resale value, latest technology and
brand image and in India companies try to use these factors as differentiating planks to
develop their positioning strategies. Tata Motor's wanted to develop the effective
positioning strategy for Tata Nano in India. Because one of the most important aspects
of successfully marketing a product is "Positioning. In fact, brands can succeed or fail
depending on how they are positioned. As the target customers for Tata Nano were
lower and middle income families, who aspire to upgrade to 4- wheelers from being 2-
wheeler users and since many of such families stay away from purchasing 4- wheelers
primarily due to the affordability factor Management at Tata Motor's tried to focus on
the price factor and developed "Price Positioning Strategy" for Tata Nano. Tata Nano
tried to position itself as the most Affordable Car in the world. The former Chairman
of Tata, Mr. Ratan Tata, has envisioned Tata Nano to become a "People's car.
 Why Nano Failed
Defensive mindset
One key issue for the Nano's failure was its marketing. A potentially game-changing
innovation, Tata made Nano look utilitarian but tagged it as "cheap" in a market where
buying a car is associated with social status and prestige unlike in the west
Poor perception
The launch price of the two Nano variants was between Rs 1.2 lakh and Rs 1.5 lakh,
which was perceived as 20- 50 per cent higher than the proposed "one lakh car". Nano
remains priced at a range where it is too expensive for the lower middle class and too
shabby for the upper middle class. The class in between.n always looks to the upper
class and upper middle class, and thus avoided the product altogether. Due to the low
engine displacement, consumers did not look at Nano as alternative to motorcycles for
driving in highways or long distances
Production delays
Tata also faced political problems and had to shift the plant location, which led to
production delays. Transfer of the whole plant significantly added to the product's
cost. The initial waiting period was too high, making several customers go away
empty handed when the company could have potentially flooded the market. And now
due to inflation, Nano's prices have further increased due to increase in the prices of
raw material such as steel, rubber and others
Product deficiencies
It is the intercity transportation that middle class often needs the car.. However, due to
low ground clearance, Nano is terrible on these roads. Also, within a few months of
initial sales, technical problems were found in the product and reports of Nano
catching fire weakened the trust for the brand as a whole.
Inability to manage PR
Everyone got to know of the incident where a Nano caught fire; no one got to know,
how many Nanos are running beautifully. And as it stands, the targeted segment for
the car were first-time buyers, who get easily rattled by such news
Attitudinal issue
Tata has traditionally been an SUV and HCV manufacturer, making products with low
volumes and high margins. In the case of Nano, the matrices went upside down. The
team wasn't aligned attitude wise, to push for the desired number of vehicles that
needed to be sold for a low margin product.
Tata's strategies for revival

