A

Project Study Report

On

New Product Development With

Tata Nano
And
Comparative Study on Maruti Suzuki Alto 800
In partial fulfilment for the
Award of degree of
BACHELOR OF BUSINESS ADMINISTRATION

Submitted To :

Submitted By:

Dr. Satish Sharma

Ganesh Jangid

Faculty Guide

Jagroop Barar
Jitendra Kumar
Love Kumar
Manoj Kumar Soni

PODDAR INTERNATIONAL COLLEGE

1

PREFACE
This is the specialization project on a study onNEW PRODUCT DEVELOPMENT
WITH TATA NANO AND COMPARATIVE SYUDY ON MARUTI SUZUKI ALTO 800
The objective of this study is to gain knowledge about how Tata brought this new
product i.e., Nano up to the development stage and finally going to launch .
During the project We researched on how Tata developed Nano
costing Rs 1 lakh and what will be its effects. This study also includes comparison
between Tata Nano and Maruti Suzuki Alto 800. A survey was also done for
understanding consumer buying pattern and preferences.

Thus, this study is based on new product development in marketing for Tata Nano.

ACKNOWLEDGEMENT
Such Thanks I give as near death to those that wish him Live - Shakespeare
A formal statement of acknowledgement will hardly meet the ends of justice in the
matter of expressing my deep sense of gratitude and obligation to all those who helped
me in the completion of this project report.

We express gratitude to various faculty members especially Dr. Satish Sharma for his
valuable guidance which was a good learning experience in order to make us efforts
successful.
Special, continual assistance while collecting the data was provided by the respondents.
We wish to acknowledge my special thanks to them for their help and cooperation in
order to complete this project.
We also thankful to those who have helped me intellectually in preparation of this
project directly or indirectly.
We deeply indebted to the various sources of information from relevant sites from
internet and books and newspapers which helped me a lot in my study and helped me
to learn a lot.

Ganesh Jangid
Jagroop Barar
Jitendra Kumar
Love Kumar
Manoj Kumar Soni

Table of contents:
Sr.
No.
1

Subject

Pg. No

Introduction to Automobile industry in India

5
Introduction to the subject new product
development
13

Introduction to Tata Nano

22

Tata Nano and new product development

27

Upcoming Variant Of Tata Nano In 2013

38

Some myths about Nano

46

Comparison between Nano and Maruti Suzuki

Alto 800
49

Research Methodology

64

Data collection method& interpretation

70

10

Some feedback about Nano

91

11

Conclusion

93

12

Bibliography

101

Introduction to
Automobile industry
in India

Introduction to Automobile industry in India

The automotive industry in India is one of the larger markets in the world and had
previously been one of the fastest growing globally, but is now seeing flat or negative
growth rates.India's passenger car and commercial vehicle manufacturing industry is
the sixth largest in the world, with an annual production of more than 3.9 million units in
2011.According to recent reports, India overtook Brazil and became the sixth largest
passenger vehicle producer in the world (beating such old and new auto makers as
Belgium, United Kingdom, Italy, Canada, Mexico, Russia, Spain, France, Brazil), grew
16 to 18 per cent to sell around three million units in the course of 2011-12.In 2009,
India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South
Korea, and Thailand. In 2010, India beat Thailand to become Asia's third largest
exporter of passenger cars.
As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million
automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the
country the second (after China) fastest growing automobile market in the world in that
year. According to the Society of Indian Automobile Manufacturers, annual vehicle sales
are projected to increase to 4 million by 2015, no longer 5 million as previously
projected.
The majority of India's car manufacturing industry is based around three clusters in the
south, west and north. The southern cluster consisting of Chennai is the biggest with
35% of the revenue share. The western hub near Mumbai and Pune contributes to 33%
of the market and the northern cluster around the National Capital Region contributes
32%. Chennai, with the India operations of Ford, Hyundai, Renault, Mitsubishi, Nissan,
BMW, Hindustan Motors, Daimler, Caparo, and PSA Peugeot Citron is about to begin
their operations by 2014. Chennai accounts for 60% of the country's automotive
exports. Gurgaon and Manesar in Haryana form the northern cluster where the
country's largest car manufacturer, Maruti Suzuki, is based. The Chaka corridor near
Pune, Maharashtra is the western cluster with companies like General Motors,
Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land
Rover, Jaguar Cars, Fiat and Force Motors having assembly plants in the area. Nashik
6

has a major base of Mahindra & Mahindra with a UV assembly unit and an Engine
assembly unit. Aurangabad with Audi, Skoda and Volkswagen also forms part of the
western cluster. Another emerging cluster is in the state of Gujarat with manufacturing
facility of General Motors in Halol and further planned for Tata Nano at their plant
inSanand. Ford, Maruti Suzuki and Peugeot-Citroen plants are also set to come up in
Gujarat. Kolkata with Hindustan Motors, Noida with Honda and Bangalore with Toyota
are some of the other automotive manufacturing regions
The first car ran on India's roads in 1897. Until the 1930s, cars were imported directly,
but in very small numbers.
An embryonic automotive industry emerged in India in the 1940s. Mahindra & Mahindra
was established by two brothers as a trading company in 1945, and began assembly of
Jeep CJ-3A utility vehicles. Following the independence, in 1947, the Government of
India and the private sector launched efforts to create an automotive component
manufacturing industry to supply to the automobile industry. However, the growth was
relatively slow in the 1950s and 1960s due to nationalization and the license raj which
hampered the Indian private sector. Total restrictions for import of vehicles were set and
after 1970 the automotive industry started to grow, but the growth was mainly driven by
tractors, commercial vehicles and scooters. Cars were still a major luxury. Eventually
multinational automakers, such as, though not limited to, Suzuki and Toyota of Japan
and Hyundai of South Korea, were allowed to invest in the Indian market around the
country. Ultimately leading to the establishment of an automotive industry in India. A
number of foreign firms also initiated joint ventures with Indian companies.
On 03-18-23 global brands such as Proton Holdings, PSA Group, and Geely Holding
Group are shelving plans for India do to the global economic crisis.

Emission norms
In tune with international standards to reduce vehicular pollution, the central
government unveiled the standards titled 'India 2000' in 2000 with later upgraded
guidelines as 'Bharat Stage'. These standards are quite similar to the more stringent
European standards and have been traditionally implemented in a phased manner, with
the latest upgrade getting implemented in 13 cities and later, in the rest of the nation.
Delhi(NCR), Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmadabad, Pune,
Surat, Kanpur, Lucknow, Solapur, and Agra are the 13 cities where Bharat Stage IV has
been imposed while the rest of the nation is still under Bharat Stage III.

Exports

Mahindra Scorpio Jeep in service with the Italy's CNSAS.

India's automobile exports have grown consistently and reached $4.5 billion in 2009,
with United Kingdom being India's largest export market followed by Italy, Germany,
Netherlands and South Africa. India's automobile exports are expected to cross $12
billion by 2014.
According to New York Times, India's strong engineering base and expertise in the
manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of
manufacturing facilities of several automobile companies like Hyundai, Nissan, Toyota,
Volkswagen and Maruti Suzuki.

In 2008, South Korean multinational Hyundai Motors alone exported 240,000 cars made
in India. Nissan Motors plans to export 250,000 vehicles manufactured in its India plant
by 2011.Similarly, USautomobile company, General Motors announced its plans to
export about 50,000 cars manufactured in India by 2011.
In September 2009, Ford Motors announced its plans to set up a plant in India with an
annual capacity of 250,000 cars for US$500 million. The cars will be manufactured both
for the Indian market and for export. The company said that the plant was a part of its
plan to make India the hub for its global production business. Fiat Motors also
announced that it would source more than US$1 billion worth auto components from
India.

A Tata Safari on display in Poznan, Poland.

In July 2010, The Economic Times reported that PSA Peugeot Citron was planning to
re-enter the Indian market and open a production plant in Andhra Pradesh with an
annual capacity of 100,000 vehicles, investing EUR 700M in the operation. PSA's
intention to utilize this production facility for export purposes however remains unclear
as of December 2010. In 2009 India (0.23m) surpassed China (0.16m) as Asia's fourth
largest exporter of cars after Japan (1.77m), Korea (1.12m) and Thailand (0.26m) by
allowing foreign carmakers 100% ownership of factories in India, which China does not
allow.

The Maruti Ertiga, a model exported by Maruti Suzuki India.

