New Delhi: Dwindling sales of Nano, coupled with recent incidents of the car going up in flames, have led Tata Motors seek professional help to fix the myriad problems.
Industry sources told FE that the company is roping in global consultancy firm Accenture to review issues pertaining to production, quality standards and supply chain management. Accenture would also identify new growth markets for Tata Motors to resurrect brand Nano and push its sales.
"The company would have to re-look at its strategy from scratch for which they are seeking professional help," an industry source said, adding that over the past one month senior officials have been in close touch with Accenture division heads to give steam to a new strategy and identify possible production-related loopholes. "The aim is to review the overall processes within Tata Motors and compare it with its rivals," the source said. However, when contacted a Tata Motors spokesperson denied any such move by the company.
Tata Nano has seen total sales nosedive from 9,000 units in July to just 509 units in November, down 85% from the previous year.
"The company is fighting a battle on two fronts -- engineering and marketing. Today, the nature of the market is such that if the company takes too long to fix the problem, it could run the risk of losing prospective customers," said an auto analyst.
Tata Motors has explained the declining sales of Nano to the fact that it is still in the process of opening up its dealerships on a pan-India level. "All these initiatives will be done across the country, as we expand open sales. Sales will increase, as we go on covering states," the company has said.
As reported by FE earlier, top Tata Motors executives would be meeting later this month to devise a new plan to become a global automaker. The ones slated to attend the meet would include vice-chairman Ravi Kant, group CEO Carl-Peter Forster and managing director (India Operations) PM Telang.
Source: Agencies
Showing posts with label tata motors. Show all posts
Showing posts with label tata motors. Show all posts
TATA NANO THE Fifty Ugliest Cars of the Past 50 Years
Tata Motors has won kudos for its low-cost Nano, the world’s cheapest car. Here’s one honor the Indian company won’t want to trumpet: According to my BusinessWeek colleague Damian Joseph, the $2,500 Nano is one of the world’s 50 ugliest cars over the past half-century. “Admittedly, appearance wasn’t a design priority for the Nano, which is intended for Indians too poor to buy a regular car,” Joseph writes. “But that doesn’t excuse its egg-like stylings. Even the snub hood and tiny tires can’t draw the eye from the car’s domed top.”
Meanwhile, Tata Motors has other Nano problems. Check out the piece on BusinessWeek’s Asia Channel now by Mehul Srivastava, Ian Rowley and Moon Ihlwan. As they write in the BW story, Tata “may have to work hard to fight perceptions created by being a cheap, made-in-India car in Western markets obsessed with comfort and safety. Since September three Nanos across the country developed a short circuit that caused fire-retardant plastic parts to smoke up from the heat. Tata says it will carry out a preemptive audit of cars sold and in inventory as a precautionary measure, and it has ruled out a recall, choosing instead to replace the supplier for that specific part, called the combination switch.” Three problem cars out of 7,500 sold does not a crisis make. Problem is, when you hype your product as a People’s Car that’s the world’s cheapest, three might be all it takes to create jitters in the marketplace. Sure enough, auto blog GM Inside News already has a comparison between the Nano and the infamous Ford Pinto.
Tata should move fast to defuse the problem. CarTradeIndia.com, an auto industry website, reports today that a Tata spokesman says there have not been “actual cases of Nano catching fires but only smoke due to short circuit around the switch area and the melting of the plastic.” As damage-control strategies go, “No fire, just smoke” probably isn’t going to cut it.
Source: Business News
Meanwhile, Tata Motors has other Nano problems. Check out the piece on BusinessWeek’s Asia Channel now by Mehul Srivastava, Ian Rowley and Moon Ihlwan. As they write in the BW story, Tata “may have to work hard to fight perceptions created by being a cheap, made-in-India car in Western markets obsessed with comfort and safety. Since September three Nanos across the country developed a short circuit that caused fire-retardant plastic parts to smoke up from the heat. Tata says it will carry out a preemptive audit of cars sold and in inventory as a precautionary measure, and it has ruled out a recall, choosing instead to replace the supplier for that specific part, called the combination switch.” Three problem cars out of 7,500 sold does not a crisis make. Problem is, when you hype your product as a People’s Car that’s the world’s cheapest, three might be all it takes to create jitters in the marketplace. Sure enough, auto blog GM Inside News already has a comparison between the Nano and the infamous Ford Pinto.
Tata should move fast to defuse the problem. CarTradeIndia.com, an auto industry website, reports today that a Tata spokesman says there have not been “actual cases of Nano catching fires but only smoke due to short circuit around the switch area and the melting of the plastic.” As damage-control strategies go, “No fire, just smoke” probably isn’t going to cut it.
Source: Business News
Tata Nano has passed its first basic EC structural safety tests
The diminutive Tata Nano has passed its first basic EC structural safety tests which will becomes Indian structural safety standard in 2012. The tests were conducted at UK’s MIRA test center under the supervision of Nic Fasci, type approval engineer from Britain’s Vehicle Certification Authority.
Two slightly modified Tata Nano cars flown in from India to the MIRA test center and were subjected to a 50 kmph side impact and a 56 kmph offset frontal impact test, the minimum required for any vehicle to be sold in Europe.
Tata Engineering chief Clive Hickman said the aim of the tests was to show that with basic modifications the present car could meet the existing safety regulations and set the vehicle on course for a European version to be ready by 2012.
Video: Tata Nano Crash TestTata Motors said it was “delighted but not surprised” that its Nano subcompact passed European front- and side-impact crash tests last week.
Tata Motors is intending to subject the Nano’s European version to NCAP testing and is confident of getting a 4-Star safety rating.
The modifications to the Tata Nano included extra foam added to the cant rail, a reinforced longitudinal structure and some added strength behind the front bumper and in the front doors.
“It looks no different from other cars doing this test. It’s a good crash.” said Nic Fasci, approval engineer from Britian Vehicle Certificaion Authority who certified the tests.
The crash tests included a 40 percent offset and a 56km/h (35 m.p.h.) frontal impact, and are tougher than those that exist in India — currently the Nano’s only market — but they are due to be adopted in India in three years’ time.
Electric car form TATA Costly then Tata Nano - says rathan tata on global warming day
Indian conglomerate Tata Group Chairman Ratan Tata has said that Tata Motors will have an electric car in the market by September this year.
"We will have an electric car in the market in September," Tata was quoted as saying by Cornell University on its micro-blogging feed on Twitter. Tata is also a Cornell trustee.
He talked about the electric car at the Cornell Global Forum on Sustainable Global Enterprise organised by the university.
In 2008, Ratan Tata speaking at the Annual General Meeting of Tata Motors said that the company was developing an electric car.
Foreign media also reported quoting Tata at the forum that Tata Nano, dubbed as the world's cheapest car, is expected to be available in the US in the next two years.
The much-awaited Nano was commercially launched in March in India and is expected to hit the roads soon.
According to the university website, the Tata Education and Development Trust committed USD 50 million to Cornell in October 2008 to establish the Tata Scholarship Fund for Students from India and the Tata-Cornell Initiative in Agriculture and Nutrition, intended to improve the lives and livelihoods of India's rural poor.
At Tata Motors' annual general meeting this week chairman Ratan Tata told shareholders about an electric car partnership project with Norway, with the car to launch in Norway within the next 12 months, according to Swedish weekly Ny Teknik, and India afterward. Calcutta Telegraph said Tata will use its Indica platform for the development of its electric car, not the no-frills, $2,500 Nano, which is scheduled to start rolling off production lines in September. Tata is currently working on five prototypes of electric vehicles, the Telegraph said, with lithium-ion batteries and an approximate range of 200 kilometers. Indica is a full-size highway-ready car, but Tata hasn't said whether the Indica-based EV will also be full-sized or an NEV (neighborhood electric vehicle), or given price signals.
