Cheapest Car Research Articles

Why Tata Nano Failed? From Ascent to Ashes: Unraveling the Tata Nano Saga – A Chronicle of Triumph, Tragedy, and Missteps

The Tata Nano launched in 2008 was initially marketed as the world's cheapest car, designed to provide an affordable transportation solution for the masses in India. It was a revolutionary concept that aimed to bring mobility to a wider segment of the population. Ratan Tata, the former Chairman of Tata Sons, envisioned the Nano as a symbol of innovation and social impact. Under his leadership, Tata Motors endeavored to create a compact, economical car that could transform the way people in India commuted. The global ambition of the Nano was to showcase India's engineering capabilities and demonstrate how a low-cost, frugal design approach could result in a groundbreaking product. Ratan Tata's vision extended beyond the domestic market, aiming to position the Nano as a viable option for consumers worldwide. However, despite the initial hype and anticipation surrounding the Nano, various factors contributed to its failure in the Indian market. Issues such as quality concerns, safety perceptions, marketing challenges, and changing consumer preferences played a significant role in the Nano's inability to meet sales expectations and establish a sustainable presence in the automotive industry. Ratan Tata made a roapmap to sell Minimum of 3 lacs of Tata Nano car in the first Years, but the reality is Tata Nano couldn’t cross the selling of 3 lacs units even after 8 years, before its get retired. Keywords: Anticipation, Envisioned, Groundbreaking, Innovation, Revolutionary

10 Wrong Answers to Common cheap cars for sale Whitchurch Questions: Do You Know the Right Ones?

10 Wrong Answers to Common cheap cars for sale Whitchurch Questions: Do You Know the Right Ones?

15 Best cheap cars for sale Carmarthenshire Bloggers You Need to Follow

15 Best cheap cars for sale Carmarthenshire Bloggers You Need to Follow

11 "Faux Pas" That Are Actually Okay to Make With Your cheap cars for sale Bargoed

11 "Faux Pas" That Are Actually Okay to Make With Your cheap cars for sale Bargoed

Reverse Innovation: An Exploratory Study on Tata Nano Motors

This article unpacks the concept of reverse innovation by studying the Nano version of the Tata engine, the cheapest car in the world to be unveiled in India. The document examines the concept process, product development and marketing strategy used by the company. Nano was made with the people of India in mind, so it was the first local production for local buyers before it exports to the developed world, the development of Nano products became known for its cost-saving features, which initially influenced the price of promotion, but later increased due to car innovations. The car is known for its cost-cutting features, such as three walnut camera wheels, access to the trunk from the inside and a windshield wiper. The price was marked at $2,000, which was equivalent to a motorcycle. Some notable aspects that led to Tata Nano's success include the recruitment of competent and trained human resources, creating synergies with chain offerings for easy distribution. But the company faced challenges ranging from looming safety standards causing a car fire, a longer wait for the vehicle and ultimately a marketing strategy that was unsustainable and ultimately led to a drop in sales. Key words: Reverse innovation, emerging economies, Tata Nano motor DOI: 10.7176/JESD/12-6-11 Publication date: March 31 st 2021

CASE STUDY: TATA NANO

The TATA NANO was a compact city car manufactured and marketed by Indian Automaker TATA MOTORS over a single generation, primarily in INDIA, as an inexpensive rear-engine hatchback intended to appeal to current riders of motorcycle and scooters. According to the recent, report INDIA overlook BRAZIL and become the sixth largest passenger vehicle producer in the world. This car is the cheapest car in the world than also people are not to buy this car for their level of status. There is various strategy which the company may apply wrong that why the car may not to be purchases more in the India.