In recent years, India has emerged as a leading center for the manufacture of small
cars. Hyundai, the biggest exporter from the country, now ships more than 250,000 cars
annually from India. Apart from Maruti Exports' shipments to Suzuki's other markets,
Maruti Suzuki also manufactures small cars for Nissan, which sells them in Europe.
Nissan will also export small cars from its new Indian assembly line. Tata Motors
exports its passenger vehicles to Asian and African markets, and is in preparation to
launch electric vehicles in Europe in 2010. The firm is also planning to launch an electric
version of its low-cost car the Tata Nano in Europe and in the U.S. Mahindra &
Mahindra is preparing to introduce its pickup trucks and small SUV models in the U.S.
market. Bajaj Auto is designing a low-cost car for Renault Nissan Automotive India,
which will market the product worldwide. Renault Nissan may also join domestic
commercial vehicle manufacturer Ashok Leyland in another small car project. While the
possibilities are impressive, there are challenges that could thwart future growth of the
Indian automobile industry. Since the demand for automobiles in recent years is directly
linked to overall economic expansion and rising personal incomes, industry growth will
slow if the economy weakens.
Top 20 export destinations in 2007-2008 and growth from previous year
Rank Country
1

United States of

2007-2008 (in USD 2008-2009 (in USD Percentage

Millions)
593.64

Millions)
525.24

Growth
-11.52
10

2007-2008 (in USD 2008-2009 (in USD Percentage

Rank Country
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Millions)

America
Italy
332.35
Sri Lanka
249.14
South Africa
224.93
United Kingdom
165.57
United
Arab
164.44
Emirates
Algeria
147.34
Bangladesh
137.26
Egypt
134.43
Germany
133.52
Colombia
118.88
Nepal
111.33
Mexico
93.80
Turkey
83.53
Spain
81.01
France
76.77
Nigeria
66.01
Greece
65.75
Netherland
65.19
Ghana
59.91

Millions)

Growth

359.68
216.11
188.57
246.32

8.22
-13.26
-15.79
48.77

192.74

17.21

265.63
164.86
143.54
409.63
120.71
98.13
94.10
73.82
56.96
134.21
148.74
127.63
163.66
38.30

80.28
20.11
5.99
206.8
1.54
-11.86
0.32
-11.63
-29.69
74.83
125.03
94.1
151.05
-36.07

Passenger vehicles in India

This list is of cars that are officially available and serviced in India. While other cars can
be imported to the country at a steep 105% import duty, car-makers such as Romeo,
McLaren, Pagani, Cadillac, Chrysler, SSC,Zenvo, SEAT, Smart,Daihatsu, Lexus, Infiniti,
Acura,

Saab,

Spyker,

Lotus,

Ariel,

Caterham,Peugeot-Citron,

Mazda,

Jeep,

SsangYong, Kia,GAZ and Proton are in varying stages of official introduction to the
Indian automobile market.
Electric vehicle and Hybrid vehicle (xEV) industry
During April 2012 Indian Government has planned to unveil the roadmap for the
development of the domestic electric and hybrid vehicles (xEV) in the country. A
discussion between the various stakeholders including Government, industry and the
academia is expected to take place during 2324 February. The final contours of the
11

policy will be formed after this set of discussions. Ministries such as Petroleum,
Finance, Road Transport and Power are involved in developing a broad framework for
the sector. Along with these ministries big auto industry names such as MrAnand
Mahindra (Vice Chairman and Managing Director, Mahindra & Mahindra) and
MrVikramKirloskar (Vice-Chairman, Toyota Kirloskar) are also involved in this task.
Government has also proposed to set up an Rs 740 crore R&D fund for the sector in the
12th five year plan during 2012 The idea is to reduce the high cost of key imported
components such as the battery and electric motor and develop such capabilities
locally.

12

Introduction to the
subject new product
development

Introduction To New Product Development

Meaning Of Product:

E.g.:- milk, computer, shoes, service after sales, railway services etc. a product can be
divided into two categories
o Tangible goods
13

o Intangible goods
Tangible products are known as goods that can be touched, felt and seen. E.g.:computer, mobile phone etc
Intangible products are known as services that cannot be touched and seen as the
customer can feel and experience only after utilizing it. E.g.:- service after sales
New Product Development:
A product can be considered new under the following situations:

New-to-the-world products
New product lines
Additions to existing product lines
Improvements and revisions of existing products
Repositioning
Cost reductions

Stages Of New Product Development

Before the introduction of a product into the market, it goes through several stages of
development. These stages are known as stages of new product development. It
includes the following:

Idea Generation:

14

Companies seek new ideas to enhance the performance of the existing products and to
innovate new ideas. This stage is called idea generation stage. There are many sources
for idea generation. It may be from customers, dealers etc.
Employees throughout the company can also be a source of idea. Toyota claims that its
employees submit two million ideas annually over 85% of which are implemented.
Companies also find good ideas by researching competitors products and services.
They can find out what the customers like or dislike about their competitors products.
Ideas can also come from investors. External research, surveys industrial publications
research and development etc.
But the main source of idea generation is the customers by their grievances and
complains and feedback. However, although ideas can flow from many sources, it is not
feasible to implement all the ideas generated due to lack of time and capital.

Idea Screening
The main purpose of idea generation is to collect a larger number of ideas. However,
not all ideas can be commercially viable. Therefore, the companies filter the less viable
ideas with the help of systematic process. Companies can use various parameters to
screen the ideas such as market size, technical capabilities, potential competition etc.
Addressing the following issues will also help the companies to analysis the
attractiveness of ideas.
15

 Whether the product idea match the existing products of the

company.
The degree to which the new product can cannibalize the
sale of the existing product.
Companys ability to produce and market the product.
Buying behavior and the probable changes in

the

environment.
While screening the ideas, an organization may commit two types or errors.
Drop error where the firm rejects a very good idea.
Cro error where a company selects a poor idea.

Concept Testing And Development:

All ideas that survive in the process of screening will be studied in details. They will be
developed into mature products. At this stage, the idea is submitted for the external
evaluation to get a feedback from the market. It helps a firm are organization to collect
important information like customers initial reactions towards the product development.
During this stage, new product idea is described in the form of one or more benefit that
is then presented to a sample of potential customers for their reactions.

16

Marketing Strategy:
Following a successful concept test, the new product manager will develop a
preliminary strategy plan for introducing new product in the market. The plan consists of
three parts.
The first part describes the target market size, structure and behavior for the first
few years.
The second part outlines the planned price distribution strategy and marketing
budget for the 1st year.
The third part of marketing strategy plan describes the long run sales and profit
goals and the marketing mix strategy over time.

Business Analyses.
After management develops the product concept and market strategy, it can evaluate
the business attractiveness. Business analyses are the first in-depth financial evaluation
of new product to be developed. Here management needs to prepare sales cost and
profit projections to determine whether they satisfy company objectives. If they do, then
concept can move to the development stage. SOWT analysis will be conducted at this
stage by the organization. It also includes the following:

17

Total sales estimation:These are the sum of estimated first- time sales, replacement sales and repeat sales.
Its method depends upon whether the product is one time purchase(an engagement
ring), an infrequently purchased products like toaster, auto mobile etc. or a frequently
purchased products like consumer and industrial non durables.

Estimation costs and profits.

The R&D, manufacturing, marketing and financial departments estimates the costs. The
profitability of the new product is estimated through various financial tools. The simplest
technique is the breakeven analysis in which the management estimates how many
units of the product the company would have to sell to break even with the given price
and cost structure. If the management believes that sales could easily reach the break
even number, it is likely to move the project into development stage.

Product Development
In this stage, detailed technical analysis is conducted to know whether the product
produced at costs is low enough to make the final price attractive to the customer.
Here a working model or a prototype is developed to disclose all tangible and intangible
attributes of the product. A product protocol is prepared which is a detailed downiest
containing the important attributes that are expected in the product. Once the protocol
has been developed, it is handed over to the research the development department to
develop the prototype of the product.
18

Test Marketing:
The test marketing is the stage where the product is introduced in a few selected cities.
During this stage, the company has to fate the following expense:
High advertisement
High manufacturing cost.
High distribution cost etc.
For testing the product, marketer needs to make the decision on the following issues.
The no. of cities in which the product is to be tested.
Geographic location of the cities.
Time to carry ort test marketing.

Through this exercise, company can know the customers response, feedback,
suggestions, complaints and any other changes required to be done for product
modification.
After successfully laughing the product in selected cities the company launches the new
product in all other cities.

There are certain methods of product testing.

Alpha Testing
19

In this method, a group of target audience is selected from the employees of the
company.

Beta Testing:
It is carried out at the customers site. Generally, it is applicable for industrial products
where the customization takes place.