Scandinavia cornering electric vehicle market?
Tata's electric car is supposed to be initially assembled in Norway, which seems a bit strange given the country's high wages compared to India. On the other hand, with THINK and the Kewet Buddy under production and Miljøbil Gronland working to continually beef up the infrastructure of fast recharging stations, Norway has some accumulated EV competence.
Reva electric car's strong sales
Tata earlier partnered with Chrysler's electric vehicle unit Global Electric Motorcars (GEM) to develop and market an electric version of its light commercial vehicle Ace for sale in the United States, according to Germany's Spiegel Magazine. Spiegel also said India's electric car maker Reva has sold 2,500 units, including 1,000 in the UK, and is hiking capacity to 30,000 units by December from 6,000 now.
Tata's mystery electric car partner
THINK thus far gave no indication that it was Tata's EV partner, nor did Kewet, according to Ny Teknik. But Miljøbil Gronland, though refusing to give any details, did say it "has a project with India" according to Ny Teknik. Owned by government-owned Norsk Hydro, Miljøbil Gronland has a fleet of different EVs and hybrids that it leases to Norwegian consumers.
"We will have an electric car in the market in September," Tata was quoted as saying by Cornell University on its micro-blogging feed on Twitter. Tata is also a Cornell trustee.
He talked about the electric car at the Cornell Global Forum on Sustainable Global Enterprise organised by the university.
In 2008, Ratan Tata speaking at the Annual General Meeting of Tata Motors said that the company was developing an electric car.
Foreign media also reported quoting Tata at the forum that Tata Nano, dubbed as the world's cheapest car, is expected to be available in the US in the next two years.
The much-awaited Nano was commercially launched in March in India and is expected to hit the roads soon.
According to the university website, the Tata Education and Development Trust committed USD 50 million to Cornell in October 2008 to establish the Tata Scholarship Fund for Students from India and the Tata-Cornell Initiative in Agriculture and Nutrition, intended to improve the lives and livelihoods of India's rural poor.
At Tata Motors' annual general meeting this week chairman Ratan Tata told shareholders about an electric car partnership project with Norway, with the car to launch in Norway within the next 12 months, according to Swedish weekly Ny Teknik, and India afterward. Calcutta Telegraph said Tata will use its Indica platform for the development of its electric car, not the no-frills, $2,500 Nano, which is scheduled to start rolling off production lines in September. Tata is currently working on five prototypes of electric vehicles, the Telegraph said, with lithium-ion batteries and an approximate range of 200 kilometers. Indica is a full-size highway-ready car, but Tata hasn't said whether the Indica-based EV will also be full-sized or an NEV (neighborhood electric vehicle), or given price signals.
Scandinavia cornering electric vehicle market?
Tata's electric car is supposed to be initially assembled in Norway, which seems a bit strange given the country's high wages compared to India. On the other hand, with THINK and the Kewet Buddy under production and Miljøbil Gronland working to continually beef up the infrastructure of fast recharging stations, Norway has some accumulated EV competence.
Reva electric car's strong sales
Tata earlier partnered with Chrysler's electric vehicle unit Global Electric Motorcars (GEM) to develop and market an electric version of its light commercial vehicle Ace for sale in the United States, according to Germany's Spiegel Magazine. Spiegel also said India's electric car maker Reva has sold 2,500 units, including 1,000 in the UK, and is hiking capacity to 30,000 units by December from 6,000 now.
Tata's mystery electric car partner
THINK thus far gave no indication that it was Tata's EV partner, nor did Kewet, according to Ny Teknik. But Miljøbil Gronland, though refusing to give any details, did say it "has a project with India" according to Ny Teknik. Owned by government-owned Norsk Hydro, Miljøbil Gronland has a fleet of different EVs and hybrids that it leases to Norwegian consumers.
Bookings for Tata's 'Nano' house starts on May 11th
Bookings for Tata's low-cost houses - that will come for as low as Rs 4 lakh - starts on Monday.
The initial booking amount is Rs 10,000 and booking application forms are available at SBI branches. Bookings can be made through bank pay order at selected branches of SBI bank across Mumbai. Applicants can purchase the application form booklet at Rs 200.
Bookings have to be made in the next 20 days and the first list and the waiting list is expected 15 days after the final booking day.
Tata Housing, a subsidiary of Tata Sons, launched its low-cost housing initiative - the Shubh Griha project - on Wednesday. The company plans to build apartments that will be priced at around Rs 4 to Rs 7 lakh.
The first Shubh Griha township will be launched at Boisar in Mumbai.
Tata Housing has tied up with SBI and HDFC to help potential buyers with finance options.
The initial booking amount is Rs 10,000 and booking application forms are available at SBI branches. Bookings can be made through bank pay order at selected branches of SBI bank across Mumbai. Applicants can purchase the application form booklet at Rs 200.
Bookings have to be made in the next 20 days and the first list and the waiting list is expected 15 days after the final booking day.
Tata Housing, a subsidiary of Tata Sons, launched its low-cost housing initiative - the Shubh Griha project - on Wednesday. The company plans to build apartments that will be priced at around Rs 4 to Rs 7 lakh.
The first Shubh Griha township will be launched at Boisar in Mumbai.
Tata Housing has tied up with SBI and HDFC to help potential buyers with finance options.
Tata Motors Denies Nano Recall
Tata Nano never ceased to hit headlines ever since Ratan Tata conceived the idea of making a one lakh car. Wednesday’s media reports that Tata is recalling the Nanos in the wake of some of them turning into fireballs raised many eyebrows.
However, Tata has denied any such recalls saying “the Tata Nano is a safe car with a robust design, state-of-the-art components and is built with uncompromising attention to quality in all aspects. This has been re-established through a second analysis, conducted during the months of September and October 2010. “
The company has reassured the customers that there are no generic defects in the Tata Nano.
Anyways, Tata is not taking the incidents of Nanos catching fire lightly. They have decided to make the car even more reliable by providing additional protection in the exhaust system and the electrical system.
As of October 2010, Tata has delivered over 70,000 Tata Nano cars and about 85% customers are said to be satisfied with the car.
However, Tata has denied any such recalls saying “the Tata Nano is a safe car with a robust design, state-of-the-art components and is built with uncompromising attention to quality in all aspects. This has been re-established through a second analysis, conducted during the months of September and October 2010. “
The company has reassured the customers that there are no generic defects in the Tata Nano.
Anyways, Tata is not taking the incidents of Nanos catching fire lightly. They have decided to make the car even more reliable by providing additional protection in the exhaust system and the electrical system.
As of October 2010, Tata has delivered over 70,000 Tata Nano cars and about 85% customers are said to be satisfied with the car.
Learning from Tata's Nano for Western executives
The breakthrough innovations of the $2,500 Nano car carry a lot of important lessons for Western executives
The announcement last month by Tata Motors of its newest car, the Nano, was revealing on many levels. The announcement generated extensive coverage and commentary, but just about everyone missed the Nano's real significance, which goes far beyond the car itself.
But, O.K., let's start with the car itself-particularly the price. At about $2,500 retail, the Nano is the most inexpensive car in the world. Its closest competitor, the Maruti 800, made in India by Maruti Udyog, sells for roughly twice as much. To put this in perspective, the price of the entire Nano car is roughly equivalent to the price of a DVD player option in a luxury Western car. The low price point has left other auto companies scrambling to catch up.
