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LITERATURE REVIEW
This article is the report of Tata Motors specifying the impact
of Tata Nano car on
automobile industry. Ratan Naval Tata has stunned the world and
the automobile
industry by unveiling his life long dream of making a 1 lakh car
which can very
easily commute an average Indian family. The dream has not only
taken away the
sleep of the common people but also the manufacturers of two
wheelers and the
fact was but obvious that if such happens than people would
prefer to go for a four
wheeler than a two wheeler. The name than thought was Nano and
we have Nano
running these days in our surroundings.Speculations were made
that Nano will
change the scenario of Indian car market. It was expected that
it will expand
nations car market by 65% and will have a huge effect on used
car market. It was
first showcased at Delhi Auto Expo 2008. We remember that it
received a huge
attention from media and people. Soon after its launch, it was
clear that it has not
been able to grab the market as much as it was expected. It got
mixed response
from people.
In the first year, sales of NANO are two high and many
low-income customers
purchased NANO car in the place of two wheelers. In simple words
NANO
replaced Maruti 800 and became major competitor for many other
car companies
in the automobile market. The best example is that many
companies are offering
NANO car as incentives and benefits to their employees. The low
price of NANO
attracted many customers and allowed them to buy a car and
fulfill their dream.
The maintenance of NANO car is even less according to low budget
of customers.
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According to this article no other car company in the world is
offering a car with
one lakh rupees which can be considered as the major competitive
benefit to Tata
Motors. Even though there are many other cars in the markets
with good features,
most of the people prefer NANO as the car because of its low
price. Even though
there are some negative remarks on reviews of NANO car, Tata
Motors considered
them as suggestions and established Tata Nano 2012 Car with
previous customer
feedback.
According to the report of Wharton.com (2009) Nano has entered
the Indian roads
as a small wonder and it is considered as the words number one
cheapest car. Thisarticle revealed the information on Tata Nano Car
introduction by specifying its
features etc. The information on Tata Motors agreements with
financial companies
is explained. This article explained the price of Nano Car in US
$ as 2,400 to
US$3,600 based on the model selected which is exactly one lakh
Indian rupees.
Tata Motors is even offering loan and finance facility to the
customers that show
the actual intention of Tata Motors to fulfill the car needs of
low income
customers. Tata Motors is having many competitors in the market
and to get
competitive advantages chairperson of Tata tried to reach normal
customers and
established a plan to introduce Nano as the cheapest car in the
World. The
technology used in Nano car is illustrated within this
article.
The future work is required in order to explain the customer
feedback of Nano car
to suggest those reviews to Tata Motors. The information on Tata
Motors and Tata
Nano is considered and analyzed from this article to fulfill
research requirements
and to give a clear idea on Tata Nano current status in Indian
automobile market.
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This article was an introduction to Tata NANO car and its
features with detailed
information on making of NANO. According to this article, buying
a car is the
major dream for many people in India, especially for middle
income and rural
people.
Even though two wheelers are widely used in India, people are
still looking to buy
car according to their budget. Ratan Tata owner of Tata Motors
specified his views
on NANO that it is the only car that has fulfilled the dream of
individuals to buy a
car with general income. Tata NANO price is one lakh Indian
rupees which is
equal to that of two wheeler price.
The establishment of NANO can be considered as the competitive
strategy of Tata
Motors in order to attract customers of all ends. The detailed
information on facts
and figures of Tata NANO is explained in detail and according to
TATA report
NANO is the peoples car.
Ratan Naval Tata has stunned the world and the automotive
industry byunveiling his life long dream of making a 1 lakh car
which can very easilycommute an average Indian family. The dream
has not only taken away thesleep of the common people but also the
manufacturers of two wheelers andthe fact was but obvious that if
such happens than people would prefer to gofor a four wheeler than
a two wheeler. The name than thought was Nanoand we have Nano
running these days in our surroundings. It is very clearfrom the
article1 in which peoples choice and impact of Nano is been
talked
about as in.
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From Article 1:-
Nano is expected to have an immediate impact on the two-wheeler
market. All
the two-wheeler aspirants are now willing to upgrade their
choice to cars. They are
now willing to buy a car that thats affordable delivers a safe
journey to their
families.
A car anytime offers more safety than a motorbike or scooter.
This may drive the
interest of young drivers who commute long distances to work
towards the Nano
as it proves to be a safer and better alternative for a
two-wheeler. However, the
insurance may be comparatively high but a little higher amount
for improved
safety is something that all car buyers will love to pay.
Nano, is perfectly designed for a small family of four with
ample of leg room and
headroom with around 21% more spacious interiors compared to an
average small
car.