Gamma Testing:
It is carried out on a long term basis where the customers uses the product extensively
and gives response after a long period of time. Say six months.

Commercialization:
The results of the test marketing help marketers to decide the changes that are needed
in the marketing mix before entering into the market. It also helps the marketer to decide
the amount of production distribution strategy, selling efforts and other issue like
providing guarantees, service after sales etc. the product enters the market during the
commercialization stage.

Introduction To Tata Motors:

o Tata Motors was established in 1945, when the company
began making trains.
20

o It has its manufacturing base in Jamshedpur, Lucknow,

Pune and soon one more plant established at Singur,
West Bengal.
o Product Manufactured - Passenger Cars and commercial
vehicle
o Installed Capacity - 350,000-400,000 vehicles a year
o Investment - Rs 2,500 crore (Rs 25 billion)
o Turnover - $21.9 billion (Rs 967,229 million)
o Employees - 2,46,000/22001
o Tata Motors had created the wealth Rs. 320 billion during
2001-2006 and stood among top 10 wealth creators in
India.

Introduction to Tata
Nano

21

Tata Nano - ONE LAKH CAR PROJECT

Peoples Car
A promise is a promise, said Rattan Tata, Chairman, Tata
Motors, on 10th January, 2008, when the Nano was first displayed at the Auto Show
in Delhi. The Nano project didnt grab the attention of only Indians; the entire world
had their eyes glued to the worlds cheapest car.
A truly Peoples Car, this time is from India. Though the dealer price is Rs. 1 lakh, the
price on road, when it will be launched, will reach around Rs. 1,25,000 but it will be
still more affordable and will be more eco-friendly than most other cars giving a
mileage of around 23km/liters. The price of the car is such that a lot of rich and HNIs,
if interested, can buy the car just by a single swipe of their credit cards.
Providing a car worth rupees one lakh car was the dream of the chairman of Tata
motors Mr. Rattan Tata. And with high qualified IT skills people he has shown the
Indian talents to whole the world.

22

 Idea conceived by Cost of development Manufacturing cost

Rattan Tata
1700 crores

(excluding dealer margin and taxes)- Rs 65,000 per unit

Development of Design India
Time for designing the car 4 years
Team - A team of 150 engineers , everyone below age 28
Biggest hurdle - To make a car cheap car without Compromising design

May western countries as well as many foreign countries

have accepted Indian IT

skills?

Details Of Nano
Specs:
Engine: 624 cc / 33 bhp
4 door, 5 seater (and yes 4 Wheeled too)
Rear Engine
Weight: 600 kgs
Mileage - 22-23 km/liter
Variants:
Standard
Deluxe (with AC)
Future:
Diesel And CNG Variant
Exports outside India or assembly plants outside

Comparison
23

8% less in length (bumper to bumper) with respect to Maruti Suzuki Alto 800 21%
more in inner space with respect to Maruti Suzuki Alto 800
Looks:
Front side looks more like Matiz (or Spark as we now call it)Back side looks more like
India with those long tail lights.
Insight:
People often criticize something that is making waves everywhere. This has also been
the case with Tata Nano. Competitors, safety regulators, environmentalists and most
others conceived the problems that India will face, when such a car is available, much
before the actuallaunch of the car.

This will result into:

OLD GENERATION

NEW

GENERATION

24

SOWT Analysis
25

 STRENGTH

OPPORTUNITIES

Brand name TATA

Large market for selling

Cost price low

Awareness in the market

Fuel efficient

First car in low range

Safe

Can hit in global market

26

WEAKNESS
Low power
Not a status symbol
Delay in manufacturing
Limited features

THREATS
Company rival
Not sure to hit in rural and semi-urban areas

27

Tata Nano and

new product
development

New Product Development

AndNano

As seen before, A product can be considered new under the following situations:

New-to-the-world products
New product lines
Additions to existing product lines
Improvements and revisions of existing products
Repositioning
Cost reductions

As far as Nano is concerned, it falls into new to the world products in the context
that it has made a history for the cheapest car ever made without compromising
on quality. I.e. best way value analysis.
It can also be considered as new product in the since of cost reduction as its the
first time in the history that such a cheap car is produced.

The story of the Nano is not confined to its impact on the auto industry. It's a tale
that illuminates the India of todayan eager, ambitious nation with a combination
of engineering talent, a desire for low costs and value, and the hunger of young
managers looking to break from a hidebound corporate environment. Indeed, the
team that worked on the Nanoon average aged between 25 and 30has
helped to flatten Tata Motors' stodgy, multilayered management structure, which

has resulted in an unexpected side-benefit called organizationalinnovation".

Idea Generation AndNano

A dream is born

Says, I observed families riding on two- wheelers -- the father driving the
scooter, his young kid standing in front of him, his wife seated behind him holding
a little baby. Add to that the slippery roads & Night time too. It is downright
dangerous. It led me to wonder whether one could conceive of a safe, affordable,
all-weather form of transport for such a family.
So when Tata Motors needed someone to take charge of the company's most
ambitious plan yet to build the world's cheapest car ever Ravi Kant, who by then
had become the company's managing director, again turned to Wagh. Wagh
remembers what he learned marketing the little truck. "People want to move from
two-wheelers to four-wheelers," he says. "Today they can't afford it."
More and more can, but Indian car buyers today represent a tiny slice of a
potentially giant market India has just seven cars per 1,000 people. India's auto
industry has grown an average of 12% for the past decade, but just 1.3 million
passenger vehicles were sold in India in the fiscal year ending March 2006. That
means a billion Indians buy about the same number of cars in a year as 300
million Americans buy in a month.
If four wheels cost as little as two wheels, that could change fast. About 7 million
scooters and motorcycles were sold in India last year, typically for prices between
30,000 rupees and 70,000 rupees, about $675 to $1,600. Tata is targeting a price
of 100,000 rupees one lakh, in Indian terms of measurement or about $2,500 at

current exchange rates, for its small car. That sounds impossibly cheap in the
West but remains three times higherthan India's annual per capita income. The
average pay for factory workers at Tata Motors is just $5,500 a year.

Idea screening

The next step was the screening of idea. How is this dream

possible? What should they make?

A scooter with two extra wheels at the back for better stability?
An Auto-rickshaw with four wheels?
A three wheeled car like a closed auto- rickshaw??
A four wheeled car made of Engineering Plastics?
A Four wheeled rural car?
Rolled up Plastic curtains in place of windows?
Openings like Auto rickshaws from the side
A four wheeled open car with safety side bars?

But the market wanted a car and if they build a peoples car it should be a car
and not something that people would say, Ah! Thats just a scooter with four
wheels or an auto-rickshaw with four wheels & not really a Car. Trying to build a
car cheap enough for motorcycle buyers seems to make sense now but seemed
crazy several years ago when Rattan Tata, longtime chairman of Tata Motors and
scion of the nation's giant Tata Group conglomerate, first mentioned his dream of
building a one-lakh car in 2003. "They are still saying it can't be done," he says,
insisting that it can and will. "Everybody is talking of small cars as $5,000 or
$7,000. After we get done with it, there will hopefully be a new definition of lowcost."

Concept Testing And Developing

Before starting the project, Wagh did something no one at

Tata Motors ever had: He talked to customers. The three-wheeler men inevitably
insisted on a cheap, dependable truck that could go from village to market carrying, say,
a ton of onions or potatoes, one night, as sunset approached, Wagh stuck with one
rickshaw driver. He says, "I kept asking the question. Why? Why? Why do you want a
four-wheeler?" Wagh remembered. Finally, he got the real answer. It turned out it wasn't
really a problem of transportation of vegetables If I had a four-wheeler, I would have
better marriage prospects in my village," the young man said. Drivers of three-wheelers
are looked down upon in India. Wagh realized that four wheels had emotional, not just
practical, appeal.

Thus the new product was now to be developed.