Thinking Outside the Patent Box
How could Tata Motors make a car so inexpensively? It started by looking at everything from scratch, applying what some analysts have described as "Ghandian engineering" principles-deep frugality with a willingness to challenge conventional wisdom. A lot of features that Western consumers take for granted-air conditioning, power brakes, radios, etc.-are missing from the entry-level model.
More fundamentally, the engineers worked to do more with less. The car is smaller in overall dimensions than the Maruti, but it offers about 20% more seating capacity as a result of design choices such as putting the wheels at the extreme edges of the car. The Nano is also much lighter than comparable models as a result of efforts to reduce the amount of steel in the car (including the use of an aluminum engine) and the use of lightweight steel where possible. The car currently meets all Indian emission, pollution, and safety standards, though it only attains a maximum speed of about 65 mph. The fuel efficiency is attractive-50 miles to the gallon.
Hearing all this, many Western executives doubt that this new car represents real innovation. Too often, when they think of innovation, they focus on product innovation using breakthrough technologies; often, specifically, on patents. Tata Motors has filed for 34 patents associated with the design of the Nano, which contrasts with the roughly 280 patents awarded to General Motors (GM) every year. Admittedly that figure tallies all of GM's research efforts, but if innovation is measured only in terms of patents, no wonder the Nano is not of much interest to Western executives. Measuring progress solely by patent creation misses a key dimension of innovation: Some of the most valuable innovations take existing, patented components and remix them in ways that more effectively serve the needs of large numbers of customers.
A Modular Design Revolution
But even this broader perspective fails to capture other significant dimensions of innovation. In fact, Tata Motors itself did not draw a lot of attention to what is perhaps the most innovative aspect of the Nano: its modular design. The Nano is constructed of components that can be built and shipped separately to be assembled in a variety of locations. In effect, the Nano is being sold in kits that are distributed, assembled, and serviced by local entrepreneurs.
As Ratan Tata, chairman of the Tata group of companies, observed in an interview with The Times of London: "A bunch of entrepreneurs could establish an assembly operation and Tata Motors would train their people, would oversee their quality assurance and they would become satellite assembly operations for us. So we would create entrepreneurs across the country that would produce the car. We would produce the mass items and ship it to them as kits. That is my idea of dispersing wealth. The service person would be like an insurance agent who would be trained, have a cell phone and scooter and would be assigned to a set of customers."
In fact, Tata envisions going even further, providing the tools for local mechanics to assemble the car in existing auto shops or even in new garages created to cater to remote rural customers. With the exception of Manjeet Kripalani, BusinessWeek's India bureau chief, few have focused on this breakthrough element of the Nano innovation (BusinessWeek.com, 1/10/08).
This is part of a broader pattern of innovation emerging in India in a variety of markets, ranging from diesel engines and agricultural products to financial services. While most of the companies pursuing this type of innovation are Indian, the U.S. engineering firm, Cummins (CMI) demonstrates that Western companies can also harness this approach and apply it effectively. In 2000 Cummins designed innovative "gensets" (generation sets) to enter the lower end of the power generator market in India. These modular sets were explicitly designed to lower distribution costs and make it easy for distributors and customers to tailor the product for highly variable customer environments. Using this approach, Cummins captured a leading position in the Indian market and now actively exports these new products to Africa, Latin America, and the Middle East.
"Open Distribution" Innovation
We have called this "open distribution" innovation because it mobilizes large numbers of third parties to reach remote rural consumers, tailor the products and services to more effectively serve their needs, and add value to the core product or service through ancillary services. Three innovations in products and processes come together to support "open distribution:"
o increased modularity (both in products and processes)
o aggressive leveraging of existing third-party, often noncommercial, institutions in rural areas to more effectively reach target customers
o creative use of information technology, carefully integrated with social institutions, to encourage use and deliver even greater value.
Modular designs combined with creative leverage of local third-party institutions help participants to get better faster. Companies such as Tata and Cummins are going far beyond "customer co-creation" in the narrow sense of soliciting isolated ideas from customers. Instead, they are building long-term personal relationships with customers, enriched by the specialized capabilities of broad networks of third parties that generate much deeper insight into customer needs and afford opportunities to tailor value.
Such innovations are quite different from those in the retail distribution systems pioneered by companies such as Dell (DELL) and the leading big-box retailers. These U.S. companies developed completely self-contained and highly standardized facilities and services for customers. But the open-architecture approach pioneered by Indian companies may offer much greater opportunity to deliver more tailored value to customers than the closed-architecture U.S. approach. The techniques initially developed to reach poor and rural customers may have even greater potential when used to reach highly demanding, affluent, urban customers in Western economies.
Welcoming Users Back into the Design Loop
The Tata Motors/Nano approach contrasts with the strategy of most other manufacturers. For more established automakers each new model represents an advance in tight integration, with more and more of the functionality deeply embedded in electronics that truly represent a "black box" to the customer. The days of customizing cars to personalize them and push their performance limits are rapidly receding into distant memory for the average customer. Yet, as Kathleen Franz, makes clear in her wonderful book, Tinkering: Consumers Reinvent the Early Automobile, it was the open design of early automobile models that blurred the lines between consumption and invention and led to a wave of innovations that were later embraced by the auto industry.
What are the broader lessons that Western executives should learn from this innovation story?
Emerging markets are a fertile ground for innovation. The challenge of reaching dispersed, low-income consumers in emerging markets often spurs significant innovation. Western executives should be careful about compartmentalizing the impact of these innovations on the edge of the global economy. As we suggested in Innovation Blowback, these innovations will become the basis for "attacker" strategies that can be used to challenge incumbents in more developed economies. What's initially on the edge soon comes to the core.
o Find ways to help customers and others on the edge to tinker with your products. Modular and open product designs help engage large numbers of motivated users in tailoring and pushing the performance boundaries of your products, leading to significant insight into unmet customer needs and creative approaches to addressing those needs.
o Pay attention to institutional innovation. Western executives often become too narrowly focused on product or process innovation. Far higher returns may come from investing in institutional innovation-redefining the roles and relationships that bring together independent entities to deliver more value to the market. Tata is innovating in all three dimensions simultaneously.
o Rethink distribution models. In our relentless quest for operating efficiency, we have gone for more standardization and fewer business partners in our efforts to reach customers. As customers gain more power, they will demand more tailoring and value-added service to meet their needs. Companies that innovate on this dimension are likely to be richly rewarded.
John Hagel and John Seely Brown are co-chairman and independent co-chairman, respectively, of the Center for Edge Innovation, a part of Deloitte & Touche USA LLP. John Hagel writes a blog at Edge Perspectives .
The announcement last month by Tata Motors of its newest car, the Nano, was revealing on many levels. The announcement generated extensive coverage and commentary, but just about everyone missed the Nano's real significance, which goes far beyond the car itself.
But, O.K., let's start with the car itself-particularly the price. At about $2,500 retail, the Nano is the most inexpensive car in the world. Its closest competitor, the Maruti 800, made in India by Maruti Udyog, sells for roughly twice as much. To put this in perspective, the price of the entire Nano car is roughly equivalent to the price of a DVD player option in a luxury Western car. The low price point has left other auto companies scrambling to catch up.
Thinking Outside the Patent Box
How could Tata Motors make a car so inexpensively? It started by looking at everything from scratch, applying what some analysts have described as "Ghandian engineering" principles-deep frugality with a willingness to challenge conventional wisdom. A lot of features that Western consumers take for granted-air conditioning, power brakes, radios, etc.-are missing from the entry-level model.
