MANAGEMENT

Tata Nano



EXECUTIVE SUMMARY

Tata is aimed to revolutionize the automotive industry locally and internationally with the launch of a simple utility with a low price with market penetration pricing strategy. Tata Nano is considered as a city car manufactured by Tata Motors. It is known as the world's cheapest car produced in India with an introductory price promotion of 100,000 (US$1800). In recent year, it has been observed that the global customers are moving towards mobility, therefore, low emission cars are becoming more frequent and Chinese cars would reverse the market with its low prices. In this consideration, Tata Motors came up with an idea of producing a four wheel car for the purpose of providing transport for Indians at an affordable price. The company should adopt standardization to market similar models of cars in the global market. This way, the company can achieve its market share by approaching mass market strategy to attract large number of global customers. The chosen country is Brazil because of its stable economy and political conditions, the company can contribute to the GDP of a country. The mode of entry strategy is exporting the cars in Brazilian automobile industry by keeping low cost of production and low price strategy to attract foreign markets. Brazilian market is captured by Chinese and Japanese cars with its high demand as consumers are highly family oriented and more socialize. Considering its demand and economic stability of the country, Tata Nano is offered through exporting process and the firm should adopt standardization strategy. Like Indians, Brazilians are striving to buy high quality products at an affordable rate.

Tata Nano

Introduction

Tata Nano is considered as a city car manufactured by Tata Motors. It is known as the world's cheapest car produced in India with an introductory price promotion of 100,000 (US$1800). The price has increased with the entrance of other new models but still it is called as lowest four wheel vehicle among Indians. By 2013 the company has reported a small restyling that will make something more visually appealing (Kurczewski, 2009, pp. 19). Also the offer is completed with a more powerful mechanical option and frugal, with 0.8 liters and an output which should be around 50 hp. The previous 0.6 of 38 hp will still offered in the range of access and to reduce the cost of use, also propose an adaptation to use methane.

With these changes and the arrival of more equipment such as stereo, electric pack and finally power steering, the Nano should be more attractive but also fair to say that the price will move away from the initial project promoted. Initially, Tata plans to sell it in Europe, but eventually backed down. In India, the main market for which it was originally intended is far from the success they envisioned. Still, Ratan Tata, the group's CEO Tata, not giving up and plans a new version of the Nano for America.

Tata Nano is one of the greatest bluffs in recent ...