Tata Nano: the World’ S First Rs. 1 Lakh Car

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One rainy day in Bangalore India, Ratan Tata, Chairman of India’s Tata Group on his way to the airport spotted an entire family on a two-wheeled scooter. This was not out of the ordinary in India for families to travel this way. Unexpectedly, the scooter skidded and overturned in front of Tata’s car. Tata ran over to the family. Suddenly Tata dreamed of the idea of inventing an affordable car that would meet India’s requirements. Tata wanted the car to be priced around $2,200. Regardless of the challenges that he might face due to an increase in parts and commodity prices during the time of development. Ratan Tata decided to be a part of the project along with Ravi Kant, the Vice Chairman of Tata Motors to ensure the project received senior support. When the Nano project started the least expensive car on the market was valued at $5,000. It was clear that trying to make a car with the standards, performance, and a low price point to compete with existing cars was not going to be easy. So Tata and Kant decided to benchmark the Nano with a two-wheeled scooter. The Nano project faced many design challenges to reduce the cost and weight of the car. Tata’s suppliers thought of the obstacles as exciting. They were given weight and cost restrictions that made them decided on some the features to eliminate. This is how the Nano became a radical innovation. In March of 2009 the Nano project was invented, at its intended price point and meeting all of India’s government safety regulations. Shortly after, there were several incidents of cars catching on fire that caused some bad publicity for Nano. This caused Nano to receive a bad reputation. In the end, Tata did fulfill his dream to invent a car with a low price point and a modified design. The Tata Nano is a radical innovation that was developed after an entire family overturned on a two-wheel scooter. The Nano is…...

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