On the other hand major two wheeler manufacturers tried to cool
down theissue by saying that Nano is not going to hit the two
wheeler market and itwill be making its own people and market
segment and the sales result ofmarch 2009 and June 2009 somewhat
has proved their statements correct toa certain limit.. The same is
very clear from article 2 of the research.
From Article 2:-
Major two wheeler manufacturers are unanimous that the Tatas'
Nano will have noimpact on their business.
Nothing much has changed since the unveiling of Nano at the Auto
Expo exceptfor the announcement of prices. I still maintain it is
not going to have any realimpact on two-wheelers," Hero Honda
Motors Managing Director and Chief
http://www.carazoo.com/article/1401200901/Popular-Small-Cars-of-2008http://www.carazoo.com/article/1401200901/Popular-Small-Cars-of-2008http://www.carazoo.com/article/1401200901/Popular-Small-Cars-of-2008http://www.carazoo.com/article/1401200901/Popular-Small-Cars-of-2008http://www.carazoo.com/article/1401200901/Popular-Small-Cars-of-2008
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Executive Officer Pawan Munjal told reporters on Thursday on the
sidelines of theCII Annual Session.
He said going by the price there is a fair difference between
the cost of ownershipand maintenance of the Nano and
two-wheelers.
TVS Motor Company Chairman Venu Srinivasan said, "There will be
no majorimpact on two-wheelers. It (Nano) will create its own
segment."
In a similar vein, Bajaj Auto Chairman and Managing
DirectorRahul Bajaj said, "Idon't see a Pulsar buyer going to Nano.
He wants a Bajaj Pulsar, not a Tata Nano."
Again, after saying that Nano is not going to hit the two
wheeler market, thesame companies has asked for the reduction in
excise duty from 12% to 8%in a post budget meeting with finance
minister which reveals that the fear of
Nano certainly prevails in the mind of two wheeler manufacturers
which hasmade them to do this and this is very clear from article
3..
From Article 3:-
New Delhi, Mar 3: The Nano fear seems to have begun to creep
into the minds oftwo-wheeler manufacturers. In a post-Budget
meeting with the finance minister onMonday, the biggies of
two-wheeler industry, Hero Honda and Bajaj Auto,requested for a
further reduction in excise duty on two-wheelers from 12%
asannounced in the Budget to 8%, for a level-playing field with
small-car
manufacturers.
The industry fears that Tata's Nano, earlier priced at Rs 1
lakh, would now beavailable at a lower price and hence impact the
sales of two-wheelers. "Two-wheelers are used by real aam admi
(common man)," Pawan Munjal, managingdirector, Hero Honda said
while making a case for lower excise duty on two-wheelers.
"The excise duty on two-wheelers and three-wheelers should be
brought down to8%," Rahul Bajaj, chairman of Bajaj Auto added.
According to an industry expert, "Tata Nano, slated for a launch
in October, wouldnow fall under the 12% excise duty announced for
small cars and this mightresult in dropping of prices of Nano. This
would be in line with a similar reductionannounced by various car
manufacturers immediately after the Budget and wouldmake the
executive and premium bikes even less-price competitive vis-a
vis
Nano". Assuring the industry that he would keep a close watch on
developments in
http://connect.in.com/rahul-bajaj/profile-435.htmlhttp://connect.in.com/rahul-bajaj/profile-435.html
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the auto sector, finance minister, P Chidambaram said he had
kept the duties at thesame level for auto and small cars "as they
enjoyed the same duty in the last two-three years". "Reduction in
duty would help gain some volume but the
phenomenon will be short-lived unless the issue of retail
financing as well as highinterest rates is considered," adds Atul
Gupta, vice president (sales and marketing),Suzuki Motorcycle India
Pvt Ltd.
The contradiction in statements between the different segments
in automotiveindustry is the basis of our research. At one hand it
is been said that Nano will eatup the two wheeler market and most
of the people would now go with the
Nano(four wheeler) than two wheeler for convenience and safety
purposes whileon the other hand the marketiers say that Nano will
make its own market segment
and will not affect the two wheeler market.Hence the
contradiction between these statements is the topic of research and
thusour Research is on Impact of economical cars (Nano) over the
two wheelermarket in India.
According to the report of Srmuniv.in (2010), Nano is the
cheapest car in theWorld manufactured by Tata Motors India, which
is one of the biggest automobilecompanies in India. This article
explained the information on the situation analysisof Tata Nano car
that reveals the current situation of Nano in automobile market.The
market summary of Nano is explained that gives a clear idea on
target market
and positioning of Nano car in the automobile market of
India.
The competitor review and distribution review along with SWOT
analysisstrengths, weaknesses, opportunities and threats of Nano
are illustrated. Thedifferent types of marketing mix strategies of
Tata Nano are considered productstrategy, product review, comforts,
fuel efficiencies, safety requirements, brandingand pricing
strategies of Nano are described in this article. The different
promotional strategies to be followed by Nano in order to get
good competitiveadvantages are elucidated.