TRIP Steel for Automobile Industry in Vietnam

When Vietnam joined the World Trade Organization (WTO), we made a non-discriminatory commitment between home-made goods and imported goods, so the great protection of domestic manufacturing enterprises is not can exist. Special consumption tax is only a historical period and will have to be adjusted, as this time transport infrastructure is still poor, people's living standards are not high. Particularly for domestically produced cars, it is not much affected by import tax, but still subject to SCT by the number of seats and cylinder capacity in accordance with the Law on Special Consumption Tax. As for value added tax (VAT), we should not mention much because most consumer products in Vietnam apply a VAT rate of 10%. The application of tariffs aims to encourage businesses to increase localization rates, and at the same time develop the automobile industry, aiming at export. Therefore, businesses need to try to save production and business costs, properly account market price. Vietnamese consumers are still "expecting" after 2018 to buy cheap cars because the import tax on complete cars will be reduced to 0%. However, in contrast, some comments also suggest that at that time most of the domestic car manufacturers and assemblers will turn into importers.

TRIP Steel for Automobile Industry in Vietnam

When Vietnam joined the World Trade Organization (WTO), we made a non-discriminatory commitment between home-made goods and imported goods, so the great protection of domestic manufacturing enterprises is not can exist. Special consumption tax is only a historical period and will have to be adjusted, as this time transport infrastructure is still poor, people's living standards are not high. Particularly for domestically produced cars, it is not much affected by import tax, but still subject to SCT by the number of seats and cylinder capacity in accordance with the Law on Special Consumption Tax. As for value added tax (VAT), we should not mention much because most consumer products in Vietnam apply a VAT rate of 10%. The application of tariffs aims to encourage businesses to increase localization rates, and at the same time develop the automobile industry, aiming at export. Therefore, businesses need to try to save production and business costs, properly account market price. Vietnamese consumers are still "expecting" after 2018 to buy cheap cars because the import tax on complete cars will be reduced to 0%. However, in contrast, some comments also suggest that at that time most of the domestic car manufacturers and assemblers will turn into importers.

지엠의 글로벌 전략 변화는 성공적이었는가? : 2018년 한국지엠 군산공장폐쇄를 중심으로

One possible way to understand the situation of GM Korea's which received ₩810 billion from the Korean government in 2018, is to know how GM has managed its global strategy and to evaluate whether the strategy has produced good results. We looked at the failure of ‘World Car’ strategy, M&A strategy and the failure of it, and the rise of Korea GM. We saw that GM’s trial of selling Opel after GM’s bankruptcy and the strategic reduction of GM Korea’s production ability as a result of the reversal of the decision. As a result of such failures, GM had to sell Europe GM and had come to close the Gunsan factory in Korea. We can summarize the GM’s new strategy as follows. In the North American market, low oil prices and high tariffs are favorable for light commercial vehicles. The second strategy is to raise relatively high profits through cheap cars in the Chinese market. All other markets are virtually withdrawn or passive. From this point of view, GM Korea’s production capacity is not important, and the 2018 ROK-US FTA renegotiation has also contributed to this strategic goal. As a result of the renegotiation, first, GM defended the US market from Korean auto-makers, because Korean automobile companies that have developed pickup trucks for the US market will not be able to sell them to the US market till 2040. The second is that the US auto-makers can export to Korea 50,000 units per brand per year without being regulated by Korea, so GM can sell cars as much as that of have been sold in Korea. According to the contract which was agreed between GM and Peugeot, GM will be able to enter the European market again from the beginning of August 2020. Looking at the above, the goal of GM want to get through GM Korea is expected as follows. First, improve cash flow by securing subsidies from Korean government. Second, they will close one or more factories including Gunsan factory. Third, GM Korea will lower its cost structure through labor negotiations. Fourth, maintain the research manpower until 2020 and carry out model changes to be put into European market after summer 2020. Finally, by 2020, it will hire a new worker at the time of entry into production and will try to re-enter the European market with significantly lowered labor cost. In other words, at least until 2020, it is expected that GM Korea will reorganize its company as a research-centered organization and maintain its production capacity minimum. So, it is necessary to impose certain legal obligations on the management of multinational corporations in Korea. In other words, it is necessary to make a law to force the intellectual property right made by the investment of a corporation in Korea to belong to a Korean subsidiary.