Tata Motor's tried to correct its 4P's, Firstly Tata Nano was re-engineered to fix the
issues related to the fire and customers were offered free safety upgrades for, their
Nano.
Secondly In September 2010, Tata Nano tried to reach its target segment through
electronic media channels but the advertisements have unfortunately been featureless
and catering again to the theme of affordability. Especially with cars people want to
own something they can aspire for and be proud of. They want to feel excited about it.
On retrospection, the first ads were perhaps not the most appropriate. They showcased
couples in traffic ensconced in Nano, while those on two wheelers stared at them
balefully. The focus in advertisements has only been on safety and relative comfort
over the two-wheeler but nothing exciting or incredibly desirable. The next campaign
focused on the tier 2 cities with bad roads and little or no inclination to move things
along., with an ad that featured a young girl in a decidedly rustic setting. awaiting the
family Nano. This further hit the car sales. Tata Motor's also placed a new and
unconventional distribution system, Tata Motor's set up 210 'F Class showrooms', each
only about 500 sq ft in size and stocking just one car in smaller towns, and hired 1,200
people to man them. The F-class showrooms are less intimidating than the 3,000-4,000
sq ft conventional showrooms, and are attracting walk-ins. "Tata Motor's' focus on
tier-Il cities is a correct strategy since these are natural markets for the Nano Second, it
tied up with value retailer Big Bazaar to gain traction among the 150 million footfalls
the retailer gets every year. "There is a Nano parked in every Big Bazaar outlet and the
touch and feel experience has accelerated decision-making, especially in smaller
towns," The chain has 70 outlets in smaller cities and towns. This however contributed
to increase in Nano sales for a short period of time. Further Tata Motor's Finance
(TMF) launched a special Tata Nano finance scheme, under which a customer was
able to get a loan with select documents in just 48 hours. TMF provided finance up to
90% for the Tata Nano, at easy rates. Bank loans for Nano were made cheaper
compared to the regular fare of car finance. To make the most of the Nano euphoria
and grow business in the process, Nano financiers gave discounted interest rates - -
which are tipped to figure at 50 to 150 basis points (bps) lower than regular car loan
rates. The Tata Nano gave its 4-year/60,000-km (whichever is earlier) manufacturer's
warranty, at no extra cost on new deliveries, and to all
existing owners of the car. Though management at Tata Motor's tried to correct
mistakes like promotion, distribution and financing It couldn't help Nano to grow and
if we see in volumes Tata Nano's journey is appalling. Since its commercial launch in
March 2009, the number of Nano cars sold till October 2013 within a span of four-
and-a-half-years is over 2.41 lakh (Indian Express, 2013). So lately Tata Recognized
the fact that there is a need for repositioning Tata Nano
Repositioning strategy
Positioning often has very little to do with the product, it can be changed without
necessarily changing the product. So when a positioning fails, a product may be
repositioned given a new identify. Often, products are repositioned to target a different
audience. According to Jack Trout (2010). Repositioning is how we adjust perceptions
whether the perceptions are about you or about your competition.
The road ahead for Tata Motor's continues to be challenging, yet full of opportunities
but Tata Motor's is committed to improve its customer-centricity, to better understand
customer needs and translate them into exciting and appropriate products for their
markets in order to increase the "perceived value" of its aspirational venture Nano.
After four years of it commercial launch Tata Nano, decided to create a new niche for
itself in august 2013, by managing to move away from tag like the "world's cheapest
car to "smart city car. Thus they are repositioning Tata Nano as a "smart city car" by
focusing on the youth to rejuvenate its image.
The failure of Tata Nano was because of its positioning strategy but this time Tata
Motor's has come up with the positioning strategies which are relevant in the
automobile industry. Saloni Pawan Diwan & B. S. Bodla (2011) has identified eight
positioning strategies/factors in the automobile industry which are considered
important by the customers in India.
Promotional campaign positioning strategy

Considering the young buyers Tata Nano have this time ensured that the Promotional
campaign is relevant to the target market," Tata Nano's new campaign called 'celebrate
awesomeness' is becoming popular among youngsters. The latest TVC has crossed 5
million views on YouTube till September 2013. The latest television commercial for
the Nano features young celebrities such as model Sarah Jane Dias, fashion designer
Masaba Gupta and magician Ugesh Sarkar and a racy soundtrack. The new edition
Tata Nano's colourful TV commercial on 'Celebrate Awesomeness' has crossed 5
million views on YouTube in less than 30 days the highest for any Automotive brand
TVC in India, till date. The video has been an instant hit, bringing in more than 17,000
post likes and over 700 comments from the Nano fan base. In the new TVC, the brand
has showcased the colourful world of Nano and young achievers from different genres
who share the brand's unique attitude to do things bigger, better, and differently
whether it's the gutsy Masaba Gupta whose quirky pop prints stand out from the
crowd, the beauty-pageant-winner-turned- entrepreneur-turned-actor Sarah Jane, or the
riveting street magician Ugesh Sarkar, everyone embodies the spirit of 'Awesomeness'.
All throughout, it carried the jinglecelebrating the awesomeness factor, almost making
the film like a complete music album. There are plans to feature automobile designer
Jagpreet Singh and Formula One racer Narain Karthikeyan in future ads, as well as a
series of brand marketing events around them. For potential buyers in smaller cities,
towns and villages, Tata Motor's has adopted a multi-pronged approach. In the villages
and smaller towns, the company plans to use devices such as floats to communicate
the basic values of the Nano brand such as fuel efficiency and total cost of ownership
while in metros it would continue to engage youngsters aspiring for a car that can be
customized for colour and features. Although Tata Motor's have developed proper
repositioning strategies this time that will make the product cater to a larger number of
customer segments. Changing perceptions of consumers is not so easy and it will take
time And Jack Trout, one of the world's leading international marketing strategists has
given the Tata Motor's unsolicited advice to just 'kill the brand'. So will the
repositioning transform the Tata Nano's fortunes? Is there a future for the product?
will be interesting to see in the future.

