Tag Archives: 1 Lakh Rupee

TATA NANO Currently Holds the Tag of Cheapest Affordable Car in the World

When the news break that the Indian automobile company is making a world cheapest car its competitors thought that it’s impossible but when the product was launch in the market and the company named it as a TATA NANO, its cooperate sector has given it a name of One lakh rupees Car and its owner Mr. Rattan Tata has given the name “People’s Car”. All people were shocked by this biggest breaking news of India in the year 2008.

RATAN TATA with TATA NANO CAR.

Purpose of making this Car:

“Whenever I wanted to visit my relatives I had to rely on public transport or a bike. The car allows me to travel with my family,” a common man of India. Considering the common thinking of Indian, Purpose of the car was shown by the owner of TATA automobile company that it is a people’s car so it should be so cheap that people who earn 400-500 dollar can afford to take a new branded car.

Also a family of four or five can afford it.

Cost Cutting Features:

When the car was only in the mind of owner and designer and there challenge was to cut the features so that the car gets cheaper and cheaper but they need a family car.

There was in the minds of designers to make a roofless car but considering the facts that Indians with their families need some privacy and leaving a motorcycle and coming to car should have a strong reason so they can’t afford to make a roofless car. Also someone trying to design a two door car but then reviewing the purpose the idea was put in to dustbin.

Also they have to consider the roads and weather of India in designing the car. But there was no big work on it although the car assures with minimum safety. The two things which they work on it and by which they try to cut the features were weight of the body and material. The weight of the car is approximately 600 kg. There is a Multipoint fuel injector which is cheaper than direct injection, however it gets wet slightly while intake of 40/60 psi. In direct injection which takes  fuel with the pressure of 1800 bar to 2600 bar and is dry and clean. However, in newer petrol, direct injection systems are beginning to replace.

The spare tire and gas tank in the front while the the battery is under the driver’s seat.

It has 4 speed manual transmission (it’s not automatic) that makes it more cheap as it requires cheap parts to build comparing to automatic and it is mechanically simpler so it’s repairing and maintenance will cost cheaper. The Speed of the car is about 105Km/h, No power steering present in it and is unnecessary due to its light weight. The spare tire and gas tank are in the front, while the battery is under the driver’s seat. All that rearranging keeps the front axle weight balanced, and improves the handling of the car. Currently the car is based on gasoline no diesel version of this is out in the market. Although will work on it but it will lose the tag from the car of 1 lac.

Design of the car:

The car’s exterior was designed at Italy’s Institute of Development in Automotive Engineering.Mostly in India or any other Asian countries you will not find Car color to be yellow it looks like a TAXI color but NANO cars look appealing with this color.

What they had to do for marketing:

They had to do nothing for the marketing as the brand and their ideas were so big that they don’t need any big marketing. Indians in the start buy about 1.5 million cars and that’s enough to start your car business. Tata is building a network of Nano dealers in towns of fewer than 500,000 people. To make it more affordable, Tata offers a down payment as low as 15,000 rupees. It also extended the warranty to four years or 60,000 kilometers.TAT A has grown its relation with European countries and nearly we will see TATA NANO on European Roads

Challenges:

India’s best-selling and second-cheapest car, starts at 232,247 rupees. Although being the cheapest car will attract the most Indians but some of them will lose the interest,

“India is a value-for-money market, it’s not a cheap market. So when you are having a product which is available at 20, 25 percent higher price, but this is a proper car, then people would rather go for that rather than this car,” said Hetamasaria.

Secondly, Tata built a Nano plant in West Bengal, but was forced out in October 2008 by violent protests from farmers. It made Nanos temporarily at another plant while its new factory was built in Gujurat. For that they also had to trained the workers and fresh labors which was another challenge. As Petrol cars have been hit especially hard in the market so it will be against NANO Car.

Thirdly, some people of Indians do hesitate of buying the cheapest car as they think it is a pride of some people.

Fourthly, there was also question on carbon emission on which there engineers clarify that comparing with the carbon emission the car produces fairly low.

Fifthly, the burning issue of TATA Nano and all the fire accidents reported on the Tata Nano say the fire started in the rear where the engine is placed. Users of the Nano say they feel slight heat of the engine in the rear cabin. Is it because it is not properly insulated?

What TATA Motors need to do:

TATA NANO motors should start selling cars to neighboring countries of India to get increase in sells and moreover in Pakistan it is also impossible to buy 2 Lakh Pak Rupees  new car and if TATA start selling cars in Pakistan on that price by planting their outlets so they could capture a new market where no one is King in making cheap and affordable cars. In US, Tata will not succeed as people of US despite of inflation look for best and quality although TATA gives quality but the thinking of having a super fast cars will make the business of cars not so high in US, whereas in Pakistan they can get some great and positive results.