Introducing a Model of Urban Taxi Driver\u2019s Offenses

The aim of this study is to investigate the unsafe behavior of taxi drivers as a large group of professional drivers and the factors affecting driving violations occurring in Tehran. For this goal, the data regarding driving offenses of urban taxi drivers in 22 districts of Tehran from 2015 to 2016 has been collected from traffic police and used in statistical analysis and multiple regression modeling. According to the results, the probability of a red light violation during working days is more than non-working days. In addition, taxi drivers older than 70 are more likely to commit red light violation compared to the drivers younger than 30. Moreover, prohibited entry is more probable to occur during working days being about 2.5 times more than that of non-working days. Besides, drivers with newer and more expensive cars commit less driving offenses compared to the drivers with older and cheaper cars. Finally, it was found that by increasing the engine power of the vehicles, the rate of driving offenses by taxi drivers is decreased, such that in cars with 1600 cc engine power or less, the probability of not paying attention to the police regulations is six times more than the cars with 1800 cc engine power and more.

Positioning the Tata Nano (B)

The case focuses on positioning a new brand, the Tata Nano. The car has been widely publicized as the world's cheapest car at Rs.1 lakh. Students must consider the gap between the ultimate target, the huge emerging middle class of Indian consumers, and the limited capacity and distribution available in choosing a target. They also must select between alternative competitive frames and the various points of difference they highlight. The case unfolds in two stages. The first decision point is in 2009, at the launch of the time of the product launch. The second decision point is 18 months later, after production capacity has increased and some product safety issues have arisen.The primary goal of the case is to illustrate the choices made in developing a strong brand positioning and the interrelationship between these choices. Students select a target and an appropriate competitive frame of reference and point of difference for that target and summarize these elements in a positioning statement. The case also highlights importance of making promotion and distribution decisions that are consistent with the positioning.

Positioning the Tata Nano (A)

The case focuses on positioning a new brand, the Tata Nano. The car has been widely publicized as the world's cheapest car at Rs.1 lakh. Students must consider the gap between the ultimate target, the huge emerging middle class of Indian consumers, and the limited capacity and distribution available in choosing a target. They also must select between alternative competitive frames and the various points of difference they highlight. The case unfolds in two stages. The first decision point is in 2009, at the launch of the time of the product launch. The second decision point is 18 months later, after production capacity has increased and some product safety issues have arisen.The primary goal of the case is to illustrate the choices made in developing a strong brand positioning and the interrelationship between these choices. Students select a target and an appropriate competitive frame of reference and point of difference for that target and summarize these elements in a positioning statement. The case also highlights importance of making promotion and distribution decisions that are consistent with the positioning.

