TATA NANOTATA NANO

TATA NANOTATA NANO Tata Group chairman Ratan Tata on Thursday unveiled the Tata Group chairman Ratan Tata on Thursday unveiled the

Tata Nano at the 9Tata Nano at the 9thth Auto Expo in New Delhi on 10 Auto Expo in New Delhi on 10thth Jan 2008 Jan 2008 will be launched before Tata Motors next AGM (Annual will be launched before Tata Motors next AGM (Annual

General Meeting) i.e in the 2nd half of 2008.General Meeting) i.e in the 2nd half of 2008. Small - Small - will seat four to five peoplewill seat four to five people and cheapest and cheapest

can in the world can in the world scooter partsscooter parts Nano means small in the mother tongue of Ratan Tata.Nano means small in the mother tongue of Ratan Tata. Smallest and cheapest car in the world cost Rs 1,00,000Smallest and cheapest car in the world cost Rs 1,00,000 Called as people’s carCalled as people’s car

FEATURES OF TATA NANOFEATURES OF TATA NANO PRICE- Rs 1 lakh, plus value-added tax (VAT) plus PRICE- Rs 1 lakh, plus value-added tax (VAT) plus

transport charges.transport charges. POLLUTION- lower than 2-wheelers.POLLUTION- lower than 2-wheelers. SAFETY - the 623 cc, 33 HP petrol engine meets Bharat SAFETY - the 623 cc, 33 HP petrol engine meets Bharat

Stage-III emission norms and can also meet the Euro 4 Stage-III emission norms and can also meet the Euro 4 norms.norms.

ENGINE- 623-cc petrol engine generating 33 bhp of ENGINE- 623-cc petrol engine generating 33 bhp of power, a 30-litre fuel tank and 4-speed manual power, a 30-litre fuel tank and 4-speed manual gearshift , no power steering, front disk and rear drum gearshift , no power steering, front disk and rear drum brakes. The company claims mileage of 23 km per litre.brakes. The company claims mileage of 23 km per litre.

The Nano will come in three variants -- standard and two The Nano will come in three variants -- standard and two deluxe models with AC.deluxe models with AC.

FACILITY- air conditioning, The car's dashboard features FACILITY- air conditioning, The car's dashboard features just a speedometer, fuel gauge, and oil light, does not just a speedometer, fuel gauge, and oil light, does not have reclining seats or radio. The shock absorbers are have reclining seats or radio. The shock absorbers are basic. basic.

HOW IT WAS MADE FOR ONLY HOW IT WAS MADE FOR ONLY ONE LAKHONE LAKH

Make things small and lighterMake things small and lighterAluminum engine instead of cast ironAluminum engine instead of cast ironRear engine – no requirement for link Rear engine – no requirement for link

b/w engine and rear wheelb/w engine and rear wheelTabular design instead of conventional Tabular design instead of conventional

rod designrod designRegular bulbs instead of long life bulbsRegular bulbs instead of long life bulbsPlan to assemble the car at dealers’ Plan to assemble the car at dealers’

workshop – cut workshop – cut logisticslogistics spends. spends.

EMERGING RIVALSEMERGING RIVALS

Maruti-Suzuki will completely reskin Maruti 800 (similar to what the company recently did with Zen-Maruti-Suzuki will completely reskin Maruti 800 (similar to what the company recently did with Zen-Estilo) next year. The company will rebrand it and even power it with a 600cc engine against the Estilo) next year. The company will rebrand it and even power it with a 600cc engine against the current 800cc.current 800cc.

The Munjal family behind Hero Honda, India's largest two wheeler maker, which is mulling a foray into The Munjal family behind Hero Honda, India's largest two wheeler maker, which is mulling a foray into the four-wheeler segment .is said to be in talks with BRP (Bombardier Recreational Products) for the four-wheeler segment .is said to be in talks with BRP (Bombardier Recreational Products) for developing a 500cc small car to rival Tata’s one lakh car. Hero Group was reported to have been developing a 500cc small car to rival Tata’s one lakh car. Hero Group was reported to have been closely monitoring the Rs one lakh project by Tata Motors and learn from it to de-risk its own closely monitoring the Rs one lakh project by Tata Motors and learn from it to de-risk its own Endeavour.Endeavour.