More fundamentally, the engineers worked to do more with less. The car is smaller in overall dimensions than the Maruti, but it offers about 20% more seating capacity as a result of design choices such as putting the wheels at the extreme edges of the car. The Nano is also much lighter than comparable models as a result of efforts to reduce the amount of steel in the car (including the use of an aluminum engine) and the use of lightweight steel where possible. The car currently meets all Indian emission, pollution, and safety standards, though it only attains a maximum speed of about 65 mph. The fuel efficiency is attractive-50 miles to the gallon.
Hearing all this, many Western executives doubt that this new car represents real innovation. Too often, when they think of innovation, they focus on product innovation using breakthrough technologies; often, specifically, on patents. Tata Motors has filed for 34 patents associated with the design of the Nano, which contrasts with the roughly 280 patents awarded to General Motors (GM) every year. Admittedly that figure tallies all of GM's research efforts, but if innovation is measured only in terms of patents, no wonder the Nano is not of much interest to Western executives. Measuring progress solely by patent creation misses a key dimension of innovation: Some of the most valuable innovations take existing, patented components and remix them in ways that more effectively serve the needs of large numbers of customers.
A Modular Design Revolution
But even this broader perspective fails to capture other significant dimensions of innovation. In fact, Tata Motors itself did not draw a lot of attention to what is perhaps the most innovative aspect of the Nano: its modular design. The Nano is constructed of components that can be built and shipped separately to be assembled in a variety of locations. In effect, the Nano is being sold in kits that are distributed, assembled, and serviced by local entrepreneurs.
As Ratan Tata, chairman of the Tata group of companies, observed in an interview with The Times of London: "A bunch of entrepreneurs could establish an assembly operation and Tata Motors would train their people, would oversee their quality assurance and they would become satellite assembly operations for us. So we would create entrepreneurs across the country that would produce the car. We would produce the mass items and ship it to them as kits. That is my idea of dispersing wealth. The service person would be like an insurance agent who would be trained, have a cell phone and scooter and would be assigned to a set of customers."
In fact, Tata envisions going even further, providing the tools for local mechanics to assemble the car in existing auto shops or even in new garages created to cater to remote rural customers. With the exception of Manjeet Kripalani, BusinessWeek's India bureau chief, few have focused on this breakthrough element of the Nano innovation (BusinessWeek.com, 1/10/08).
This is part of a broader pattern of innovation emerging in India in a variety of markets, ranging from diesel engines and agricultural products to financial services. While most of the companies pursuing this type of innovation are Indian, the U.S. engineering firm, Cummins (CMI) demonstrates that Western companies can also harness this approach and apply it effectively. In 2000 Cummins designed innovative "gensets" (generation sets) to enter the lower end of the power generator market in India. These modular sets were explicitly designed to lower distribution costs and make it easy for distributors and customers to tailor the product for highly variable customer environments. Using this approach, Cummins captured a leading position in the Indian market and now actively exports these new products to Africa, Latin America, and the Middle East.
"Open Distribution" Innovation
We have called this "open distribution" innovation because it mobilizes large numbers of third parties to reach remote rural consumers, tailor the products and services to more effectively serve their needs, and add value to the core product or service through ancillary services. Three innovations in products and processes come together to support "open distribution:"
o increased modularity (both in products and processes)
o aggressive leveraging of existing third-party, often noncommercial, institutions in rural areas to more effectively reach target customers
o creative use of information technology, carefully integrated with social institutions, to encourage use and deliver even greater value.
Modular designs combined with creative leverage of local third-party institutions help participants to get better faster. Companies such as Tata and Cummins are going far beyond "customer co-creation" in the narrow sense of soliciting isolated ideas from customers. Instead, they are building long-term personal relationships with customers, enriched by the specialized capabilities of broad networks of third parties that generate much deeper insight into customer needs and afford opportunities to tailor value.
Such innovations are quite different from those in the retail distribution systems pioneered by companies such as Dell (DELL) and the leading big-box retailers. These U.S. companies developed completely self-contained and highly standardized facilities and services for customers. But the open-architecture approach pioneered by Indian companies may offer much greater opportunity to deliver more tailored value to customers than the closed-architecture U.S. approach. The techniques initially developed to reach poor and rural customers may have even greater potential when used to reach highly demanding, affluent, urban customers in Western economies.
Welcoming Users Back into the Design Loop
The Tata Motors/Nano approach contrasts with the strategy of most other manufacturers. For more established automakers each new model represents an advance in tight integration, with more and more of the functionality deeply embedded in electronics that truly represent a "black box" to the customer. The days of customizing cars to personalize them and push their performance limits are rapidly receding into distant memory for the average customer. Yet, as Kathleen Franz, makes clear in her wonderful book, Tinkering: Consumers Reinvent the Early Automobile, it was the open design of early automobile models that blurred the lines between consumption and invention and led to a wave of innovations that were later embraced by the auto industry.
What are the broader lessons that Western executives should learn from this innovation story?
Emerging markets are a fertile ground for innovation. The challenge of reaching dispersed, low-income consumers in emerging markets often spurs significant innovation. Western executives should be careful about compartmentalizing the impact of these innovations on the edge of the global economy. As we suggested in Innovation Blowback, these innovations will become the basis for "attacker" strategies that can be used to challenge incumbents in more developed economies. What's initially on the edge soon comes to the core.
o Find ways to help customers and others on the edge to tinker with your products. Modular and open product designs help engage large numbers of motivated users in tailoring and pushing the performance boundaries of your products, leading to significant insight into unmet customer needs and creative approaches to addressing those needs.
o Pay attention to institutional innovation. Western executives often become too narrowly focused on product or process innovation. Far higher returns may come from investing in institutional innovation-redefining the roles and relationships that bring together independent entities to deliver more value to the market. Tata is innovating in all three dimensions simultaneously.
o Rethink distribution models. In our relentless quest for operating efficiency, we have gone for more standardization and fewer business partners in our efforts to reach customers. As customers gain more power, they will demand more tailoring and value-added service to meet their needs. Companies that innovate on this dimension are likely to be richly rewarded.
John Hagel and John Seely Brown are co-chairman and independent co-chairman, respectively, of the Center for Edge Innovation, a part of Deloitte & Touche USA LLP. John Hagel writes a blog at Edge Perspectives .
Nano fetches premium in used-car market
Second hand demand entirely for the top-end LX variant Barely two months after the Tata group chief Ratan Tata handed over the keys of the Nano to its first buyer, the world’s cheapest car has already made its way to the used-car market and is selling at a Rs 25,000 to Rs 35,000 premium, 18 to 20 per cent more than the booking price.
Used car dealers say limited allotments and long waiting periods are the chief reasons for these premium second-hand prices. In addition, customers whose names featured in the first allotment list of 100,000 cars are reportedly also selling their allotments, though at lower premiums.
The premiums for December deliveries, for instance, range from Rs 5,000 to Rs 8,000 (the allotments, however, would be made to the original buyer).
"The buyers are those who either missed out on the first allotment draw or did not bother to book it then. They are people who are quite affluent and own four or five cars, so they wouldn't mind paying that extra buck," said Arif Fazulbhoy, director, Fazulbhoy Motors.
All the eight to 10 Nano models sold from Fazulbhoy's outlet in Mumbai were re-sold even before they were brought to the showroom.
Those who are selling are either in need of cash or choose not to wait for the extended period for the delivery of the car, which ranges from three months to over a year, according to information provided by the company to its buyers.
Demand has also been fuelled by the fact that Tata Motors has not yet disclosed when bookings for the Nano will reopen.
The company had initially stated that bookings would reopen only after the first batch of Nanos was delivered. Although the company had suggested that first-batch deliveries would be complete by the last quarter of 2010, some allottees say their delivery date is scheduled for the first quarter of 2011.