But what type of product?
The car to cost Rs. 1 lakh on road.
The car should be built on a different platform than conventional ones.
It must be meeting all the safety and regulatory requirements.
It has to be built on a scale which shall be more than double the earlier launches
of similar products and the ramp up must be smooth.
The car has to be designed so that it can be exported to other countries as the
domestic demand may not materialize as per projections.
The car must be a beacon for the Indian Automobile industry and prove to the
world that we are capable to take any challenge and come out worthy winners.
That quest to build the world's cheapest car hasn't ended. The Nano should be
available this fall, but the mission began back in 2003, when Rattan Tata,

chairman of Tata Motors and the $50 billion Tata conglomerate, set a challenge to
build a "people's car". Tata gave an engineering team, led by 32-year-old star
engineer Garish Wagh, three requirements for the new vehicle: It should be lowcost, adhere to regulatory requirements, and achieve performance targets such
as fuel efficiency and acceleration capacity.
The design team initially came up with a vehicle which had bars instead of doors
and plastic flaps to keep out the monsoon rains. It was closer to a quadricycle
than a car, and the first prototype, even a bigger engine, which boosted the
power by nearly 20 per cent, was still dismal. "It was an embarrassment," says
Wagh.
But failure didnt stop them they quickly realized it was necessary to bring
everyone on board, "else it leads to last-minute heartache and delays". Every
morning, he would spend an hour or two on the floor of the Pune factory, insisting
that

everyone

involveddesigners,

manufacturing

teams,

and

vendor

development peoplebe there to accelerate decision-making and problemsolving.

Over time, Wagh's team grew to comprise some 500 engineers, an impractically
large group to gather on a daily basis. So instead, a core team of five engineers
gathered every day at three pm to discuss the latest developments. Each
engineer represented a different part of the car: engine and transmission, body,
vehicle integration, safety and regulation, and industrial design.
The body had to be changed because Rattan Tata, over six feet tall himself,
wanted it to be easy for tall people to get in and out of the car. "Imagine the plight
of the body designerhe went through hundreds of iterations, then at the last
minute the car length was increased by 100 millimeters!" Wagh says. The
attention to detail paid off: When the car rolled onto the dais at the Auto Show in
New Delhi in January, and Rattan Tata stepped out of the driver's seat with ease,
it made an immediate impact.

 What shook the automobile world most was the fact that the designers seem to
have done the impossible: The sleek, sophisticated Nano doesn't look flimsy or
inexpensive. If it had been an upgraded scooter on four wheels, Tata still would
have been applauded for making a family of four safer on Indian roads. The
Nano, however, affords both safety and status. "The innovation wasn't in
technology; it was in a mindset change".

Business Analysis
Cost
Since the car had to be built within a cost of Rs. 1 Lac, no conventional design
would work as the costs shall be higher and so the entire car has to be
redesigned.
What makes Nano so less expensive can be well understood from the following
diagram

The design has to question the need of each and every component from the
point of view of its necessity of existence and also the minimum requirements of

its functionality. Value Engineering concepts have to be deployed to finalize the

minimum requirements.

Disruptive Technology:
Is a Technology that brings radical change by introducing new ways of doing
things usually at a Technology that is:

Significantly cheaper than existing Technology.

Is much higher performing?
Has greater functionality and
Is more convenient to Use.
Brings to market a totally different Value proposition than the
one available and can change the Paradigm about a
product.

The Guiding factor was that the cost has to be minimized for each component yet
maintaining its basic functionality.
The Alternatives are:

Reduce Consumption of Material being used.

Alternate Suppliers to get same material at fewer prices.
Use alternate materials.
Eliminate use of Material.
Eliminate a process Or a Combination of the above.

The design was outsourced to Italy's Institute of Development in Automotive

Engineering, but Tata himself ordered changes along the way. Most recently he
vetoed the design of the windshield wipers. His solution: a single wiper instead of
two, giving the car a cleaner look.
THE COST REDUCTION PARADIGM Value Engineering Alternatives:


The target was very clearly defined that within the given cost structure of 1 Lac
all the components have to be allocated a maximum price and the same had to
be achieved using the available alternatives.
The Guiding factor was that the tax structure, on materials and manufacturing,
must support the final cost of Rs. 1 Lac

The Decisions were:

Establish factory in a tax free zone.

Get the tax advantages on infrastructure development.
Get the suppliers to establish base near the factory.
Get special concessions from State Govt.
In short select a manufacturing location where all the
advantages could be achieved.

In short select a manufacturing location where all the advantages could be

achieved.

Total sales estimation

Now the question was, how much to produce

It was estimated that the demand for the peoples car shall
be at least twice the demand for Maruti 800, the lowest end
car. Initial projections were at about 500 K cars per year.
The basic reason was the conviction that the target price
shall redefine the 4 - wheeler segment.
The price decision of Rs 1 lakh is definitely going to make a
lot many people transit to 4-wheeler fold and that shall
explode the demand.
F only 10% customers of 9 Million two wheeler market transit
to 4-wheelers it shall amount to 50% of the passenger car
market share.

 It was decided to set up plants with 5 lacs cars per annum

capacity and ramp the same up in stages, in line with
increase in market demand.

The initial response to the Nano has been overwhelming and the tiny, Noddyland car is expected to help the company cross several milestones. With
revenues at Rs 1,29,994 crore for the financial year 2006-7, and group
companies enjoying a market capitalization of Rs 2,51,487 crore as on January
10, 2008, the Tata Group is on a strong footing, contributing more than 3 per cent
to India's GDP. Nano, being the world's cheapest car, has made international
players sit up in amazement and the company has received proposals from some
African, Latin American and Southeast Asian countries to manufacture the car
there.

Product Development
And finally the product was developed with the following features.
Engine Capacity Bosch 624 c.c. twin cylinder
Low capacity, Lighter, sufficient with better Power Rear Engine to reduce the

transmission length using a balancer shaft.

4 Speed Manual Gear Box
All Aluminum Engine
Higher thermal conductivity than cast iron, Lighter and so better mileage
Engine Management System by Bosch
Superb control over emission and smooth acceleration.
Dimensions L: 3.1m, W: 1.5m, H: 1.6m
Less length but more inner cabin space due to height. Comfortable leg room.
Independent Front & Rear Suspension McPherson Strut in Front & Coil spring &

trailing arm in rear.

Better ride than Maruti Suzuki alto 800.
Single piece ribbed steel body with safety features such as crumple zones,
intrusion resistant doors, seat belts, strong seats & anchorages.
Safety requirements are adequately met.
Single Wiper in place of two.

 Cost effective yet functionality is met

Tube less Tires
Weight reduced by 2 Kg. Cost reductions 200 Rs. And in line with modern

vehicles
Instrument console in the centre
Elegant to look at and can be used both in Left Hand & Right hand version.
The list goes on and on.
The Final verdict

THE CAR COSTS Rs 1 lac

Test Marketing And Commercialization

Nano is soon going to launch by the end of April. It will be commercialized

in whole of India. It is mostly targeted to the middle class and lower middle class people.
The effects of Nano and its commercialization will be soon known after it comes into the
market.

UPCOMING
NANO IN 2013

VARINT

Tata Nano to get a DIESEL VARIANT-:

OF

TATA

 Tata Nano Diesel is one of the much awaited cars in the Indian auto market. It is
anticipated that the car will be introduced in 2013 in the hatchback segment. As
per latest updates, the Nano Diesel will have the smallest diesel power-train in
the world, which will set another record in Nanos history. Post launch, the car will
be considered as the most fuel efficient diesel car in India. It is expected that the
Tata Nano Diesel will hold a CRDI diesel engine from Bosch. The car maker has
not provided much detail regarding the technicalities of the Nano Diesel.

Tata Nano Diesel will be assimilated with a 0.7 litre diesel engine, which will have
a displacement of 700 cc. The maximum power churned out by the engine of this
car is 33 bhp, which is quite acceptable in this segment. In addition, maximum
torque attained by this engine is 51 Nm at 4000 rpm. In order to assist the
mechanism of this car, the engine of Tata Nano is expected to be assimilated
with a four speed manual transmission. Tata Nano diesel is equipped with a
performance oriented engine and thus it is bound to deliver low emission and a
decent fuel economy. The company has not made any official declaration
regarding the test figures of Tata Nanos fuel economy, but it is expected that the
car will cover a distance of 40 kmpl, which is excellent in this segment.

In order to deliver a hassle free drive to its passengers, the company has
incorporated independent McPherson Struts, coil spring suspensions in the car.
Along with this, analysts are also expecting revamped suspension system and a
power assisted steering wheel, which are some of the mechanical upgrades that
will be incorporated within the car.

 Tata Nano Diesel will be incorporated with improved interiors with up market
upholstery. As per speculations, the car will have better bolstered seats to
provide optimum comforts to its passengers. Tata Nano Diesel will be provided
with sufficient space for the passengers of both the rows, resulting in a peaceful
journey. Four passengers can comfortably travel in the car. A boot space of 80
liters enhances the comfort of this small car.

