Make Nano more robust Upgrades

Tata Motors has taken a few technical measures in the Nano, post the ‘fire’ incidents involving the car. The new additions are 1) a cover for the catalytic convertor, 2) addition of a fuse in the electrical system to prevent short-circuit post any after-market fitment in the car, 3) replacement of the starter motor (in cars produced till Jan ’10). The process of taking the corrective measures in the Nanos will begin from the 3rd week of November.



While these steps are being taken to pre-empt any further technical snag in the Nano, Tata Motors group CEO Carl Peter Forster insisted that there is no ‘principle problem’ with the car. He said that there was a ‘second very intense’ investigation by an independent team into the cause of the ‘fire’ incidents. These cases happened in ‘some unusual circumstances’, says Forster like in one where there was a piece of paper found in the catalytic converter. The technical measures have been taken to make the Nano more robust, he said.

Talking about the falling sales of the Nano over the last four months, Forster said that availability of finance has posed a ‘hurdle’ in sales. He says that the Nanos sold in the initial months were mostly bought by people who are not the actual target customers of the car. The intended customers, who are mainly two-wheeler owners, are facing some problems in getting finance as many of them do not enjoy the same credit worthiness as regular car buyers. Forster says Nano sales are set to pick up again once the finance related issues are sorted out.

Tata Motors has sold over 70,000 Nanos till October end. The car is currently available for purchase in Karnataka, Maharashtra, Uttar Pradesh and West Bengal. Open sales will gradually be extended state by state.

Ref : http://www.autocarindia.com/news/upgrades-make-nano-more-robust

Hybrid cars on Nano platform

My Iris reported that TATA Motors has plans to use its Nano platform to build electric and hybrid cars and to produce more high end models.

TATA Group said TATA Motors should target exports of the car in the developing countries like Brazil, China, Indonesia and Russia where the growth rate is over 10%.

The introduction of Nano was compared to that of the Ford Model T, the car that completely revolutionized the automobile industry. Nano is also expected to create a new distinct category in the auto industry - the People’s car.

A true Indian car, Nano has 97% local content. Before Nano, Maruti 800 was the cheapest car in the Indian market priced at around INR 2 million.

TATA Motors Car

Tata Motors plans to roll out the “people’s car” by the mid financial year of 2009 for the national market.

After too much of hustle bustle at Singur, West Bengal, its the time to enjoy for the small car freak. Tata’s have decieded to unveil its 1 lakh car from its stable, analysts believe that it is going to revolutionise the Indian passenger car market. January 10th, 2008, the day on which you can say “small is beautiful” at the upcoming Auto-Expo at New Delhi. The prototype is already ready and had been test-driven in the Pune factory.
The People's Car" by Tata Motors

The Beside this ultracheap car, there will be more at display in collaboration with Fiat Spa at the Expo. Tata and Fiat has jointly booked an area 5200 sq.m at the said Expo. As per the German auto consulting firm CSM Worldwide, Tata Motors will be the country’s largest manufacturer of cars and commercial vehicles by 2013 while at present it holds more than 16% of Indian passanger car market. Even though India has a decent number of buyers for Mercedes-Benz and other imported foreign cars, Tata is hopeful that a huge chunk of first time buyers will be their customers.

The factory at Singur, WB is running in a full speed and the engine shop, press shop and paint shop has already been completed.

Tata Jaguar any worse than Ford Jaguar?

Ta Ta Jaguar
The European luxury brands have been a drag on Ford, which is focusing on a turnaround in its North American business. The company is getting $2.3 billion in the sale, but it is contributing $600 million to the Jaguar and Land Rover pension plans when the deal closes. That means Ford is netting roughly a third of what it paid for Jaguar (acquired in 1989) and Land Rover (in 2000).

For Tata, much has been written about how the deal marks a big global leap for the 139-year-old Indian conglomerate that began making cars just 10 years ago. Tata Group, a large steelmaker, has recently ventured into businesses like chemicals and luxury hotels. With the purchase of Jaguar and Land Rover, Tata Motors hopes to learn about marketing and selling in the West.

Some have questioned how Tata Motors can make what seems to be a bigger leap: from mass to class. Tata is best known for being the maker of the cheapest car in the world: the Nano, a 100,000 rupee ($2,500) 33-horsepower car, in India.

Still, if Jaguar and Land Rover can continue to retain their mystique and cachet while being made in Britain—and its history of failed automakers and sometimes shoddy manufacturing—then buyers shouldn't mind too much if their owners are now in Mumbai.

John Elliott on the Riding the Elephant blog on Fortune.com says that besides whether Tata can break the British auto industry's "cycle of decline," the other big question is what happens when Ratan Tata, the conglomerate's patriarch who is now 70, retires.

"It is Tata who has provided the personal drive and leadership to turn Tata Motors into a business that can produce the Nano and buy two world-famous brands in the same year. There's a big job waiting for someone—and Tata is not yet saying who."

After years of being unable to make a profit off Jaguar, Ford is trying to sell it. One of the interested buyers is Tata, a highly profitable Indian firm that runs several luxury brands including Taj hotels and Tetley Tea.

The TATA brand is a well-established brand in India. As you would know, the TATA group has a diversified portfolio of brands whether it be in the steel industry ( Corus, for example) or other industries such as automobiles, hotels etc. So, they know how to manage brands. Plus, they are a highly efficient group and have always been since their inception. The only difference is that they are now going global (though frankly, the Indian market itself provides ample scope). I would be surprised if the American public subscribed to the view of this gentleman. Rather, i believe that people will appreciate the core values that the TATA's live by, especially their work ethic. Assuming they strike the Jaguar deal, one would hope their efforts will maximise value for shareholders and help in growing the value and visibility of brand jaguar. Further, i must add that the gentleman's remarks show that even businessmen wear blinkers. Indian business talent, managerial skills etc have developed over decades (pre and post market-liberalisation)and therefore one finds Indians at the top rung in global companies(Citibank, Pepsi etc)and as successful entrepreneurs/businessmen(of course with great inputs in higher education from American universities and India's IIM's/IIT's). So, clearly, talent and ability to manage a brand/business is not the deficiency here. The deficiency arises out of warped ideas and perceptions which are relics of a Cold-War era when there was little Indo-US cultural (and business) exchange and the only reports newspapers carried of India were one of poverty, starvation, snake-charmers and elephants! Now, i wouldn't say it was all fake but i certainly feel that it was exaggerated. Actually,it was bound to be so, considering the complexity, variety and diversity of India and the fact that one can't generalise its people culturally or economically.