All the second-hand models were from the top-end LX variant, priced at Rs 1,85,375 (ex-showroom Mumbai). The on-road price of the variant is a little more than Rs 2 lakh.
"Buyers of second-hand Nanos are those who have developed a kind of fetish for the car. It’s more the snob value attached to the car than the practical use of it. These buyers are from Mumbai, the National Capital Region and Gujarat, with a strong demand for the yellow, high-end variant," added another used car dealer from the city.
According to a Tata Motors disclosure, among the three variants of the car, 50 per cent of the 203,000 bookings were for the LX variant, 30 per cent for the CX variant and only 20 per cent for the standard variant.
Used car dealers say limited allotments and long waiting periods are the chief reasons for these premium second-hand prices. In addition, customers whose names featured in the first allotment list of 100,000 cars are reportedly also selling their allotments, though at lower premiums.
The premiums for December deliveries, for instance, range from Rs 5,000 to Rs 8,000 (the allotments, however, would be made to the original buyer).
"The buyers are those who either missed out on the first allotment draw or did not bother to book it then. They are people who are quite affluent and own four or five cars, so they wouldn't mind paying that extra buck," said Arif Fazulbhoy, director, Fazulbhoy Motors.
All the eight to 10 Nano models sold from Fazulbhoy's outlet in Mumbai were re-sold even before they were brought to the showroom.
Those who are selling are either in need of cash or choose not to wait for the extended period for the delivery of the car, which ranges from three months to over a year, according to information provided by the company to its buyers.
Demand has also been fuelled by the fact that Tata Motors has not yet disclosed when bookings for the Nano will reopen.
The company had initially stated that bookings would reopen only after the first batch of Nanos was delivered. Although the company had suggested that first-batch deliveries would be complete by the last quarter of 2010, some allottees say their delivery date is scheduled for the first quarter of 2011.
All the second-hand models were from the top-end LX variant, priced at Rs 1,85,375 (ex-showroom Mumbai). The on-road price of the variant is a little more than Rs 2 lakh.
"Buyers of second-hand Nanos are those who have developed a kind of fetish for the car. It’s more the snob value attached to the car than the practical use of it. These buyers are from Mumbai, the National Capital Region and Gujarat, with a strong demand for the yellow, high-end variant," added another used car dealer from the city.
According to a Tata Motors disclosure, among the three variants of the car, 50 per cent of the 203,000 bookings were for the LX variant, 30 per cent for the CX variant and only 20 per cent for the standard variant.
Second slot of Nano, Tata Motors now in the race in Karnataka
Amidst the commotion in installing the manufacturing unit in Gujarat for Rs1 lakh car , Tata Motors is now journeying towards Karnataka(Dharwad) for the same race. If fortune smiles the Karnataka state Tata Motors will start the second plant in its South India base, with an assurance given to the state government in this regard. The reciprocity from the state government has been positive including land, tax concessions in the lines of Gujarat government.
The initial offering of the Karnataka government was in the form of 1000 acres of land in a split of 600 acres in just 24 hours and the remaining in the time span of three months. But the venture could not fruitify but the time has now come for further negotiations and this time Tata is firm on its foot at Dharwad. In the current move, according to the government’s Minister, 2500 acres of land has been acquired adjacent to the proposed Nano plant from which 1000 acres will be benchmarked for Tata. The choice of Dharwad is for the reason that it is closer to Pune to indicate the wide presence of Tata. Further talks are on between the Chairman of Tata, Ratan Tata and the government officials. The present unit in Pantnagar is designing Nano and the full-fledged Nano plant will start its operation from Sanand in Gujarat from 2010.
The Dharwad plant is currently in the operation for Telcon ranges including a bus project with Brazil ‘s Marcopolo. Tata has got possession of 600 acres with the employees ranging upto 3500 in its two plants and the bus plant has yielded Rs500 crore investment by which the commercial production commenced this January. Karnataka government has in good spirits to promote Korea’s Hyundai and, Mahindra&Mahindra too for erecting their units in this state. Earlier, Toyota got the grace from the Karnataka government for Rs800 crore at Bidadi. In all the Karnataka government is in celebrity mood to meet the automobile industry prior to the global investor’s meet slated for January 2010.
The initial offering of the Karnataka government was in the form of 1000 acres of land in a split of 600 acres in just 24 hours and the remaining in the time span of three months. But the venture could not fruitify but the time has now come for further negotiations and this time Tata is firm on its foot at Dharwad. In the current move, according to the government’s Minister, 2500 acres of land has been acquired adjacent to the proposed Nano plant from which 1000 acres will be benchmarked for Tata. The choice of Dharwad is for the reason that it is closer to Pune to indicate the wide presence of Tata. Further talks are on between the Chairman of Tata, Ratan Tata and the government officials. The present unit in Pantnagar is designing Nano and the full-fledged Nano plant will start its operation from Sanand in Gujarat from 2010.
The Dharwad plant is currently in the operation for Telcon ranges including a bus project with Brazil ‘s Marcopolo. Tata has got possession of 600 acres with the employees ranging upto 3500 in its two plants and the bus plant has yielded Rs500 crore investment by which the commercial production commenced this January. Karnataka government has in good spirits to promote Korea’s Hyundai and, Mahindra&Mahindra too for erecting their units in this state. Earlier, Toyota got the grace from the Karnataka government for Rs800 crore at Bidadi. In all the Karnataka government is in celebrity mood to meet the automobile industry prior to the global investor’s meet slated for January 2010.
Tata Motors delivers 2,501 Nanos in August
The country's largest auto maker Tata Motors delivered 2,501 units of small car Nano - billed as the world's cheapest four wheeler --
during the first full month of its sale in August.
The company, which rolled out the car on July 17 has registered a cumulative delivery of 4,976 units during the first month and half, Tata Motors said in a statement.
It had delivered 2,457 units of the car during the first 15 days of July.
The vehicle carries an ex-factory price of Rs one lakh for the base variant and costs anything up to Rs 1,75,000 depending on the model.
Last month, the company's total sales jumped 14.24 per cent to 49,810. Its passenger vehicles sales in the domestic market grew by 11.33 per cent at 17,364.
Tata Group Chairman Ratan Tata had said in the company's Annual Report in July it would deliver up to 60,000 Nanos within the next year.
After originally planning to roll out the 'small wonder' from Singur, Tata Motors had to shift the project to Gujarat on account of violent protests by farmers last year.
during the first full month of its sale in August.
The company, which rolled out the car on July 17 has registered a cumulative delivery of 4,976 units during the first month and half, Tata Motors said in a statement.
It had delivered 2,457 units of the car during the first 15 days of July.
The vehicle carries an ex-factory price of Rs one lakh for the base variant and costs anything up to Rs 1,75,000 depending on the model.
Last month, the company's total sales jumped 14.24 per cent to 49,810. Its passenger vehicles sales in the domestic market grew by 11.33 per cent at 17,364.
Tata Group Chairman Ratan Tata had said in the company's Annual Report in July it would deliver up to 60,000 Nanos within the next year.
After originally planning to roll out the 'small wonder' from Singur, Tata Motors had to shift the project to Gujarat on account of violent protests by farmers last year.
Nano facility in Gujarat to be ready by January: Tata
Tata Motors Tuesday said its plant in Gujarat which will manufacture the Nano, considered as the world's cheapest car, will be completed by January next year.
Tata Motors Chairman Ratan Tata addresses shareholders at the company's 64th Annual General Meeting in Mumbai on Tuesday. the head of India's leading vehicle maker said the country was seeing its initial signs of recovery in the auto sector but there were tough challenges on the road ahead. Tata Motors consolidated earnings for the year 2008-09 showed a net loss of Rs25 billion ($520 million) compared to a net profit of Rs21.7 billion in 2007-08.