Changing Consumer Perception

Everyone can see the urgent need to focus on the brand cachet of the Tata Nano for its
very survival. But throwing advertising dollars at the product, pushing through
extensive brand makeovers using unnecessary display aids in showrooms which no
one really bothers to look at (remember, customers come to a showroom to look and
feel the car, not to look at its images on a giant TV screen), sponsoring one
more of the dime-a- dozen film awards events and expensive TV advertising that
appears better suited to impulse purchases are clearly not helping the Nano.
And all this when the car could well be losing at least 20,000 (my estimates at present
production levels please) per unit! But just how can the revival of the Nano be
engineered today? How can consumer perceptions about the Nano change now? What
the Tata Motors marketing team already has is an innovative not merely affordable
product. The pity is that all these days they appear to have managed to focus only on
the affordable part. And that is where they have to restart. But what would make
customers reassess the Nano? Simple, make it represent sustainable future mobility,
smart cities and all things uber cool. Make it a byword for green technology and
caring for the environment.
Let it be truly relevant to the concerns of a genuinely aware Generation Next. Then
watch the word spread! Consider the following possibility: a Tata Nano electric
vehicle (EV) is developed with both internal and external' resources. A national
competition, open to engineering students and any interested 'specialist' company, is
rolled out with say a 10-crore prize money to be distributed to the top ten entries. With
'sustainable Indian innovation' being the focal theme, such a competition would garner
significant buzz and immediately help restore some sheen to the Nano.
Simultaneously, internal EV development efforts should be speeded up perhaps along
with the likes of Phinergy, a company whose aluminium-air energy systems use
energy released by the reaction of aluminium with oxygen to generate electric power.
Five hundred units of the in-house developed car are then placed in association with
10 globally recognised tech universities - in the US, the UK, Europe and India.
Fleet management could be handled by bike and carsharing organizations like Bixi or
Zipcar or maybe even Newrgy (the great new idea on battery swapping for EVs) and
the maintenance supported by local JLR or Tata dealers. Connected to say a Bixi-type
scheme and the campus transport system's IT infrastructure, this student and faculty
Nano EV sharing scheme could perhaps complement the Bixi-type service.
It could allow students to book their Nano EV via an app on their smartphones, pick
up one of the Nano EVs at one Bixi-type location and drop it off at another. All
participating student and faculty users are then made part of a massive crowd sourcing
initiative that could constantly help debug and upgrade the car, and maybe, who
knows, even help create the core of a Nano version of the 'driverless' car.

The Revival Strategy

Even as the project promotes a new type of personal mobility using small vehicles that
don't take up as much road space as a normal car, particularly in congested inner city
environments, it could also perhaps help build the core of an interconnected public
transport system in the smart city of the future. The scale and complexity of an
integrated project of this magnitude would make collaborations an imperative.
The project partners Tata Motors, the universities, the student communities, the fleet
managers, the local utilities, mobile phone service providers, local JLR and Tata
dealers, and sponsors like say TCS or Tetley Tea would all obviously need to put by
resources, both financial and managerial, to get it underway. But look at the benefits!
Even as the project progresses globally, a constant barrage of tweets and YouTube
uploads emanating from the best regarded technology incubators in the world would
help the Nano regain its lost sheen as a hi-tech, innovative product.
Replicating the scheme in 50 Indian engineering college campuses will then bring
back the pride to owning a product that in many ways exemplifies Indian innovation.
Led by young buyers, India would undoubtedly then rediscover the Nano for what it is
a true example of forward thinking yet frugal Indian innovation.
Regaining Lost Sheen
That the Nano EV could go on to become a successful global product in its own right
thereafter is a natural corollary. The approach of cities like London (come 2018, and
only zero-emission vehicles will be allowed to operate in much of central London) and
much of Europe (from little towns like Grenoble to mega cities like Paris) to EVs, the
China government's EV push and the reported efforts towards sustainable mobility by
the entire global auto industry all point to an impressive growth trajectory for a Nano
EV.
But can the Nano quickly regain its wow factor for the reassurance-seeking Indian
budget car buyer? I believe it can. It would help greatly if, for starters, all Tata Motors
executives are 'encouraged to self- drive only Tata Nanos to work for the next two
years. Even as the pride in the product becomes visible to the world at large, and the
credibility of the product is restored by this "the owner of this restaurant, also eats
here" approach, the consumers' pain points will also become increasingly apparent to
those that need to fix it, all in real time, first hand, and without any filtration or
obfuscation.
Simultaneously, new product development centred around power-assisted Nano
hybrids would need to be initiated and completed on a war footing. Integration of
technology solutions available both in India and internationally could be taken up with
development, testing and introduction timelines that are defined in days - not weeks.
Ultimately range extender-based Nano series hybrids that start with a fuel efficiency
target of say 100 kmpl might be just the way to go.
 CHALLENGES AND PROBLEM OF TATA NANO

