Tata Motors in India unveiled its “Nano”

At last, this month, the Tata Group, the largest Indian corporation will be launching its much-talked-about budget compact car “Nano”. Since January 2008, when the company announced at the “India Auto Expo” that they are going to sell them for 100,000 Rupee (about 190,000 yen) , having to change the factory sites, the original plan has been delayed greatly. However, the time has come!

They named it “Nano” because, although its body is small and its price is low, it has all the necessary hi-techs in it. It is slightly smaller than Japanese compact cars but it clears the “EuroⅣ”, the European gas emission standard and is within the world’s safety standards.

The Nano’s body has an easy to produce structure broken down into modules. From the supplier, all parts will be delivered sub-assembled; so the factories do not need as much investment in facilities as in normal car production. Also, Nano is assembled in a new plant especially built for that purpose, production mix with existing vehicles does not need to be considered. A very efficient production process can be facilitated.

The group is also planning a “Franchise Chain” system with companies who want to produce Nanos by providing necessary design information and skills to build a production plant. This is to save the physical distribution cost by producing the car near its users. This is a way to diffuse the risks of excessive investment and to nurture new business.

The development of Nano was to bring the Chairman of Tata Motors Ratan Tata’s dreams to reality: when he thought about a “People’s Car”, to “turn the world automotive business upsidedown” , he wanted “ to make a 4 people car under 100,000 Rupee to provide it to everyone”, “to promote employment by making cars” and “nurture young business entrepreneurs”.

This Tata is the most respected business group in India and apart from automobiles, their business includes food, consumable goods, energy, hospitality and finance industries, IT, etc. and their existence is something people cannot live without. Also Tata Financial Group donates most of their profit to charities such as hospitals and churches. Buying a Nano means buying a part of their philosophy.
Ratan Tata says “I am not saying I will make money with Nanos but I am not going to drive the firm into bankruptcy with Nanos”. He is not making Nanos as the main business but is placing the priority on his “vision” of contributing to Indian society by making profit from the conglomeration of all the companies Tata owns.

To carry out anything, we do need our “visions”. Business profit and contribution to society seem to be incompatible but they are not. There are so many things I should be learning from the Tata Group. Keep watching out for Nanos!


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