"The Sanand plant will be ready by January next year. At first stage, the plant will produce more yellow and silver coloured cars as they are in demand in the market," Chairman Ratan Tata said at the company's Annual General Meeting here.
Tata Motors Chairman Ratan Tata, discusses with Vice Chairman Ravi Kant, and CFO C. Ramakrishna, before addressing shareholders at the company's 64th Annual General Meeting in Mumbai on Tuesday.
He said the Sanand plant would supplement the production of the Rs 1-lakh car that is now coming out of the company's facility at Pantnagar in Uttarakhand.
Last year, Tata Motors pulled out of the proposed Nano site at Singur, West Bengal, following agitation and relocated the plant to Sanand, on the outskirts of Ahmedabad.
Tata Motors Chairman Ratan Tata addresses shareholders at the company's 64th Annual General Meeting in Mumbai on Tuesday.
The shifting of the plant cost the company Rs 100 crore, Tata said, adding, the net loss on account of the relocation had not been assessed yet.
Tata Motors Chairman Ratan Tata makes notes before addressing shareholders at the company's 64th Annual General Meeting in Mumbai on Tuesday.
The car, touted as the cheapest in the world, would initially cater to the Indian market but the company plans to export the vehicle to Europe, Africa and Asia, he said.
Tata Motors Chairman Ratan Tata addresses shareholders at the company's 64th Annual General Meeting in Mumbai on Tuesday. the head of India's leading vehicle maker said the country was seeing its initial signs of recovery in the auto sector but there were tough challenges on the road ahead. Tata Motors consolidated earnings for the year 2008-09 showed a net loss of Rs25 billion ($520 million) compared to a net profit of Rs21.7 billion in 2007-08.
"The Sanand plant will be ready by January next year. At first stage, the plant will produce more yellow and silver coloured cars as they are in demand in the market," Chairman Ratan Tata said at the company's Annual General Meeting here.
Tata Motors Chairman Ratan Tata, discusses with Vice Chairman Ravi Kant, and CFO C. Ramakrishna, before addressing shareholders at the company's 64th Annual General Meeting in Mumbai on Tuesday.
He said the Sanand plant would supplement the production of the Rs 1-lakh car that is now coming out of the company's facility at Pantnagar in Uttarakhand.
Last year, Tata Motors pulled out of the proposed Nano site at Singur, West Bengal, following agitation and relocated the plant to Sanand, on the outskirts of Ahmedabad.
Tata Motors Chairman Ratan Tata addresses shareholders at the company's 64th Annual General Meeting in Mumbai on Tuesday.
The shifting of the plant cost the company Rs 100 crore, Tata said, adding, the net loss on account of the relocation had not been assessed yet.
Tata Motors Chairman Ratan Tata makes notes before addressing shareholders at the company's 64th Annual General Meeting in Mumbai on Tuesday.
The car, touted as the cheapest in the world, would initially cater to the Indian market but the company plans to export the vehicle to Europe, Africa and Asia, he said.
Fiat could help Tata in Nano launch in Latin America
Tata Nano deliveries have started in the Indian market. It’s good to see the car finally on roads driven by common people.
Tata has been considering launching this car in the international markets as well. Latin America is one of the important markets where Nano could generate good sales.
Tata could launch the Nano model in this market with the help from Fiat which is a major player in Latin America.
Fiat and Tata are already collaborators in India. Fiat provides engines to Tata while Tata provides service stations and showrooms to Fiat.
Tata has been considering launching this car in the international markets as well. Latin America is one of the important markets where Nano could generate good sales.
Tata could launch the Nano model in this market with the help from Fiat which is a major player in Latin America.
Fiat and Tata are already collaborators in India. Fiat provides engines to Tata while Tata provides service stations and showrooms to Fiat.
IGNIS New launch from Tata Motora Coming Soon
Tata Motors, part of globally acclaimed Tata group and also known for bringing innovations at times (certainly for the recent Tata Nano imbroglio), is on the verge of rolling out a brand new variant of its most popular car Tata Indica Vista. It has been learnt that the new version will be named as IGNIS and will become the fourth variant of Tata Indica Vista, as a result.
Tata Motors Limited happens to be a multinational corporation headquartered in Mumbai, India.
It is the largest company in the automobile and commercial vehicle sector of India, and a midsized player on the world market with 0.81% market share in 2007 in accordance with OICA data as well.
As per the OICA ranking (based on figures for 2007), it was the 19th largest automaker in the global arena. Apart from this, Tata Motors is the world’s fourth largest truck manufacturer, and the world’s second largest bus manufacturer.
It is to be noted that the company has three variants in its grip already; Aqua, Terra and the Aura. As per the latest info, IGNIS will have 1.4L Saffire engine that powers Fiat Grand Punto at this time. This new engine will certainly be a pleasing transition as the current 1.2L Saffire unit is often considered insufficient for the size of the car.
What are the other exciting features? It has been found that IGNIS version will have re-furbished interiors with a new dash integrated audio system with call answer and reject buttons, bluetooth connectivity and USB connectivity. It also features a new steering wheel with steering mounted audio controls and electrically adjustable outside rear view mirrors. Keyless entry is also standard.
Apart from all these, the new variant will contain dual front airbags, ABS and EBD as added safety features; there has been a great dearth of these in the Indica Vista range of models.
What will be the price? It will be priced at Rs. 4.5- 5 lakh.
Tata Motors Limited happens to be a multinational corporation headquartered in Mumbai, India.
It is the largest company in the automobile and commercial vehicle sector of India, and a midsized player on the world market with 0.81% market share in 2007 in accordance with OICA data as well.
As per the OICA ranking (based on figures for 2007), it was the 19th largest automaker in the global arena. Apart from this, Tata Motors is the world’s fourth largest truck manufacturer, and the world’s second largest bus manufacturer.
It is to be noted that the company has three variants in its grip already; Aqua, Terra and the Aura. As per the latest info, IGNIS will have 1.4L Saffire engine that powers Fiat Grand Punto at this time. This new engine will certainly be a pleasing transition as the current 1.2L Saffire unit is often considered insufficient for the size of the car.
What are the other exciting features? It has been found that IGNIS version will have re-furbished interiors with a new dash integrated audio system with call answer and reject buttons, bluetooth connectivity and USB connectivity. It also features a new steering wheel with steering mounted audio controls and electrically adjustable outside rear view mirrors. Keyless entry is also standard.
Apart from all these, the new variant will contain dual front airbags, ABS and EBD as added safety features; there has been a great dearth of these in the Indica Vista range of models.
What will be the price? It will be priced at Rs. 4.5- 5 lakh.
TATA’s Nano to hit Orissa roads Today
The world's cheapest car Nano from TATA Motors would be handed over to the first customer in the Orissa on Monday. Customers will get the car delivered in five selected outlets across the State this week. Swapna Motors and Bharat Motors in Bhubaneswar, Bharat Motors in Balasore, Way Automotives in Jeypore, Indira Motors in Rourkela and Maa Samaleswari Automobiles in Sambalpur have been authorised to distribute the cars. This has been revealed by Tata Motors Process Action Group associate (Orissa) Uday Narayan Biswal.
Meanwhile, the customers have to pay Rs 1, 40,000 for the cheapest version of the Nano, while the Nano CX would cost Rs 1, 84,000 and a customer would have to shed Rs 2, 20,000 for the LXR version which have facilities of power steering, central locking and power window version of the small car segment.
The cars will come in a variety of colours like racing red, ivory white, summer blue, campaign gold, lunar silver and sunshine yellow.