Ratan Tata and his companies need no introduction. Despite being a successful brand
across different sectors, its potentially revolutionary product, Tata Nano, was a failure.
This blog will discuss the Tata Nano story and understand the reasons for Tata Nano’s
failure as a brand. We’ll also shed light on Tata Nano’s marketing strategy and why it
backfired and led to shutting down the production within a decade.
Tata Motors is the automotive entity of the brand and made a splash back in 2008 with
the revolutionary Tata Nano. The vision was to make cars available to the lower-
middle-class masses. The brand realized that there was a huge gap in the automobile
industry, and Tata Nano was born as a result. The car came with the vision of bringing
comfortable and safe mobility to the masses and was introduced as “The People’s Car”
at the 2008 Auto Expo in India.
Tata Nano was presented as a 1 Lakh rupee car—small but spacious with a capacity of
4 and no power steering, no airbags, and no A/C in the base model. It stood firmly
with quality, mileage, and environmental standards for the price
Tata Motors aimed to produce 2,50,000 Nano cars annually whereas the opening sales
were 30,000 (approx.) only. The highest ever sales of 74,527 were achieved in 2011-
12, which went down to 7,591 in 2016-17. The plant assembled only 1 Nano in June
2018 and closed production.
1. Invalid market analysis
It seems like the company had assumed what their market desired. They were so
ambitious about the product launch that they forgot to empathize with their target
market before positioning their product. Their emotional attachment to the product
didn’t let them skeptically analyze their strategy. Tata possibly thought that the car
was a necessity, but it was actually a luxury. If they had given it more thought, they’d
have realized that their customer did not want “the cheapest car.” They were more
comfortable living as they were than going for a cheap car. Thus, a comfortable, fully-
functional car that came with a tag of “cheap” was not appreciated by the market.
2. The Lakhtakiya positioning
Tata Nano was often called “Lakhtakiya,” translated as “worth a lakh.” Tata Motors
used the penetration pricing strategy. The company marketed it as the cheapest car in
the world to make it accessible to the masses irrespective of their socio-economic
background. The media hyped the positioning and it backfired, A noble idea went
kaput because it could not sell entitlement. People did not want to own an item known
for its cheap cost. Also, with the tag of cheap, quality stereotypes are bound to arise.
People assumed that cost-effectiveness comes with quality compromises, and hence
Tata Nano could not find its footing.
3. Logic over emotion
Tata Nano’s marketing strategy was unable to touch the hearts of Indians. Buying
decisions are mostly emotional rather than rational. The marketing campaigns lacked
that emotional touch and focussed more on the features, Vouching on features in the
marketing was also necessary, as the company wanted to tell people that they are
providing almost everything that cars usually have. But, somewhere, they could not
bridge the emotional connection, and thus lost their grip on the market.
4. The hype
The Tata Nano launch was hugely hyped in 2008. And as people were waiting for the
launch, Tata announced the shift of the brand’s production plant from Singur, West
Bengal to Sanand, Gujarat on October 7, 2008. The West Bengal government, led by
Mamta Banerjee accused Tata Motors of land acquisition and initiated the “Save
Farmland” movement with local farmers and environmental activists. Tata Motors had
to leave the state and was welcomed by Gujarat to set up their plant at Sanand. But the
delay dulled public enthusiasm. The hype was a problem as it mainly revolved around
the price of the Tata Nano and not around the value proposition.
5. Negative PR
The leftover image was destroyed by the negative PR it had attracted. Many times, the
initial models of Tata Nano caught fire and burst into flames on the road. Some said it
was because of the faulty wiring. Others said a foreign object had entered the exhaust
system. Also, its lightweight affected the stability of the car on highways. The engine
was not powerful and no A/C was installed in the base model. All these things
contributed to a poor-quality ride.The on-road price of Tata Nano was 2.59 lakh
rupees instead of 1 lakh, as promised. Its close competitor, Maruti 800 was priced at
2.88 lakh rupees. Lastly, Tata Nano received a Zero-star adult protection rating in a
crash test. It failed to meet the basic UN safety requirements, and thus the very
purpose—the safety of the car was crushed. All these incidents decided the fate of the
car and soon enough the car faded away from the market.
After Tata acquired the JLR, Tata cars not being successful is history. Tata Nano
debut in the 2008 auto expo and created a huge hype, ‘People’s Car’. Tata tried the
stunt, that no other ever wondered, of providing a car at really affordable rates. But in
the end, expectations are deceiving. Tata Nano didn’t do as Tata anticipated. The low
cost might be the problem that Tata wanted to solve. Keeping that aside, Tata Nano
did transport people at a low cost and with some problems. So, here are 10 common
problems reported by owners.
1.Horn Stopped Working
The most common problem among them all is the Horn. Before getting into the
problem, the Nano’s horn was meek and didn’t offer the punch. Not even the animals
on road could hear it. The icing on the cake was a nano driving without a horn which
is so common on Indian roads. Many of the owners have reported, after some time, the
horn just stops working. The sad part is that a replacement is the only option.

