What have the Tata’s Achieved with the Nano?

From a casual outlook - Tata Nano has succeeded in satisfying the Euro 4 emission norms, safety tests and still achieving the target of sales price of 100, 000 Indian Rupees. Often called as the one man’s dream (Ratan Tata). But from a careful analysis, Tata Nano has achieved a lot more than just that.

The evidence that it is still possible to achieve profit in making the car creates a new price benchmark for competitiveness for the automotive industry (with Renault following them and Bosch creating components and systems for Nano – the heat is definitely ON). It has created interest in public who are using two wheelers for transportation to think about a car for themselves – thus “car” is not only for the upper middle class anymore. The debate or the quest for better roads for the use of the Nano (to avoid congestion) or better public transportation (to avoid using the car) is now more driven from a common man hence the government needs to respond to this.

Ratan Tata will put “Indians on wheels” similar to Henry Ford a hundred years ago who put “America on Wheels” and is definitely a milestone in Indian automotive history. Just as Henry Ford initiated in the aggressive use of scientific management in the automotive industry, similarly the philosophy of aggressive target pricing and managing the supply chain for that pricing will give new principles and process learning for Tata that can be applied in other areas.After T model production system, Toyota Production System It could be the 3^rd “T” hitting the industry – Tata Auto Supply Chain.

Naveen