Tata Nano Diesel will be almost identical to the current petrol version of Nano.
The length, width and height of Tatas new car are 3099 mm, 1495 mm and 1652
mm, respectively. Fuel tank capacity of the car is 30 litres, which is quite
sufficient since its performance oriented engine delivers an impressive fuel
economy. Apart from these advancements, the company has also made a special
provision for the security of its passengers, and thus the car holds some of the
advanced safety features. The company has offered seat belts in front as well as
rear portion, remote central locking system, fog lamps in front as well as rear end
and door ajar warning system.

About Tata Nano Diesel

Almost two years after launching the petrol version of its small creation Tata
Nano in the Indian market, Indian auto giant Tata Motors is now planning to
launch the diesel version of this car in the country by Sep 2011. The engine
capacity of the Nano Diesel is speculated to be in the range of 600 to 700 cc and
the Nano Diesel will boast the worlds smallest Bosch Common Rail Direct
Injection (CRDi) system.

 The Tata Nano diesel will be the smallest diesel run car in the Indian market as
so far there are only petrol run cars available in the starting range segments A
(Maruti 800) and A+ (Maruti Alto). Tata Nano diesel will be the only such car in
the country and will thus create a segment of its own in the Indian auto market.

Fact Sheet:

Make

Tata

Model

Nano

Fuel Types

Diesel

Price

Rs.1.75 lakhs to Rs.2.5 lakhs

Key
Specifications

0.7 litre CRDI engine of 700 cc

Maximum power produced 33 bhp at

5500

rpm,

whereas

highest

torque

attained is 51 Nm at 4000 rpm.

Launch Date of Nano Diesel: Nano Diesel can be seen any where between
August - October 2013 in Indian Market.
It will come in 3 models - Base, Cx, Lx Models

Tata Nano to get a CNG VARIANT-:

Tata will also be launching a CNG variant of the Tata Nano, which should reduce
running costs considerably. The CNG variant of the Nano will have its CNG tank
under the front seats to distribute weight more evenly and save space in the car.
It will, however, be a much smaller tank than what hatchbacks normally carry, but
the combined range of the 15 litre petrol tank and CNG should give the car a
range of over 500 km. It should be introduced this summer.
The new Tata Nano CNG Concept Car powered by 624cc, which generates with
Maximum Power 37 Bhp @ 5500 rpm, Maximum Torque 51 Nm @ 4000 rpm, 4
Manual Gears.

Tata Nano CNG Concept Car Summary:-

 * Name: Nano CNG Concept

* Model:
* Car Body Type: Hatchback
* Segment: A Segment
* Top Speed: 105
* 0 to 60: 8.00
* 0 to 100: 12.50

Tata Nano CNG Concept Car Specification: * Length: 3099 mm

* Width: 1495 mm
* Height: 1652 mm
* Seating Capacity: 4
* Tyre Size: 135/70 R12 155/65 T12
* Suspension: Independent McPherson Struts, Coil Spring
* Turning Circle: 4.00 mtrs.
* Boot Space: 80.00 ltrs.
* Steering: Power
* Brakes: Front Disk, Rear Drum
* Gears: 4 Manual
* Ground Clearance: 180.00 mm
* Fuel Tank: 15.00
* Kerb Weight: 635.00 kgs.
* Trip Meter: 2
Launch Date: As per our estimates - Nano CNG can be launched anytime during
Quarter - 2, May - June 2013 in India
Price: Tata Nano CNG can be priced in range of Rs. 1.85 Lacs - 2.49 Lacs

Tata Nano 800cc car launch In 2013-2014

It is shocking that Tatas dream car and the worlds cheapest car Tata Nano has
faced defeat in its own homeland. But the car maker is unwilling to face it and

thus is about to make three fresh attempts in order to make this car a real
success in India.

First will be the launch of the 800cc model and the next two will be addition of the
diesel and the CNG variants. Thus, the Tata Nano 800 will be competing head on
with the Maruti Alto 800 that has these days literally swept the entire entry level
car buyers to its side.

Now that Tata has decided to launch the 800cc Nano soon, it seems that there
will be now no reasons for people to deny buying this car. The Tata Nano 800
price is also expected to be around Rs 2.5 lakh and at this price the car will be
much more lucrative than the Alto 800 or the entry level Chevrolet Spark.

 It is three years now and the Nano still is trying to force Tata Motors to expand its
production capacity whereas other car makers go for capacity expansion even in
the first year of the launch of any new car. So what went wrong with the Nano?
But whatever happened to Nano is not good for Tata Motors.
In November the car sales have touched as low as 3500 units only and that is a
danger sign and thus the car maker has devised these three ways to transform
Nano from a low selling car to the highest selling car. First it was the poor mans
car title that did the damage and then some stray incidents of fire fueled the hate
for this car among the nave rich.

 Some myths about Nano

When Nano was introduced, it surprised everyone. It had so many features but
the cost was as low as Rs. 1 lakh. This was really amazing. Due to this, many
competitors, governments and others opposed Nano. Moreover, its not a new
thing that whenever a new concept is developed, people oppose. They find more
limitations then seeing the benefits. Following are some myths about Nano. But
these are then proved to be wrong.

Myth no 1

Nano is an unsafe car

The car has an all steel body.

It meets the mandatory Frontal Impact requirements.
It also meets the Side Impact requirements although they are not mandatory in
India.

Myth no 2

Nano will greatly increase the Pollution Level

The car is Bharat IV and Euro IV compliant although these norms, which are
stricter than the present Bharat III norms, are yet to be introduced.
It has lower carbon footprint, 20 mg / Km of Carbon Dioxide emission as
compared to 45mg / Km, emitted by most of the two wheelers.
Its Multi Port Fuel Injection system is controlled by an intelligent Bosch Engine
Management system which controls the combustion cycle precisely to ensure
compliance to all emission norms.

Myth no 3

Nano will struggle to perform

Although the car has 33 bops as the maximum horsepower it has a low kerb
weight of 550 Kg and so has a higher power-to weight ratio when compared to
many existing cars running on Indian roads.
The car has a matching acceleration to Maruti 800 and also a good top speed.
Although the manufacturers have estimated 90 Kms as the maximum speed the
car can go up to 105 Kms per hour top speed.

Myth no 4

Nano has very little leg room

Although the car is 8% smaller than Maruti 800 it has lot of extra leg room at front
as there is no engine compartment. This also leaves sufficient knee room at the
rear.
The car has a tall boy type design so there is lot of head space and also enough
Shoulder room.
The mono volume design and the wheels having been put at the corners have
freed up lot of in- cabin space and although the car may be registered as a foursetter, three slim adults can sit comfortably at the rear.

Myth no 5

Cheap means Uncomfortable

More comfortable than some of the cars selling at even twice the price. Leaves
sufficient knee room at the rear.
Easy to get in & out of the car because of perfect seat height from the ground.

 Suspension systems are good and the trailing arms with coil springs are not
found in cheap cars. Rear.

Myth no 6

Its very difficult for a rear - engine car to work.

Rear engines work in many cheap as well as expensive cars.

Auto-rickshaws at one end and Formula One cars on the other extreme all use
rear engines.
Maruti Omni too has a rear engine, under the seat and no one has been burnt
due to that.
Cooling is easier in Nano as compared to some vans and there are the air ducts
on either side behind the edge of the doors, which allow air to seep in for both
cooling & for intake.

Myth no 7

There is a shortage of storage space.

There is some storage space although not much.

The rear seat with parcel shelf folds to allow accommodating a large suitcase.
Small articles can be placed under the bonnet also.

Myth no 8

Cutting Corners is evident everywhere

Cost cutting is done by smart designing rather than taking out the essentials.
One wiper has been taken out but the functionality is intact. Wind shield washer
fluid jets are mounted on the wiper itself rather than the body.

 Wheels are held by three bolts instead of four.

On the contrary, MRF tubeless tyres and all Alumininium engine, have been
used, which are more expensive than conventional ones.

Comparison
between Nano and
Maruti Suzuki Alto
800

COMPARISON

BETWEENTATA

NANO V/S MARUTI SUZUKI ALTO 800

As we know the price of Nano car is much affordable for middle class people.

This car can be easily affordable by middle class people. In the Indian market it will
face only by one competitor that is Maruti SUZUKI ALTO 800, which produced by
Maruti udyog.


The country like India is aware of the hard fact that if one desires better fuel
efficiency and effortless driving on road; small cars are the best option. So from
leading automobile manufacturer Maruti Suzuki to home grown carmaker Tata
Motors, both have designed and offered best small cars to the country. And here
we are seeking to compare new Alto 800 from Maruti to Tata Nano2012, which
are two exclusive models in the country with quite a lot differences and exclusive
features but at the same time terrific pricing in order to attract entry-level car
buyers. Therefore in order to make the decision process easier for customers,
lets explore both the models New Alto 800 and Tata Nano and bring out the

exclusivity

of

these

two

amazing

small

cars.