Meanwhile, the customers have to pay Rs 1, 40,000 for the cheapest version of the Nano, while the Nano CX would cost Rs 1, 84,000 and a customer would have to shed Rs 2, 20,000 for the LXR version which have facilities of power steering, central locking and power window version of the small car segment.
The cars will come in a variety of colours like racing red, ivory white, summer blue, campaign gold, lunar silver and sunshine yellow.
Tatao Nano reached the hands of first three lucky customers
After the long wait, the much coveted Tatao Nano reached the hands of its first three lucky customers. Tata Motors Chairman Ratan Tata presented the first Tata Nanos, the world’s cheapest car, to three customers at a dealership in the Prabhadevi area in central Mumbai on 17th July 2009. The keys of the three cars were delivered to Ashok Vichare, Ashish Balakrishnan and A. Chandrashekaran.
Buzz up!
A land dispute forced the Tata Motors off the site of a factory in Singur, West Bengal that it was building to produce the cars. This case fuelled concerns about its ability to meet demand on time. In this scenario, the delivery was a positive step.
Some 100,000 people were selected from a ballot to be the first recipients of the Nano. They include a roadside cobbler from Mumbai, who had been saving for seven years to buy a two-wheeler, but decided to wait and upgrade to four wheels on hearing that the vehicle would sell for just 100,000 rupees. Others among the 203,000 people who placed orders included an 82-year-old former assistant commissioner of Mumbai police who used to ride a scooter and a market trader looking for an investment for his 12-year-old son.
Ratan Tata launched the Nano in March, predicting the no-frills vehicle would revolutionise travel for millions of Indians. Tata Nano got the growing middle-class, urban population off motorcycles and into safer, affordable cars. Tata Motors' Pantnagar factory in Uttarakhand can produce up to 50,000 Nanos every year. By the end of March, 2010, about 100,000 Nano cars would be delivered to customers
Reviewers have compared Nano to the European Smart car and the classic Volkswagen Beetle. Three versions of the sporty, jellybean-shaped Nano went on sale in April: the basic model and more expensive CX and LX versions, which have extra features like air-conditioning, automatic windows and central locking. The standard model sells for 140,000 rupees including tax in the showroom. The deluxe models cost up to 185,000 rupees.
Buzz up!
A land dispute forced the Tata Motors off the site of a factory in Singur, West Bengal that it was building to produce the cars. This case fuelled concerns about its ability to meet demand on time. In this scenario, the delivery was a positive step.
Some 100,000 people were selected from a ballot to be the first recipients of the Nano. They include a roadside cobbler from Mumbai, who had been saving for seven years to buy a two-wheeler, but decided to wait and upgrade to four wheels on hearing that the vehicle would sell for just 100,000 rupees. Others among the 203,000 people who placed orders included an 82-year-old former assistant commissioner of Mumbai police who used to ride a scooter and a market trader looking for an investment for his 12-year-old son.
Ratan Tata launched the Nano in March, predicting the no-frills vehicle would revolutionise travel for millions of Indians. Tata Nano got the growing middle-class, urban population off motorcycles and into safer, affordable cars. Tata Motors' Pantnagar factory in Uttarakhand can produce up to 50,000 Nanos every year. By the end of March, 2010, about 100,000 Nano cars would be delivered to customers
Reviewers have compared Nano to the European Smart car and the classic Volkswagen Beetle. Three versions of the sporty, jellybean-shaped Nano went on sale in April: the basic model and more expensive CX and LX versions, which have extra features like air-conditioning, automatic windows and central locking. The standard model sells for 140,000 rupees including tax in the showroom. The deluxe models cost up to 185,000 rupees.
Tata Nano to be handed over today
The first of Tata Motors' Nano will be handed over to its first customer later today (17 July).
The keys of the first Nano will be handed over by the chairman of Tata Sons and Tata Motors, Ratan N Tata, at the OEM's dealership in Prabhadevi, Mumbai.
Following this, the first 100,000 cars will be delivered in phases to customers across the country who were selected through a lottery. The first 100,000 customers are price-protected, and will get the car for Rs100,000 (US$2,054), excluding taxes. Delivery of this first batch of cars is scheduled to be completed by the last quarter of 2010.
In all, a total of around 206,000 bookings were received for the Nano. An approximate breakdown of bookings for specific models revealed that 20% went towards the Nano Standard, 30% for the mid-range CX version, while 50% of the bookings were for the top-end Nano LX.
The OEM currently produces the Nano at its plant in Pantnagar, till its new plant in Sanand, Gujarat, comes on stream in December. The Pantnagar production line has output capacity of not more than 50,000upa. However, with start of production in Sanand, Tata Motors' capacity for build of the Nano is expected to rise to 250,000 units.
The keys of the first Nano will be handed over by the chairman of Tata Sons and Tata Motors, Ratan N Tata, at the OEM's dealership in Prabhadevi, Mumbai.
Following this, the first 100,000 cars will be delivered in phases to customers across the country who were selected through a lottery. The first 100,000 customers are price-protected, and will get the car for Rs100,000 (US$2,054), excluding taxes. Delivery of this first batch of cars is scheduled to be completed by the last quarter of 2010.
In all, a total of around 206,000 bookings were received for the Nano. An approximate breakdown of bookings for specific models revealed that 20% went towards the Nano Standard, 30% for the mid-range CX version, while 50% of the bookings were for the top-end Nano LX.
The OEM currently produces the Nano at its plant in Pantnagar, till its new plant in Sanand, Gujarat, comes on stream in December. The Pantnagar production line has output capacity of not more than 50,000upa. However, with start of production in Sanand, Tata Motors' capacity for build of the Nano is expected to rise to 250,000 units.
Tata Motors deliver's first Nano Today
Tata Motors Ltd, India's largest vehicles maker, said on Thursday it would deliver the Nano, the world's cheapest car, to its first customer on Friday.
Chairman Ratan Tata had showcased the Nano at an auto show in New Delhi in January last year, but consumer bookings began only in April this year after the project was delayed due to land disputes at its planned site in the eastern state of West Bengal.
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The plant for producing the Nano was shifted to a new site in Gujarat on the west coast, but the first batch of Nanos would come from its car plant in Pantnagar in northern India.
Tata has assured price protection for the first 100,000 customers, for whom the cars will be available for 100,000 rupees ($2,053), excluding taxes.
Chairman Ratan Tata had showcased the Nano at an auto show in New Delhi in January last year, but consumer bookings began only in April this year after the project was delayed due to land disputes at its planned site in the eastern state of West Bengal.
Article Controls
The plant for producing the Nano was shifted to a new site in Gujarat on the west coast, but the first batch of Nanos would come from its car plant in Pantnagar in northern India.
Tata has assured price protection for the first 100,000 customers, for whom the cars will be available for 100,000 rupees ($2,053), excluding taxes.
Tata nano First commercial consignment come's to Hyderabad
Tata Motors on Tuesday rolled out the first commercial consignment of Nano, regarded as the World’s cheapest car to be showcased at Hyderabad on Tuesday.
“The first consignment has come to Hyderabad. Tata Nanos’ have been dispatched particularly for Hyderabad. They have sent 84 cars, out of which 50 are Tata Nano and the rest 34 are Magic,” said S K Singh, Area Manager of Tata Motors.
Residents in the ‘Twin Cities’ of Hyderabad and Secunderabad had been eagerly waiting for the Tata Nano, costing just over Rs 1,00,000.
They contended that this car is a boon for the middle class society.
“In Rs 1,00,000, you get a Pulsar. Here, in one lakh, five people can travel together. I need to find out the details about its mileage. Once these cars start running on road, all motorcycles will disappear,” said Deep Bhavanishankar, a local resident.
