production failure of nano cars

1. CRITICAL SUITATION IN
ORGANIZATION AND
MANAGERIAL SOLUTION
NAME:- S.ARAVINDAN
REGISTER NO:- RA1952001020024
MBA 1ST YEAR “A”
COMPANY NAME :- TATA MOTORS CRISIS

2. INTRODUCTION ABOUT THE COMPANY
 Tata Motors Limited, formerly Tata Engineering and Locomotive Company (TELCO), is an Indian multinational automotive manufacturing company
headquartered in Mumbai, Maharashtra, India. It is a part of Tata Group, an Indian conglomerate. Its products include passenger cars, trucks, vans, coaches,
buses, sports cars, construction equipment and military vehicles.
 Tata Motors has auto manufacturing and assembly plants in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad, and Pune in India, as well as in Argentina,
South Africa, Great Britain, and Thailand. It has research and development centres in Pune, Jamshedpur, Lucknow, and Dharwad, India and in South Korea,
Great Britain, and Spain. Tata Motors' principal subsidiaries purchased the English premium car maker Jaguar Land Rover (the maker of Jaguar and Land
Rover cars) and the South Korean commercial vehicle manufacturer Tata Daewoo. Tata Motors has a bus-manufacturing joint venture with Marcopolo
S.A. (Tata Marcopolo), a construction-equipment manufacturing joint venture with Hitachi (Tata Hitachi Construction Machinery), and a joint venture
with Fiat Chrysler which manufactures automotive components and Fiat Chrysler and Tata branded vehicles.
 Founded in 1945 as a manufacturer of locomotives, the company manufactured its first commercial vehicle in 1954 in a collaboration with Daimler-
Benz AG, which ended in 1969. Tata Motors entered the passenger vehicle market in 1988 with the launch of the TataMobile followed by the Tata Sierra in
1991, becoming the first Indian manufacturer to achieve the capability of developing a competitive indigenous automobile.[4] In 1998, Tata launched the first
fully indigenous Indian passenger car, the Indica, and in 2008 launched the Tata Nano, the world's cheapest car. Tata Motors acquired the South Korean truck
manufacturer Daewoo Commercial Vehicles Company in 2004 and purchased Jaguar Land Rover from Ford in 2008.
 Tata Motors is listed on the (BSE) Bombay Stock Exchange, where it is a constituent of the BSE SENSEX index, the National Stock Exchange of India, and
the New York Stock Exchange. The company is ranked 226th on the Fortune Global 500 list of the world's biggest corporations as of 2016.
 On 17 January 2017, Natarajan Chandrasekaran was appointed chairman of the company Tata Group. Tata Motors increases its UV market share to over 8%
in FY2019

3. Company logo and Product Images

4. Introduction About Nano Cars
 The Tata Nano is a compact city car that was manufactured and marketed by Indian
automaker Tata Motors over a single generation, primarily in India, as an inexpensive rear-
engined hatchback intended to appeal to current riders of motorcycles and scooters — with a
launch price of one lakh rupees or US$2500 in the year 2008.
 Numerous factors of sales volume, including delays during the factory relocation
from Singur to Sanand, early instances of the Nano catching fire, the perception of the car being
unsafe and lacking quality due to cost cutting led to increased reliability. Tata Motors projected
production of 250,000 annually at launch, actually achieving sales of 7591 for model year 2016-
17. The project lost money for Tata, confirmed by former Tata Sons chairman Cyrus Mistry and
confirmed by current Tata Motors management.
 In 2017, Tata Motors said manufacture would continue due to the Tata's emotional commitment
to the project. In 2018, Cyrus Mistry, former Chairman of the Tata Group, called the Tata Nano
a project in the works with China, with production revised in May 2018.

5. Turnover of Nano cars

6. Failure of Nano cars
Tata has announced that it is stopping the production of India’s cheapest car Nano due to a huge dip
in sales. It seems that India’s only middle-class friendly car is not actually loved by middle-income
families. Ratan Tata’s ambitious dream remains unfulfilled, even though his company did its best to
attract middle-income families by labelling Nano as ‘India’s car’. Due to zero exports in June this
year and 25 exports in the same time last year, the company has been left with no option except to
quit production. So, who should we blame for this? The company or Ratan Tata or the Indian middle-
class.

7. Reasons for failure of Nano motors
 Every now and then, a magnificent dream miraculously turns into reality after years of dedication
and hard work. The Nano started off as one such dream by Ratan Tata that eventually became
reality as an inexpensive hatchback for Indians who commuted every day on their scooters or
motorbikes. Those who braved the weather, the pollution, and the risk to commute to work and
back simply to provide for their families deserved at least some respite, some soothing comfort.
 For most, the Nano would have been their very first Tata car, while for others it was a dream
come true. Yet, even though the idea was sound, the vehicle failed to capitalize on the market
potential and production has all but ended after sales of the company dropped to extremely low
levels.
 So, what could have been a great legacy, became one of the most important case studies in brand
positioning and effective marketing for the automobile industry in India.

8. Possible solution to develop of Nano cars
 When a brand develops negative associations there are only two possible
solutions: reposition or replace. Repositioning the Nano would have been a
challenge. The brand received enormous attention during its launch. All the
attention, however, became a problem when the stories turned negative.
 Replacing the Nano makes much more sense.

9. Conclusion
71 percent of respondents have shown their preference towards low engine capacity cars
to get higher fuel efficiency. It shows that in future only cars giving higher fuel efficiency
will be preferred by Indian consumers.73percent of the respondents have shown their
preference toward small cars as due to increased traffic and congestion on roads. As
vehicle population is increasing continuously and size of city roads started appearing
narrow, it can be concluded that small cars will prove sustainable in the future.74 percent
of respondents have shown their preference towards small cars due to parking
convenience of roads. In cities due to phenomenal increase in number of vehicles, parking
is proving to be a big problem. Parking of small cars is a bit easy and therefore, in future
people are likely to prefer small cars.

10. References
 https://www.google.com
 https://www.wikipedia.org

11. THANK YOU