Renault Nissan is the first one to come up with a idea to rival Tata’s car it plans to produce a car priced Renault Nissan is the first one to come up with a idea to rival Tata’s car it plans to produce a car priced at below $3,000 (Rs 1.30 lakh) in India. As Renault’s local partner Mahindra is not interested in making at below $3,000 (Rs 1.30 lakh) in India. As Renault’s local partner Mahindra is not interested in making such a low cost car, Renault- Nissan may settle with india’s robust two wheeler manufacturer. such a low cost car, Renault- Nissan may settle with india’s robust two wheeler manufacturer.

Incidentally Bajaj is also planning to foray into four wheeler through a smart car. More are chances for Incidentally Bajaj is also planning to foray into four wheeler through a smart car. More are chances for a new JV between Bajaj and Renault – Nissan to rival Tata’s one lakh car.a new JV between Bajaj and Renault – Nissan to rival Tata’s one lakh car.

carmaker Honda Siel said it will enter into small-car segment with the launch of 'Jazz' in 2009. said in carmaker Honda Siel said it will enter into small-car segment with the launch of 'Jazz' in 2009. said in auto expo said honda siel india ltd. President.auto expo said honda siel india ltd. President.

India’s lone electric vehicle maker is believed to be developing a small car based on its Reva platform India’s lone electric vehicle maker is believed to be developing a small car based on its Reva platform for the redhot Rs 1-lakh car market. Reva’s one lakh car would be a four-seater , four-door model and for the redhot Rs 1-lakh car market. Reva’s one lakh car would be a four-seater , four-door model and will be powered by heavy batteries than its existing line-up and the new car can reach a top speed of will be powered by heavy batteries than its existing line-up and the new car can reach a top speed of 100-120kph (80kph for the current Reva products) . Reva’s low cost car is expected by 2010. The 100-120kph (80kph for the current Reva products) . Reva’s low cost car is expected by 2010. The current Reva range comes in three variants priced in the range of Rs 3.3-4 .3 lakh in India.current Reva range comes in three variants priced in the range of Rs 3.3-4 .3 lakh in India.

Chinese manufacturers like chery which are scouting to enter the indian market may use this Chinese manufacturers like chery which are scouting to enter the indian market may use this opportunity for their debut since they already products in this price range. These subcompact car opportunity for their debut since they already products in this price range. These subcompact car segment may also attract new indian players like ICML and Xenitis.segment may also attract new indian players like ICML and Xenitis.

Global auto a JV of Xentis Group and China’s Guangzhou Automobile Industry based in bengal plans to Global auto a JV of Xentis Group and China’s Guangzhou Automobile Industry based in bengal plans to introduce a “people’s car that would be in sync with the affordability factor”. Xenitis signed a introduce a “people’s car that would be in sync with the affordability factor”. Xenitis signed a Memorandum of Understanding (MoU) with GAIG to manufacture four-wheelers. The proposed xenitis Memorandum of Understanding (MoU) with GAIG to manufacture four-wheelers. The proposed xenitis small car is likely to go on sale by the end of October 2008. Global Auto has launched a motorcycle small car is likely to go on sale by the end of October 2008. Global Auto has launched a motorcycle called Xpression early this year.called Xpression early this year.

TATA NANO IS THREAT FORTATA NANO IS THREAT FOR

Two wheeler manufacturersTwo wheeler manufacturersThe country’s largest car The country’s largest car

manufacturermanufacturerused-car dealers - Second hand car used-car dealers - Second hand car

buyers who spends between 1.5-buyers who spends between 1.5-2.5lakh may move easily for the new 2.5lakh may move easily for the new Tata’s one lakh car.Tata’s one lakh car.