2.Starter Motor Problem

One of the major components of a vehicle is a starter motor. What if it dies in the
middle of nowhere? Yes, Tata Nano was famous for doing so. Some pissed Nano
owners reported problems of the starter motor not working. This results in the vehicle
failing to start the engine (obviously). The only other option was to push the car on a
street and if you stall it again? You’re doomed.
3.A/C not Effective
Whether the AC is effective or not all depends on how you maintain the car. Well,
what if we say even after a proper periodic maintenance some Tata Nanos A/C do not
deliver ample cooling. More on the A/C is that people often complain about the plastic
toggle switch braking and oh God! that switch brakes really often. Not just that, even
the blower on the inside, does not run at its optimum potential.
4.Power Windows failure
I know the car is cheap and it offers a lot at low prices, but still what’s the point if the
vehicle’s second home is the car mechanic’s workshop? Well, Tata Nano is known for
power window often failing. Firstly only the front doors come with power windows
but they too go kaput at times. Assuming the electricals are not of good quality that
they fail.
5.Speedo Meter not Working
Thankfully Tata Nano comes with a speedo in the centre on the dashboard and is
mechanically opperated. That said, it failing is no surprise. The amount of vibration
the car has on offer might be the reason for it not working past some time. Though it is
easy and cheap fix.
6.Premature Clutch Wear
Everyone knows that Tata Nano was a rear-engine, rear-wheel drive. So, This means
that the power is sent to the rear wheels. With that clear, Tata Nano had a common
problem of premature clutch wear. What does that mean? well, compared to other cars
Nano used to loose its clutch fairly early. So, the things to keep in mind is that,
different driving habits also lead to even reduced clutch life.

7.Dashboard Rattling
At the price you bought a nano, you got just a barebone dash with exposed wiring and
bolts. Even then the dash rattles after use of a year or two. This is not a problem to
worry about but it surely irritated the occupants on the inside.
8.Lack Of Power
What more can you expect from a 600cc engine? The small rear-mounted engine did
the job just right unless the A/C was turned on. After then the car struggles even for
reaching 100kmph.
9.Less Responsive Power-Steering
Sometime after Tata Nano’s launch, the carmaker decided to give this small hatch
some add on features. This also included power steering. But with its use, the steering
got less responsive and lacked feedback. At times the presence of power steering was
not even felt.

10.Poor Ride Quality

This budget hatch had some major problems with the suspensions. Firstly the car on
the initial stage offered a fairly soft suspension making it difficult to sit in the car.
Nano usually tossed people here and there when cornering (at low speeds). The time
too had a huge toll on the suspension as it starts to squeak.

