Design for Cost : Tata Nano

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DESIGN FOR COST DESIGN FOR “COST” TATA NANO A case study on TATA NANo Presented by Vikas Minhas TATA “Nano” ABOUT: TATA MOTORS TATA MOTORS LTD headquartered in Mumbai, India is Part of the TATA Group. Tata Motors has a consolidated revenue of USD 16 billion TATA motors was established in 1945, when the company began manufacturing locomotives and manufactured its first commercial vehicle in 1954 in a collaboration with Daimler-Benz AG of Germany. This collaboration ended in 1969. Tata Motors has auto manufacturing and assembly plants in Jamshedpur, Pant Nagar, Lucknow, Ahmadabad and Pune in India as well as in India as well as in Argentina South Africa and India, Argentina, Thailand. In 2004, TATA bought DAEWOO’s Truck manufacturing unit and became TATA DEAWOO Commercial Vehicle, S. Korea , In March 2008, TATA MOTORS acquired BRITISH Brands Jaguar and Land Rover (JLR) business in UK which also includes the Daimler and Lanchester brands. SEARCH FOR MARKET OPPORTUNITIES To meet the customer’s requirement of middle class people, ou d big opportunity au c TATA found a b g oppo tu ty to launch a s a a d c eap ca small and cheap car which can house 4 people. As per a rough estimate every home in India has a minimum 1 motorbike which costs around 50,000 INR equaling to , q g USD1097.00, and most of families have 2-3 motorbikes. This mean an average middle class family has around 2 motorbikes whose combined cost = 100 000 INR ie USD 100,000 2194.00 From this projected cost TATA Motors stared reverse engineering to develop t d l world’s cheapest car which satisfy customer need as ld’ h t hi h ti f t d MARKET OPPORTUNITIES AND CUSTOMER NEEDS TATA geared up to satisfy the need of a common person requirement to have a cheap, simple, reliable and fuel efficient “people’s car”. TATA bench marked its competitor as Maruti 800, most popular car in Indian market.

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