Exteriors:-

All-new Alto 800 is truly adorable as it is bit boxy, taller, smarter and exquisite. It
is quite refreshing to look at from exteriors point of view with fresh designing and
trendier pattern. Extremely sporty in appearance, the new model Alto 800 has got
redesigned headlamps, tail lamps and brushed up structuring as it flaunts more
on the outside with:

- High mounted headlamps in petal design

Two part front grill

-Trendy Spoiler
-Wheel Arches
- Crystal Tail Lamps, etc

 Tata Nano 2012 is very cute to look at, especially with its exciting and catchy
color scheme from Rouge Red, Mojito Green, Sunshine Yellow, Meteor Silver to
Neon Rush, Papaya Orange, Pearl White, Champagne Gold, Aqua Blue and
Serene White. Nano 2012 also shows off:
- Body Color Bumpers & Door Handles
- Clear Lens Headlamps & Tail Lamps
- Tinted Glasses
- Tinted Windshield with intermittent washer and dual speed wipers, etc

Interiors:-

New Alto 800, being the most eagerly awaited car of this festive season comes
with some grand cabins that look plush and elegant. Smartly crafted model has
now got heightened leg and head room with newly crafted dashboard, improved
central console plus overall use of quality plastic material. Maruti Suzukis new
Alto 800 swanks:


- Bits of Silver Tracing in the Cabins
- Sleek Seating Arrangement
- Better Upholstery Design with New Shading, etc

The mini car Nano is superb from inside as compared to its older sibling. The
2012 version is quite refined and tasteful as the Nano is adorned with luxury
appeal along with several toned up interior designing. The Nano now comes with:
- Premium Beige Color Dashboard
- Upholstery in Premium Beige Fabric
- Trendier Comfortable Seating with new shade combination, etc

Engine, Specification & Performance:-

The newly arrived Alto 800 from the home of Maruti Suzuki is equipped with tried
and tested 3-cylinder, 800cc petrol engine borrowed from the older sibling Alto,
the best selling hatch in India. But at the same time, automaker has improved the
overall efficiency of the engine, which now fetches impressive power of 47.5Bhp
at 6000rpm and 69Nm of peak torque at 3500rpm. With powerful engine and
smarter plus quick gear shifting, the new Alto 800 is effective, terrific and
flawless.

Tata Nano 2012 captures its cruising capability from 2-cylinder, 624cc, MPFI
engine that delivers fine maximum power of 38 Ps at 5500 rpm and great torque
of 51 Nm at 4000 rpm. The engine comes mated to four-speed manual gearbox.
The mini hatch also gets Independent, Lower Wishbone, McPherson Strut with
gas filled dampers and anti-roll bar for suspension purpose for front power while
Independent, Semi Trailing arm with coil spring & gas filled shock absorbers for
the rear ones. The new Nano 2012 covers its 0-100km distance in 29.7 seconds.

Comfort and Convenience :-

The new small car Alto 800 from king of the Indian auto jungle, Maruti Suzuki
offers some very exciting features in the compact car that makes the ride more
comfortable and convenient. Few of them are listed below:

- Power Steering
- All Four Door Power Windows
- Air Conditioner/Heater
- Rear Headrest

- Front Cup Holder

- Glove Compartment

Tata Nano 2012 is too filled with ample of amazing comforting features such as
air conditioner, heater, front power windows, cabin lamp, map pocket of fabric,
front seat headrests, sun visor on driver and passenger side, driver seat with
slider, head lamp leveling, low fuel warning lamp etc. The top end version also
gets:
- Rear Seat Integral Headrests
- Passenger Side Seat with Recliner
- Rear Assist Grips
- Front Cup Holder
- Gear Shift Console, etc

Safety:-

Maruti Suzuki, the Japanese auto giant has equipped its newly launched Alto 800
with few of the significant safety features such as:
- Central Locking
- Outside Rear-View Mirrors
- Front Fog Lamps
- Safety Belts
- Driver Side Airbag

Tata Motor Nano 2012 from the Indian carmakers home has got good safety
lineaments like:
- Center High Mount Stop Lamp
- Laminated Windshield
- Door Lock on Driver Side
- Booster-assisted Brakes
- Front & Rear Seat Belts
- Additional Body Reinforcements
- Intrusion beam and radial

Mileage:-

 New Alto 800 (petrol) gives a mileage of 22.7kmpl and CNG version renders fuel
efficiency of 30.46 km/kg, according to ARAI certification.

The all new Tata Nano 2012 is more fuel efficient, offering a mileage of 25.4
kmpl, ARAI certified.

Price:-

With competitive pricing, the new Alto 800 (petrol) shows off a price tag of Rs.
2.44 lakh, while the CNG version comes with a price label of Rs. 3.56 lakh, exshowroom Delhi.

Tata Nano 2012 is available at a range between Rs. 1.27 lakh to Rs 1.96 lakh
(Ex-showroom New Delhi).

Verdict: -

Small cars are truly the top contenders of domestic auto market and one among
them is newly launched Alto 800 from the auto rulers stable, Maruti Suzuki. On
the contrary stands the peoples car Nano from Tata Motors that is still struggling
to make big in the market with few wonderful updates and facelifts. Though Nano
never able to pick up that top speed in the country, Alto 800 is the new contender
that is very sure of its success because of many great aspects and its crafted

platform based on bestseller Alto. Choice is all personal, which one to pick and
drive on busy Indian streets.

Price of Maruti Suzuki Alto 800 in major city of India Alto 800
(Figures in rupees)

Mumbai

2570

00

Delhi

2430

00

Bangalore

2580

00

Kolkata

2620

00

TATA
MARUTI
ALTO 800

Lucknow

2530

00

Jaipur

00

2510

NANO
SUZUKI

V/S

FEATURES OF TATA NANO COMPRAED TO MARUTI

SUZUKI ALTO 800

COST:

The dealer price of Maruti Suzuki Alto 800 varies from city to city. The dealer price
in Delhi is approximately2.43 lakh and the on road price is approximately 2.73
lakhs Indian rupees.
The dealer price of Nano is just 1.00 lakhs rupees and the road price is only 1.26
lakhs rupees.
So here we can put the equation 2 * Nano = 1* Maruti Suzuki Alto 800

ENGINE:

 Maruti Suzuki Alto 800: 796 cc

Tata Nano :624 cc (better fuel than Maruti Suzuki Alto 800)

ENGINE TYPE:

Maruti Suzuki Alto 800 petrol/CNG

Nano : petrol (diesel / CNG version will be later)

SEATING CAPACITY:

Maruti Suzuki Alto 800: 4+1 person

Nano: 4+1 person

FUEL TANK CAPACITY:

Maruti Suzuki 800 : 35 Lt (petrol)

Nano: 15 Lt.

WEIGHT

Maruti Suzuki Alto 800 more than 695 kg (gross weight is 1185 kg)
Nano more than 600 kg

TOP SPEED:

Maruti Suzuki Alto800 : 145 km/hr

Nano : 90 km /hr

SEGMENT:

Maruti Suzuki Alto 800 middle class people

Nano: lower and middle class people.


FUEL CONSUMPTION:
Maruti Suzuki ALTO 800: city 17.0 and highway 22.74km
Nano: city 22.2 km and highway 25.4 km

DIMENSIONS:

Maruti

Suzuki

Tata Nano

ALTO 800
Length

3.335

meters

3.1 meters

Width

(131.3 inch
1.440
meters

1.5 meters

Height

(56.7 inch)
(55.3 inches)

1.6 meters

BREAKS:
Maruti Suzuki Alto800: Front Disk, Rear Drum
Nano: Front Disk, Rear Drum

COLOURS

Maruti Suzuki Alto 800

Tata Nano:

The Nano are not much taller and broader as compared to Maruti Suzuki
Alto800 but it has 21 percent larger spaces in side but 8 percent short than
ALTO800.

Disadvantages of NANO vs. Maruti Suzuki

Alto 800
1. LPG/CNG/DIESAL version is Work In Progress.
2. Top Speed will be laser than Alto800.
3. Space for Language is less.

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

This chapter describes the methodology of the study. This project is based on
information collected from primary sources. After the detailed study, an attempt
has been made to present A STUDY OF NEW PRODUCT DEVLOPMENT
WITH TATA NANO AND COMPRATATIVE STUDY ON MARUTI SUZUKI ALTO
800. The data had been used to cover various aspects like consumers
preference and customers satisfaction regarding TATA NANO AND MARUTI
SUZUKI ALTO 800. In collecting requisite data and information regarding the
topic selected, I went to the residents of JAIPUR and collected the data.