Tata Motors Limited: Ratan's Next Step

Suitable for MBA, EMBA, and executive education programs, this case uses Tata Motors' move to acquire Jaguar Land Rover (JLR) from Ford to analyze a growth-through-acquisition strategy. It offers a discussion about the firm's overall strategy to acquire instead of growing organically. The case begins when Ratan Tata, chairman of Tata Motors, unveils the world's cheapest car—the Nano. He had challenged the people around him to design and produce something that had previously been unthinkable. Their ability to deliver on such a bold aspiration provided the confidence Tata Motors needed to compete in the international automobile market. Ratan believed he would have to establish a firm foothold in the United States and the United Kingdom to be considered a global contender. His strategy was to become a runner in the bid to acquire JLR from Ford. Establishing a luxury brand would go a long way toward separating Tata Motors from regional automotive firms. Yet Ratan had to think about whether the firm was well positioned to execute the acquisition if it won the bid. Or was organic growth a safer route to the same end? Excerpt UVA-S-0184 Rev. May 9, 2013 TATA MOTORS LIMITED: RATAN'S NEXT STEP On January 10, 2008, Ratan Tata, chairman of Tata Motors Limited (Tata Motors), drove onto the stage at the New Delhi Auto Expo in the world's cheapest car. As he parked next to two other models of the Nano, he thought back on the day several years prior when he had promised the world an affordable car that could be bought for under $ 2,500. At the time, India was an emerging economy that had begun to invest millions of dollars in transportation infrastructure. Ratan saw the influx of roads and new prosperity for Indians as the perfect environment to debut a car that could be purchased by almost anyone. Like his personal hero, John F. Kennedy, Ratan challenged the people around him to design and produce something that had previously been unthinkable. Ratan's ability to deliver on such a bold aspiration instilled in his investors and him the confidence that Tata Motors was capable of competing in the international automobile market. The Nano's production was made possible by a wide range of capabilities within the Tata Group, which, along with Tata Motors, owned 98 other companies operating in 80 countries. Such a diverse and complete range of resources made Tata's future bright. And even as Ratan stood on the stage introducing his accomplishment, he wondered what the next step ought to be to move his company forward. A lifelong interest in automobiles and an appreciation of the Western car market led Ratan to believe that he would have to establish a firm foothold in the United States and the United Kingdom to be considered a contender in the global automotive industry. His mind turned to the ongoing bid and negotiations to acquire Jaguar Land Rover (JLR) from Ford Motor Company (Ford). Establishing a luxury brand would go a long way toward separating Tata Motors from regional automotive firms. Yet he had to think about whether the firm was well positioned to execute the acquisition if it won the bid. Or was organic growth a safer route to the same end? . . .

The Tata Nano: The People's Car (Abridged)

This case is an abridged version of UVA-M-0768, Tata Nano: The People's Car (A), and UVA-M-0804, Tata Nano: The People's Car (B). Excerpt UVA-M-0850 Jul. 5, 2013 THE TATA NANO: THE PEOPLE'S CAR (ABRIDGED) Source: © User:High Contrast/Wikimedia Commons/CC-BY-SA-3.0. It was one of the longest-awaited and most-talked-about car debuts in India. On January 10, 2008, Tata Motors unveiled the Nano, a USD2,500 automobile referred to as “the people's car.” Would it live up to the hype? And did its launch signal a new era for the small car market in India? How could Tata ensure the product would be profitable? Measuring 3.1 m by 1.5 m, the Nano displaced Maruti Udyog's Maruti 800 as the world's smallest car, yet its seating room was 21% greater than the 800's—providing ample room for four adults. The Nano was also one of the world's most fuel-efficient cars, getting 52 mpg in the city and 61 mpg on the highway. Touted as the cheapest car in the world, the Nano was scheduled to be available in September 2008. . . .

The incidence of Cash for Clunkers: Evidence from the 2009 car scrappage scheme in Germany

This paper investigates the German car scrappage program, focusing on the incidence of the premium. We ask how much of the €2500 ($3500) buyer subsidy is actually captured by the demand side. More precisely, we analyze the program’s impact on different car segments, allowing for heterogeneity in incidence at different points in the vehicle price distribution. Using a unique microtransaction data set, we find that the incidence of the subsidy strongly and significantly varies across price segments. Subsidized buyers of cheap cars paid a little more than comparable buyers who did not receive the subsidy, indicating incidence amounts slightly below 100 %. For more expensive vehicles, subsidized buyers were granted large extra discounts on top of the government premium, translating into incidence amounts considerably greater than 100 %. Taken together, this results in an aggregate incidence amount of up to plus €350 million, suggesting that the positive effect for expensive cars overcompensates the negative effect for small cars.

Concept for a Differential Lock and Traction Control Model in Automobiles

The automobile is a complex integration of electronics and mechanical components. One of the major components is the differential which is limited due to its shortcomings. The paper proposes a concept of a cost effective differential lock and traction for passenger cars to sports utility vehicles alike, employing a parallel braking mechanism coming into action based on the relative speeds of the wheels driven by the differential. The paper highlights the employment of minimum number of components unlike the already existing systems. The system was designed numerically for the traction control and differential lock for the world’s cheapest car. The paper manages to come up with all the system parameters and component costing making it a cost effective system.