Tata Nano SWOT Analysis

 Tata Nano is one of the leading brands in the automobiles sector. Tata Nano SWOT
analysis evaluates the brand by its strengths & weaknesses which are the internal
factors along with opportunities & threats which are the external factors. Let us start
the SWOT Analysis of Tata Nano:

 Strengths
 Weaknesses
 Opportunities
 Threats

Tata Nano Strengths

1. Tata Nano is available at a very affordable price.

2. Easy to drive in traffic conditions.
3. Innovative engineering of Tata Nano provides better facilities compared to same
segment cars.
4. Low maintenance and handling cost of Tata Nano.
5. Good fuel efficiency goes well with Indian audiences.
6. When it was introduced it created a huge buzz in the global automobile industry being
a ‘common mans’ car.
7. Excellent advertising of the Tata Nano car across TVCs, print media, online ads etc.

Tata Nano Weaknesses

1. Perceived as a cheap product which repels the aspirational customers.

2. Setting up of production plant in WB caused a lot of tension.
3. Limiter international presence of Tata Nano.
 Tata Nano Opportunities

1. Tata Nano can capitalize on the fact that it is the most affordable car and acquire new
customers.
2. Increasing per capita income and purchasing capability of potential customer base.
3. Promoting CNG model at the earliest and attract the public passenger car segment.
4. Increase international market presence especially Europe too boost Tata Nano's
business.
5. Augmenting the distribution and service network in various countries.

Tata Nano Threats

1. Increasing fuel costs.

2. Competition from other big automobile giants can affect Tata Nano's business.
3. Competitive products offering same level features at a lesser price.
4. Product innovations and frugal engineering by competitors.
5. Customer perception of a Tata Nano as a cheap car can lead to loss of sales.

About Tata Nano

The table below gives the brand overview along with its target market, segmentation,
positioning & USP
Tata Nano Overview
Parent Company Tata Motors
Category Hatchback
Sector Automobiles
Tagline/ Slogan Khushiyon ki Chabi
Tata Nano is the most affordable car in the Indian automobile
USP
market
Tata Nano STP
Segmentation Hatchback segment for middle class
Target Market Targeted towards the families belonging to middle class segment
Positioning Tata Nano is positioned as the cheapest and most affordable car
 Tata Nano PESTEL Analysis

PESTEL Analysis:

It is a framework used to analyse the external factors that directly or indirectly affects
the working of an organisation.

1. Political Factors: Government had played a very important role by providing a

conducive environment to support automobile manufacturing in the country. In the
export of the cars and vehicles produced by the company the most important factor
that laid a direct impact is the region like free trade agreements with India. The more
flexible the trade agreements are, the more success and sale the company will get. To
support the trade amongst nations the government has also come up with things like
Eco free environment which has also helped in the success of the company.

 The goods and service tax is a great opportunity for automobile companies.
 The Indian demonetization policy has largely affected cash intensive industries like
automobile manufacturers.
 The Brexit has resulted into both political and economic uncertainties.
 The high barriers of trade are both a threat and an opportunity for the industry.
 2.Economic Factors: The rise in the Disposable income has also led to an increase
in the discretionary expenditure of the people. The rapid growth of India's economy
has always been an opportunity for the company like Tata Motors. The better the
business growth of a state will be, the more opportunities for the company will be
there. By and large, the GDP of the state is a significant factor assisting in the
success of the organization like Tata Motors. Therefore, the growth of the state
economy is always a thing of great concern for the Tata Motors Company.

 The changing lifestyle of millennials whereby they have shifted from car
ownership to access and buying cars has become unnecessary.

3.Socio-Cultural Factors: Rise in the demand of Cars by people (Corporate class) has
played an important role in the Growth of Automobile sector. For Ex: The states
where people are more fond of Hybrid Cars and Electric Cars will create an
opportunity for the companies like Tata Motors. The difference between the wealth of
different class of society and the change in demand and taste of people can be the
major challenge. This gap often widens the economic disparities between the social
classes and become a threat to the business and affect the trade as a whole.

4.Technological Factor: The boom in technology and the rising trend of E-commerce
has always been an opportunity for the automobile companies like Tata Motors
company. Development in technology provides great opportunities for the company to
expand its business and to operate its business in a smart and productive way.

5. Environmental Factors: The decline in the reserves of the oil is also an

opportunity for Tata Motors as it assists in bringing the new technology and the
innovation in the realm of motors. The certain environmental friendly stance by the
global companies is one the fundamental concern for the company.