Survey design:
The study is a cross sectional study because the data were collected at a single
point of time. For the purpose of present study a related sample of population
was selected on the basis of convenience.

Sample Size and Design:

A sample of 100 people was taken on the basis of convenience. The actual
consumers were contacted on the basis of random sampling.

 Research Instrument:
This work is carried out through self-administered questionnaires. The questions
included were open ended, dichotomous and offered multiple choices.

Research objectives

o To study about how a new product- Tata Nano was developed based on
marketing theory of new product development.

o To study about what made possible for Tata to develop and produce a car for just
Rs. One lakh.

o To study the objectives and target customers of Tatas one lakh car.

o To study and compare between Tata Nano and Maruti Suzuki Alto 800.

o To study on customers buying behavior and preferences and views about Tata
Nano and Maruti Suzuki Alto 800 by various methods of data collection.

Data Collection Methods

The success of any project or market survey depends heavily on the data
collection and analysis. It is necessary that the data collected is a reliable data in
order to achieve the research objective.
For research regarding the views of people about Tata Nano and its comparison
between Tata Nano and Maruti Suzuki ALTO 800 two types of data collection
methods were used.

Primary Data
Secondary Data

PRIMARY DATA:

Primary data is the data, which are fresh and collected for the first time, and are
original in character. There are various Primary Data Collection techniques,
which have helped in data gathering. This was collected through questioner.
Questionnaires are a popular means of collecting data, but are difficult to design
and often require many rewrites before an acceptable questionnaire is produced.

 Advantages:

Can be posted, e-mailed or faxed.

Wide geographic coverage.
Relatively cheap.
No prior arrangements are needed.
Avoids embarrassment on the part of the respondent.
Respondent can consider responses.
No interviewer bias.

Disadvantages:

Design problems.
Questions have to be relatively simple.
Time delay whilst waiting for responses to be returned.
Several reminders may be required.
Assumes no literacy problems.
No control over who completes it.
Not possible to give assistance if required.
Problems with incomplete questionnaires.

Points kept in mind while preparing the questioner

Liberal spacing
Length of the questioner is kept normal
Logical Order
Question are short, simple and to the point; all unnecessary

words are avoided

Close ended questions are asked so that its easy for the
respondent to fill the questioner and also easy to analysis
Sample population was selected on the basis of random
sampling method.

SECONDARY DATA:
Secondary data are those data, which have been already collected or published
for the purpose other than specific research need at hand. This data is simply
used up by the researcher for his purpose of collected data and its used for the
same purpose. The secondary data sources here in this project are:
Websites:
www.tatamotors.com,www.marutisuzuki.com,www.autocarindia.com,www.autobid
.in,www.overdrive.in,
Books:
Auto Bid Magazine, Overdrive Magazine, Autocarindia Magazine

DATA

ANALYSIS AND
INTERPRETAION

Various Results Of Analysis In The

Form Of Charts

% of people who are aware of tata nano

yes

no

3%

97%


The % of people who are aware of the Tatas new product Nano car is shown
with the help of pie chart.
o Here, blue color indicates that people are aware of Tata Nano
o And red color indicates the % of people who are not aware of Tata Nano.
While analyzing the chart, we can know that only 3% of the total sample
population is not aware about Tata Nano. This shows the great effect of media,
newspaper and launching of this product.

Preferences Of Different Age Group Regarding

Buying Of Nano.

8
7
6
5
yes

no

not sure

2
1

not sure

no
15-30

31-45

45-60

yes
above 60


This chart shows the preference of different age group to buy Tata nano when it
is launched.
Here on x- axis, no of respondents is given. And on y axis the age group is
given.
o Blue triangle indicates willingness to purchase Tata Nano.
o Red triangle indicates that the respondent is not willing to purchase it
o And green indicates that the respondent is not sure.
While analyzing this chart, we can see that the young generation is egar to buy
the product. While due to some misunderstandings about tatanano, the older
generation doesnt desire to buy it or are not sure about it.

Preferences Of The Respondents Regarding

Buying Of Maruti Suzuki Alto 800 And Tata Nano

Preferences for buying maruti suzuki alto 800 or tata nano

maruti suzuki alto 800

tata nano

This chart shows the preference of the respondent. The question asked in the
questioner was, if you were to buy one of the following, which would you prefer.
the options given were:
Maruti Alto800 Tata Nano by having a glance at the chart, we can see that
majority went for Tata Nano. Maruti Suzuki Alto 800 got very less votes. This
shows a tough time for Maruti Suzuki Alto800 in future.

Views about success of Nano

views on success of nano

success
not sure
50

50

no success

 The question asked here was, do you think Nano will be successful the options
given were yes no not sure.
Its very interesting to note here that none of the respondent said that Nano wont
be successful. As shown in the chart, the portion of purple color which shows
failure is not there at all.
But again everybody does not believe in its success. As seen from the chart,
50% of the respondent has a doubt about success of Nano.

Nano- A Peoples Car

!!!

30
Cost

Size

Looks

44

Innovation

14
12

The question asked here is, What is it that makes Nano a peoples car?
By analyzing the chart, we can say that people consider the cost factor the most
for Nano followed by the innovation. Even looks has got quite positive reply.
Nano is a product that is developed perfectly at minimum cost without sacrificing
the quality.

QUESTIONNAIRE

Que1. Which brand of Cars do you prefer?

Maruti Suzuki alto 800; 40%

Tata Nano; 60%

Interpretation:

 Tata Nano

60

Maruti Suzuki alto 800 40

60% peoples prefer Tata Nano while 40% prefer Maruti Suzuki alto 800.

Que2. Rank the brands of cars according to your preference? (1 for most
preferred)

2.5

1.5

tata Nano
Maruti Suzuki Alto 800

0.5

Interpretation:

Tata Nano

Maruti Suzuki Alto 800

Design

Mileage

Company Status

Resale Value

Que3. Which brand of a Car do you like to buy?

45%
55%

tata (other cars)

Maruti Suzuki Alto 800
(other cars)

Interpretation:

Tata (Other Cars) 45%

Maruti Suzuki Alto 800 (Other Cars) 55%

55% people like to buy Maruti brand and 45% like to buy Tata brand.

Que4. Which small car would you prefer to buy?

Maruti Suzuki Alto 800

.Tata NANO

Other..

20%

20%
Maruti Suzuki Alto 800
Tata NANO
60%

Other

Interpretation:

20% peopleprefer to buy Maruti Suzuki as a small car. And 60%prefer Tata Nano
as a small car. And remaining 20% people prefer other car.

Que5. Do you think NANO is people's car?

Yes

No

Cant say

5%

5%

Yes
No
90%

Can't say

Interpretation:

90% people says that nano is people car. 5%people say no. And remaining 5%
cants say.

Que6. Will Tata be able to maintain the price of nano in future if there is hike in
cost of raw materials?

Yes
No
Cant say

10%

30%
60%

yes
no
can't say

Interpretation:

60% people say yes that Tata be able to maintain the price of nano in future if
there is hike incost of raw materials. 30% say no. And remaining 10%cant say.

Que7. What are the factors considered by you to buy a Tata Nano car?

Price

Quality

Mileage


Comforts

10%
10%
PRICE
QUALITY

10%

MILEAGE
COMFORTS
70%

Interpretation:

For the above question, among the total number of participants from, 70% of the
participants answered that they buy Tata Nano Car for its price, 10% of them
answered that they buy Nano for its quality, 10% of the participants stated that
they buy Nano for its mileage and finally 10% of the participants stated that they
buy Nano for its comforts.

Que8. Which promotional offers attract you most?

15%
40%
Free Gifts
45%

Price Offers
Any Other

Interpretation:

Free gifts 40% Price Offer 45% any other 15%

40% attracts for free gifts, 45% attracts for price offer and 15% attract on any
other offer.

Que9.Which of these factors affects your purchase?

30%
45%

10%

15%

Advertisment
Suggestion from friends &
relatives
Attractive offers
brand Ambassadors

Advertisement

Suggestion from friends and relatives

Attractive Offers

Brand Ambassadors

Interpretation:

30% people buy cars while watching AD on T.V, 15% buying from suggestion of
friends & family, 10% buy cars by checking attractive offers and 45% buying cars
while checking their brand ambassador.

Que10. Which media of advertisement influence your purchase?