Finally, the detailed information on marketing campaign of Nano
is explained but afuture work should be carried out to this article
in order to explain the Indianmarket of Nano.
Tata Nano car is the example company taken into account in the
research processin order to explain the current status of Tata Nano
Company in Indian automobileindustry
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Hence the contradiction between these statements is the topic of
research and thus
our Research is on Impact of economical cars (Nano) over the two
wheeler
market in India.
Problem:-Impact of Economical Cars(Nano) on the two wheeler
Market
Literature Search:-
1. Effect of Nano on the Sales of Major two wheelers in the
market since itslaunch?
2. Effect of Nano on the preference of various income
groups?
3. Effect of Nano on the inclination of People from two wheeler
to fourwheeler?
4. Effect of Nano on the preferences of various age groups?
These are some of the topics and areas on which the research is
been
concentrated and for this we have used varied research
parameters and tools.
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Type of Research:-
Exploratory:- Exploratory research is a type of research
conducted to provide
insight into and comprehension of an issue. Exploratory research
helps determine
the best research design, data collection and selection of
subjects. The research in
the form of focused group discussion has been done to know the
views of people
on the topic in deep. The age group of 18-35 is been selected
for this research since
they seem to be the potential customer of the economical cars
and the two
wheelers.
Descriptive:- It is a statistical research ,describes data and
characteristics about
the population. It answers the questions who, what, where, when
and how. The
questionnaires are been used for this research and they are been
answered by
people of various age groups. It is the best form for
statistical calculations.
The report submitted by PCTI (2011) includes significant
information on overview
of Tata NANO car along with its features, benefits etc. This
article includes the
significant information on conception and design of NANO car,
expectations of
customers on NANO introduction, modular design, pricing strategy
and release
date etc. On the other hand, this article even explained the
impact on NANO car on
Indian economy along with opinions of different analysts on Tata
NANO car. This
article includes a table that contains detailed information on
entire features of Tata
NANO car and their specifications. This article even explained
the information on
reviews of different communities of people who has used Nano
cars previously.
The actual failures and problems of Tata NANO car are explained
clearly. Finally
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this article includes the information on major competitors of
NANO car such as
Bajaj Auto and some other electric cars.
The future work is required in order to explain more reviews on
NANO car in
order to identify whether NANO is a useful car or not.
Recently Ratan Tata himself admitted that Nano failed at its
first attempt. It has a
direct competition with Indias largest selling car Maruti Suzuki
Alto. Sales record
show that the market share of Nano in comparison to Alto is
negligible. In fact
people prefer buying used Alto or Wagon R over new Nano.
Now Tata is trying to improve Nanos image as they are ready with
their all new
Nano 2012. They have made few changes to make sure that it
becomes the
favourite car of Indians. Tata is relying too much on Nano 2012
and if it doesnt
succeed this time we are afraid if it will be given another
chance. Nano is 8 percent
smaller in exterior size and has 23 percent larger interior
space in comparison to
Maruti 800. It is available in attractive shades and the top
model LX comes fully
loaded with air-conditioner, front power windows, fog lights,
central locking,
tinted glass, body colored bumpers and digital trip-meter.
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Update: Tata Launches Special Edition Nano
Tata Motors has launched special edition variants of Nano which
are available in
all shades in CX and LX trims. It features special edition
stickers, body graphics,
designer alloy wheels, twin-glove box (very functional) and
audio system with
USB and AUX support. All the accessories are worth INR 25000 and
the company
is offering all this absolutely free!!
Whats new in Tata Nano 2012?
New design for seats and headrests New design for the wheel caps
Silver finish on central console All-beige interior theme for LX
model Four new attractive shades Improved NVH levels Rear-view
mirrors on both sides More powerful with 37 bhp of power and 51 nm
of torque Warranty of 4 years or 60,000 kms
The Nano fear seems to have begun to creep into the minds of
two-wheelermanufacturers. In a post-Budget meeting with the finance
minister on Monday, the
biggies of two-wheeler industry, Hero Honda and Bajaj Auto,
requested for afurther reduction in excise duty on two-wheelers
from 12% as announced in theBudget to 8%, for a level-playing field
with small-car manufacturers.
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The industry fears that Tata's Nano, earlier priced at Rs 1
lakh, would now beavailable at a lower price and hence impact the
sales of two-wheelers. "Two-wheelers are used by real aam admi
(common man)," Pawan Munjal, managingdirector, Hero Honda said
while making a case for lower excise duty on two-wheelers.
"The excise duty on two-wheelers and three-wheelers should be
brought down to8%," Rahul Bajaj, chairman of Bajaj Auto added.