Prominent small car playersProminent small car players

NEGATIVE POINTSNEGATIVE POINTS

Few disadvantages in a rear engine car:Few disadvantages in a rear engine car:uneven weight distribution and hence uneven weight distribution and hence

poor traction controlpoor traction controlpoor cornering and poor handlingpoor cornering and poor handlingpoor engine cooling and hence more poor engine cooling and hence more

chance for engine overheatingchance for engine overheatingalmost no boot space and cramped almost no boot space and cramped

space for rear passengersspace for rear passengers

NEGATIVE POINTSNEGATIVE POINTS

More congested roadsMore congested roadsMore supply - More surplus as less More supply - More surplus as less

exportexportMore competitionMore competitionLess marginsLess marginsLow qualityLow qualityHigh Real estate prices - parking space High Real estate prices - parking space

and parking charges will become moreand parking charges will become more

WORLD’S 5 CHEAPEST CARSWORLD’S 5 CHEAPEST CARS

1. Cheapest cars Tata Nano1. Cheapest cars Tata Nano

2. Cheapest cars Chery QQ32. Cheapest cars Chery QQ3

city car marketed in 2003. In China, it is sold for city car marketed in 2003. In China, it is sold for 29,000-50,000 Remnibi, while internationally it is 29,000-50,000 Remnibi, while internationally it is priced at priced at $5,000$5,000. antilock brake systems, dual . antilock brake systems, dual front airbags, power windows and a Euro-III front airbags, power windows and a Euro-III compliant engine with air-conditioning. compliant engine with air-conditioning.

3. Cheapest cars Maruti 3. Cheapest cars Maruti 800800

Introduced in 1983, Introduced in 1983, 800cc engine, 800cc engine, great fuel efficiency and low maintenance great fuel efficiency and low maintenance

cost. Tagged at cost. Tagged at $5,200$5,200, it is available in , it is available in both AC and non-AC versions. both AC and non-AC versions.

4. Cheapest cars: 4. Cheapest cars: Merrie StarMerrie Star

MMade by China-based Geely Automobile, four ade by China-based Geely Automobile, four doors , riced at doors , riced at $5,500$5,500, it was launched in 2005 , it was launched in 2005 engine size ranging from 1.0 to 1.3 litres, Geely engine size ranging from 1.0 to 1.3 litres, Geely exports this model to Southeast Asia and Africa. exports this model to Southeast Asia and Africa.

5. Cheapest cars S-RV Mini 5. Cheapest cars S-RV Mini SUVSUV

LLaunched in 1998, the aunched in 1998, the HQHQ or or Haoqing S-RVHaoqing S-RV belongs to the HQ series by Geely belongs to the HQ series by Geely Automobile, China. This five-door, five-seater Automobile, China. This five-door, five-seater is very roomy, adjustable pitch seats, The is very roomy, adjustable pitch seats, The basic model is priced at basic model is priced at $5,780$5,780. .

FUTURE QUESTIONSFUTURE QUESTIONS

Can the Tata’s meet the expectations? Can the Tata’s meet the expectations? Will the one lakh car convey the india’s Will the one lakh car convey the india’s

potential to the world? potential to the world? Will Tata stick to its price tag? Will Tata stick to its price tag? Will it make sense for Tata to have a car Will it make sense for Tata to have a car

when other players are moving to premium when other players are moving to premium segments? segments?

Will the more demanding customers like the Will the more demanding customers like the low cost machine?low cost machine?

SOME MYTHSSOME MYTHS

Curtains replacing glass windows, removable Curtains replacing glass windows, removable bolt-on seats instead of the regular ones, roof bolt-on seats instead of the regular ones, roof will be an optional add-on, and plastic body will be an optional add-on, and plastic body panels instead of the regular metal panels. panels instead of the regular metal panels. Yes, Tata had talks with General Electric for Yes, Tata had talks with General Electric for using its re-engineered plastics for its low using its re-engineered plastics for its low cost car and Tata may make use of modern cost car and Tata may make use of modern adhesives instead of welding to cut down adhesives instead of welding to cut down cost, but still there is no definite direction in cost, but still there is no definite direction in this issue but certainly there will be no this issue but certainly there will be no curtains. The one lakh car will be a complete curtains. The one lakh car will be a complete car with definite roof and glass windows.car with definite roof and glass windows.

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