5%

10%
40%

15%

Television
newspaper
brouchers
hoarding

30%

Television

Hoarding

40%

Newspapers
5%

Display

display

30%

Brochures

15%

10%

Interpretation:

40% buying through TV adv., 30% buying through newspaper adv., 15% buying
through broachers, 5% buying through hording boards and 10% buying through
display ads.

Que11. How frequently do you purchase cars?

5% 5%
21%

26%

once in a year
once in a two years
once in a 5 years

42%

Once in a Year
Once In a Five Year
Once in a hole Life

once in a 10 years
once in a whole life

Once in a Two Years

Once in Ten Years

Interpretation:

5% Buyers purchase the car once in a Year. 21%Buyer purchase the car once in
a Two Years. 42% Buyers purchase the car in Once In a Five Year. 27% Buyers
purchase the car in once in ten Years. 5% Buyerspurchase the car in once ina
whole Life.

Que12. What according to you is the reasonable price of Cars?

5%

20%

10%
Below 1 Lakh
Once Lakh
35%

30%

1-2 Lakhs
2-3 Lakhs
Above 3 Lakhs

Below One Lakh 5%

2-3 Lakh 30%

One Lakh

10%

1-2 Lakh 35%

above 3 Lakh

20%

Interpretation:

5% prefer car prize below 1 Lakh, 10% prefer car prize Rs. 1 Lakh, 35% prefer
car prize between 1-2 Lakhs, 30% prefer car prize between 2-3 Lakhs and 20%
prefer car prize above 3 lakhs.

Que13. If your preferred brand is not available for repeat purchases then what
will you do?

30%

30%

Postpone your purchase

Switch over to other brand

40%

go to the other showroom

to search for your preffer
brand

Postpone your purchase

30%

Switch over to other brand

40%

Go to the other showroom to search for your preferred brand

30%

Interpretation:

30% people postpone their purchase while 40% switch over to another brand and
30% go to another showroom for their prefer brand car.

Que14. If another brand of the same product appears in the market, will you
prefer to stop? Buying this brand and buy the new brand?

15%

20%
No, not at all

35%

I may consider
30%

No, I shall not

can't say

No, not at all

20%

No, I shall not

35%

I may consider
cant say

30%
15%

Interpretation:

20% will not stop buying their brand while 30% while consider about this and
35% shall not change their brand and 15% cant say about this.

Que15. If you dont like to change to the new brand, then what are the reasons
for continuing to purchase the old brand?

PERSONAL DETAILS

Name:

Address:
Age:
Between 15-30
Between 45-60

Gender:

M/F

Phone Number:
Marital status:
Education:
Profession:

Between31-45
Above 60

Some Feedbacks
Questioner:

Based

On

Positive Response

I have one more angle to look at Nano. I think it is worlds most hyped about
gadget after the iPhone. Did I just say gadget. Well, yes Tata Nano is not just a
car; one can also look at it like an expensive gadget which also gives us mobility.
One of the very few cute looking gadgets that all us geeks will love, who would
generally be interested in stuff that is sleek and powerful. I am also hopeful that
Tata will launch FCV and alternative fuel cars soon.
I definitely would like to buy the car. Who would not want a good car for just
100000 Rs?
Its just cool. One should definitely buy it.
Cheap As it is, but very smart and sexy. I would defiantly buy it.
Congratulations to Mr. Rattan Tata. He did a real good job.

Negative Response

It is impossible to build a car at such a price. No one has been able to do it so far.
It is just not possible.
It will be more like a scooter with a roof. I am sure no one can make the car for
the cost of two bikes.
This car is another auto rickshaw. It will add a lot to the traffic on road.
It shall be a half car with no roof. I doubt if it will be able to go up the flyovers.
It may be an upgraded Auto-rickshaw with plastic body. It shall be a very unsafe
car as the very idea of 1 Lac car is too farfetched to be true.

 It shall never meet the emission norms. We shall choke on the poisonous
emissions from this car.

The disbelief kept piling up and up and was further compounded by the
competitors adding their own mite to the speculations.

Mixed Response

IT HAS NOT BEEN DONE EVER. Even the nearest car is double the cost. Let us
see what Mr. Tata can do to maintain the price line.
I am not very convinced but would definitely go for it if it is safe.
I hope I can take my family of 4 in this car. I wish Tata's make this dream a reality.
I know the talk is that it is a myth. However miracles do happen. Let us wait and
watch.
The reaction was a mixed one. People wished it to be true but were very cautious
about expressing their optimism.

Conclusion
MY OPINION

After the study of various aspects I found that

Nano Car Is Definitely Not For:-

Someone looking for better performance

Someone who is looking to impress
Someone who want to speed trial on Sunday
Someone who is looking for long drives.

But Nano Car Is Defiantly For

Someone who is looking to buy a car but cannot afford much price.
A students who want to go college, tuition instead of bike etc.
Someone who depends on second hand car.
For a house wife who can buy a car with her own savings.
Someone who depends on scooter.
So Nano is not a basically a luxury cars but it can fulfilled the all capacity for

middle class people.

Impact Of Tata Nano On Life Of Common Man

 In India every one can afford a Nano, just as we buy any electronic appliances
for a home uses.
Decrease in price of second hand car.
High traffic on roads due to sale of exceeds car on roads.
Increase in loan on car installments.

And finally Nano is definitely better than Maruti Suzuki Alto 800. Tata has
succeeded in value engineering of the product and its great success for Tatas. Its
something on which India can feel proud of. Nano has been developed effectively.

Appendix

QUESTIONNAIRE

PERSONAL DETAILS

 Name:

Address:
Age:
Between 15-30
Between 45-60

Gender:

Between31-45
Above 60

M/F

Phone Number:
Marital status:
Education:
Profession:

Dear Respondent

I, DIWAKAR PALIWAL student of MBA, APEX INSTITUTE OF MANAGEMENT

&SCIENCE, JAIPUR, is working on project NEW PRODUCT DEVELOPMENT
WITH TATA NANO AND COMPARITIVE SYUDY ON MARUTI SUZUKI ALTO
800 The following questions are the main instrument of my survey. So please
give your opinion up to the best of your knowledge.

Que1. Which brand of Cars do you prefer?

Maruti Suzuki alto 800

Tata Nano

Que2. Rank the brands of cars according to your preference? (TATA NANO V/S
MARUTI SUZUKI ALTO 800) (1 for most preferred)?

Design
Mileage
Company Status

Resale Value

Que3. Which brand of a Car do you like to buy?

Tata (Other Cars)

Maruti Suzuki Alto 800 (Other Cars)

Que4. Which small car would you prefer to buy?

Maruti Suzuki Alto 800

.Tata NANO

Other..

Que5. Do you think NANO is people's car?

Yes

No

Cant say

Que6. Will Tata be able to maintain the price of nano in future if there is hike in
cost of raw materials?


Yes
No
Cant say

Que7. What are the factors considered by you to buy a Tata Nano car?

Price

Quality

Mileage

Comforts

Que8. Which promotional offers attract you most?

Free gifts

Price Offer

any other

Que9.Which of these factors affects your purchase?

Advertisement

Suggestion from friends and relatives

Attractive Offers

Brand Ambassadors

Que10. Which media of advertisement influence your purchase?

Television

Newspapers

Brochures

Hoarding

Display

Que11. How frequently do you purchase cars?

Once in a Year

Once in a Two Years

Once In a Five Year

Once in Ten Years

Once in a hole Life

Que12. What according to you is the reasonable price of Cars?

Below One Lakh

One Lakh

1-2 Lakhs

2-3 Lakhs

Above 3 Lakhs

 Que13. If your preferred brand is not available for repeat purchases then what
will you
do?

Postpone your purchase

Switch over to other brand

Go to the other showroom to search for your preferred brand

Que14. If another brand of the same product appears in the market, will you
prefer to stop? Buying this brand and buy the new brand?

No, not at all

I may consider

No, I shall not

cant say

Que15. If you dont like to change to the new brand, then what are the reasons
for continuing to purchase the old brand?

BIBLIOGRAPHY

Books -:

Kotler

Philip

Marketing

Management,

millennium

edition,

prentice

Hall

inc.Publication.
Kothari C.R.Research Methology, 3rd Edition,New age Publication
Sharma D.D.Marketing Research,3rdEdition,Publication Sultan Chand & son

Publication

Magazines-:

Auto-India
Auto-Car
Auto Bid Magazine
Overdrive Magazine
Autocarindia Magazine

Websites -:

http://www.wikipedia.com/
http://www.tatamotors.com/
http://www.maruti.com/