According to an industry expert, "Tata Nano, slated for a launch
in October, wouldnow fall under the
12% excise duty announced for small cars and this might result
in dropping ofprices of Nano. This would be in line with a similar
reduction announced by
various car manufacturers immediately after the Budget and would
make theexecutive and premium bikes even less-price competitive
vis-a vis Nano".Assuring the industry that he would keep a close
watch on developments in theauto sector, finance minister, P
Chidambaram said he had kept the duties at thesame level for auto
and small cars "as they enjoyed the same duty in the last two-three
years". "Reduction in duty would help gain some volume but the
phenomenon will be short-lived unless the issue of retail
financing as well as highinterest rates is considered," adds Atul
Gupta, vice president (sales and marketing),Suzuki Motorcycle India
Pvt Ltd.
The two-wheeler industry, especially motorcycles have been
losing steam eversince December 2006, which was followed
by a series of interest rate hike. According the Society of
Indian AutomobileManufacturers, the cumulative sales of motorcycles
during April-December wasdown by 12.43% to 48,36,908 units as
compared to 55,23,661 units sold during thesame period last year.
This is contrary to a double-digit positive growth of 16.37%for
compact cars at 7,04,172 units during this period.
In its pre-Budget memorandum, the two-wheeler industry had asked
the
government to bring down the excise duty on two-wheelers from
16% to 8%.However, now that the duty has been reduced to some
extent, it still continues to
be the same as that on small cars, the industry wants the
government to reconsidertheir demand of reducing the excise duty to
half before the Budget proposals go toParliament for approval.
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According to the report of Wharton.com (2009) Nano has entered
the Indian roads
as a small wonder and it is considered as the words number one
cheapest car. This
article revealed the information on Tata Nano Car introduction
by specifying its
features etc. The information on Tata Motors agreements with
financial companies
is explained. This article explained the price of Nano Car in US
$ as 2,400 to
US$3,600 based on the model selected which is exactly one lakh
Indian rupees.
Tata Motors is even offering loan and finance facility to the
customers that show
the actual intention of Tata Motors to fulfill the car needs of
low income
customers. Tata Motors is having many competitors in the market
and to get
competitive advantages chairperson of Tata tried to reach normal
customers and
established a plan to introduce Nano as the cheapest car in the
World. The
technology used in Nano car is illustrated within this
article.
The information on Tata Motors and Tata Nano is considered and
analyzed from
this article to fulfill research requirements and to give a
clear idea on Tata Nano
current status in Indian automobile market.
The Nano fear seems to have begun to creep into the minds of
two-wheeler
manufacturers. In a post-Budget meeting with the finance
minister, the biggies
of two-wheeler industry, Hero Honda and Bajaj Auto, requested
for a further
reduction in excise duty on two-wheelers from 12% as announced
in the Budget to
8%, for a level-playing field with small-car manufacturers.
The industry fears that Tata's Nano, earlier priced at Rs 1
lakh, would now be
available at a lower price and hence impact the sales of
two-wheelers. "Two-
wheelers are used by real aam admi (common man)," Pawan Munjal,
managing
director, Hero Honda said while making a case for lower excise
duty on two-
wheelers.
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"The excise duty on two-wheelers and three-wheelers should be
brought down to
8%," Rahul Bajaj, chairman of Bajaj Auto added. According to an
industry expert,
"Tata Nano, slated for a launch in October, would now fall under
the 12% excise
duty announced for small cars and this might result in dropping
of prices of Nano.
The Tata Nano is a city car manufactured by Tata Motors. Made
and sold in India,
the Nano is the cheapest car in the world today. Before it went
on sale, a price of
1 lakh (US$1,800) was widely touted. Since its 2009 debut, the
price has
increased; while the Nano remains the lowest-cost four-wheeled
passenger vehicle
in India, it is significantly more expensive than a motorcycle,
a popular means of
cheap transport in the country.
The launch of the worlds cheapest car Nano is touted as the
evolution of
automobiles. The car has come a long way overcoming hurdles and
controversies
from the time it was showcased at the Auto Expo 2008 to the
formal launch on
March23,2009.
The launch of Nano is a triumph of Indias ingenuity. The
production of Nano was
a culmination of intelligent brains, innovative designs,
improved infrastructure,
excellent resources, and foremost the dream of Ratan Tata. Now
when the car has
finally launched it is taking a toll over the entire auto
industry.
Nano-mania is spreading like a virus that is progressively
trapping car enthusiasts
and car buyers from across the country. It marks a new century
of peoples car
because it has been a great success to live up to peoples
aspirations.
http://videos.maxabout.com/video/tv-commercial-of-2012-tata-nano
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http://videos.maxabout.com/video/tata-nano