A Study on the Consumer Behavior Towards Tata Nano

The Tata Nano is an inexpensive, rear-engine; four-passenger city car built by the Indian company Tata Motors and is aimed primarily at the Indian domestic market. One of the greatest strengths of Nano is its tiny price tag. The starting price is Rs.1,00,000 which is cheaper than Maruti 800, the next cheapest car in Indian market priced at Rs.1,84,641. Even after the road tax, service tax and the other registration fees, Nano base model will work out to be just Rs. 1,30,000. Even its advanced versions like Nano LX will at most cost around 1,79,000. Nano is targeted at two-wheeler segments, second-hand car segments, auto rickshaw segments, middle and lower income segments. Tata positioned Nano in peoples’ mind as “The Peoples' Car”, “One Lakh Car that drives One Billion Dreams” and “The World’s cheapest car” without compromising on quality, safety and eco-friendliness.

Distortionary company car taxation: deadweight losses through increased car ownership

We analyse the effects of distortionary company car taxation through increased household car consumption for the Netherlands. We use several identification strategies and demonstrate that for about 20 % of households company car possession increases car ownership. The annual welfare loss of distortionary company taxation through increased car ownership is generally rather small, maximally €120 per company car, and much less than the welfare loss through increased expenditure on the company car. However, for policies that exempt households from paying tax on their company car, the annual deadweight loss is likely higher. Our first-best tax policy recommendation is to increase company car tax rates. However, our current results suggest that a second-best policy, which keeps average company car taxation constant but which reduces the marginal tax on cheaper cars and increases the marginal tax on expensive cars, would be welfare improving as overconsumption of company cars will be reduced.

The Incidence of Cash for Clunkers: An Analysis of the 2009 Car Scrappage Scheme in Germany

Governments all over the world have invested tens of billions of dollars in car scrappage programs to fuel the economy in 2009. We investigate the German case using a unique micro transaction dataset covering the years 2007 to 2010. Our focus is on the incidence of the subsidy, i.e., we ask how much of the € 2,500 buyer subsidy is captured by the supply-side through an increase in selling prices. Using regression analysis, we find that average prices in fact decreased for subsidized buyers in comparison to non-subsidized ones, suggesting that eventually subsidized customers benefitted by more than the subsidy amount. However, the incidence was heterogeneous across price segments. Subsidized buyers of cheap cars paid more than comparable buyers who did not receive the subsidy, e.g. for cars of € 12,000 car dealers reaped about 8% of the scrappage prime. The opposite was true for more expensive cars, e.g. subsidized buyers of cars of € 32,000 were granted an extra discount of about € 1,100. For cars priced about € 18,000, we find no price discrimination, i.e., in this price segment consumers fully captured the transfer. Our results can be explained by optimizing behavior on the supply-side both in the lower and upper price segments. The results are extremely robust to extensive sensitivity checks.

The Turnaround of Tata Nano: Reinventing the Wheel

Tata Nano has rewritten the evolution of transport by creating history as the world’s cheapest car. The creation of Tata Nano is a result of innovation leading to new market creation to tap latent opportunities lying at the bottom of the pyramid in the automobile, four-wheeler segment. This is the turnaround story of Tata Nano which focuses on how the initial strategies for launching and positioning backfired, leading to attraction of the wrong segment towards the car. There were instances that made people lose their interest and trust in Nano resulting into its nose-diving sales. The case highlights how Tata Motors Ltd. recognized its shortcomings and mistakes that led to the rejection of Nano among the segment it was created for. It revamped its strategies keeping in mind only its targeted segment that is the bottom of the pyramid. Thereafter it bounced back to win the trust of its prospective customers and is presently on a path-breaking journey to win sales.