“The first consignment has come to Hyderabad. Tata Nanos’ have been dispatched particularly for Hyderabad. They have sent 84 cars, out of which 50 are Tata Nano and the rest 34 are Magic,” said S K Singh, Area Manager of Tata Motors.
Residents in the ‘Twin Cities’ of Hyderabad and Secunderabad had been eagerly waiting for the Tata Nano, costing just over Rs 1,00,000.
They contended that this car is a boon for the middle class society.
“In Rs 1,00,000, you get a Pulsar. Here, in one lakh, five people can travel together. I need to find out the details about its mileage. Once these cars start running on road, all motorcycles will disappear,” said Deep Bhavanishankar, a local resident.
Nano Set To Roll
One lakh applications selected for the one lakh rupee car.Tata Motors has announced that it has completed the task of selecting the first 100,000 owners of the Tata Nano. Having to choose from the list of a little more than two lakh applications, the first batch of customers were chosen through a random computerized process. While 67% of the applicants decided to go ahead with the option of awaiting the delivery of the car even if they were not amongst the first 1,00,00, Tata has managed to give 55, 021 of these applicants allotments as well while the booking amounts of the remaining applicants will be returned. The company is all set to start deliveries from July 2009 and is expecting the first batch of deliveries to be done by the last quarter of 2010. The first 1,00,00 will get the Nano at its launch price on March 23 after which the 55, 021 retainees will receive their own Nanos.
Here is the long Press Release.
Tata Motors is pleased to announce that it has completed the process to select the first 100,000 owners of the Tata Nano from among the 2,06,703 final list of applicants who had booked the car. As announced at the launch on March 23, the first 100,000 owners were selected through a computerised random selection process.
The company had said that the process would be completed within 60 days of the closure of booking on April 25.
The booking process had also given the option to applicants to indicate whether they would like to retain their booking amounts with the company, even if they do not get selected among the first 100,000 allottees, and await delivery of their cars after them. 67% (137,867) applicants had chosen this option, from which a further 55,021
retainees have been made allotments. The booking amounts of the unsuccessful applicants, who had not exercised this option, are being returned.
The company will be individually informing all applicants about their status of being an allottee, retainee or an unsuccessful applicant. The details have been uploaded on www.tatanano.com . Applicants need to log on with their booking application number to know their status or contact the company appointed call centre (020 66495678).
Here is the long Press Release.
Tata Motors is pleased to announce that it has completed the process to select the first 100,000 owners of the Tata Nano from among the 2,06,703 final list of applicants who had booked the car. As announced at the launch on March 23, the first 100,000 owners were selected through a computerised random selection process.
The company had said that the process would be completed within 60 days of the closure of booking on April 25.
The booking process had also given the option to applicants to indicate whether they would like to retain their booking amounts with the company, even if they do not get selected among the first 100,000 allottees, and await delivery of their cars after them. 67% (137,867) applicants had chosen this option, from which a further 55,021
retainees have been made allotments. The booking amounts of the unsuccessful applicants, who had not exercised this option, are being returned.
The company will be individually informing all applicants about their status of being an allottee, retainee or an unsuccessful applicant. The details have been uploaded on www.tatanano.com . Applicants need to log on with their booking application number to know their status or contact the company appointed call centre (020 66495678).
Tata Introduces Limping Luxury Brands to India
Tata Motors has introduced its Jaguar and Land Rover brands in India, one of the world’s fastest-growing automobile markets. But the celebratory announcement to mark the occasion has been tempered by plummeting sales and the threat of job cuts and factory closures at both brands.
For the first time in eight years, Tata reported an annual loss. The culprit: a $504 million drain inflicted by struggling Jaguar Land Rover on the Indian company’s bottom line. Tata bought the historic brands for $2.3 billion from Ford in March 2008.
Unfortunately for Tata, the purchase was soon followed by a collapse in the global economy. Sales of luxury sedans and S.U.V.’s – core to the Jaguar Land Rover portfolio – have been hit especially hard. According to Reuters, during a 10-month period ending in March, Jaguar Land Rover sales fell to 167,000 vehicles, compared to 246,000 in the same period the previous year.
Mr. Tata maintained his optimism during ceremonies held last Sunday welcoming the British makes to India. “We at Tata Motors are proud to have these brands,” he said, according to The Economic Times, saying it was a “terrific decision.”
But questions linger as to how Tata — relatively unknown outside of India and a specialist in budget-minded vehicles — can align its operations with two British companies synonymous with prestige, power and a well-heeled clientele.
Base versions of the Tata Nano city car start at $2,200 (taxes and fees included), whereas prices for Jaguar Land Rover products in India will begin at more than $120,000. While the Nano has been well received by the media – including my test drive of the range-topping LX version – the fact remains that the tiny four-door has none of the frills (and even less of the social status) typical to Jaguar and Land Rover vehicles.
The Indian lineup of Jaguar and Land Rover vehicles will include the XF and XFR sedans, sporty XKR coupe, Land Rover Discovery 3 and the Range Rover S.U.V. Tata Motors said it would develop a dealer network for Jaguar Land Rover this year and next. According to a report in The Business Standard, Land Rover is also negotiating with the Indian government to supply military vehicles to the armed forces.
That news might provide little relief for Jaguar Land Rover employees in Britain. The Birmingham Post reports that Prime Minister Gordon Brown of Britain has held talks with Tata regarding the company’s threats to close British factories to stem the flow of red ink. Belt-tightening by Tata could also put a crimp on the development of future models, such as a hybrid version of the Jaguar XJ sedan and an eco-themed XE sports car.
For the first time in eight years, Tata reported an annual loss. The culprit: a $504 million drain inflicted by struggling Jaguar Land Rover on the Indian company’s bottom line. Tata bought the historic brands for $2.3 billion from Ford in March 2008.
Unfortunately for Tata, the purchase was soon followed by a collapse in the global economy. Sales of luxury sedans and S.U.V.’s – core to the Jaguar Land Rover portfolio – have been hit especially hard. According to Reuters, during a 10-month period ending in March, Jaguar Land Rover sales fell to 167,000 vehicles, compared to 246,000 in the same period the previous year.
Mr. Tata maintained his optimism during ceremonies held last Sunday welcoming the British makes to India. “We at Tata Motors are proud to have these brands,” he said, according to The Economic Times, saying it was a “terrific decision.”
But questions linger as to how Tata — relatively unknown outside of India and a specialist in budget-minded vehicles — can align its operations with two British companies synonymous with prestige, power and a well-heeled clientele.
Base versions of the Tata Nano city car start at $2,200 (taxes and fees included), whereas prices for Jaguar Land Rover products in India will begin at more than $120,000. While the Nano has been well received by the media – including my test drive of the range-topping LX version – the fact remains that the tiny four-door has none of the frills (and even less of the social status) typical to Jaguar and Land Rover vehicles.
The Indian lineup of Jaguar and Land Rover vehicles will include the XF and XFR sedans, sporty XKR coupe, Land Rover Discovery 3 and the Range Rover S.U.V. Tata Motors said it would develop a dealer network for Jaguar Land Rover this year and next. According to a report in The Business Standard, Land Rover is also negotiating with the Indian government to supply military vehicles to the armed forces.
That news might provide little relief for Jaguar Land Rover employees in Britain. The Birmingham Post reports that Prime Minister Gordon Brown of Britain has held talks with Tata regarding the company’s threats to close British factories to stem the flow of red ink. Belt-tightening by Tata could also put a crimp on the development of future models, such as a hybrid version of the Jaguar XJ sedan and an eco-themed XE sports car.
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