Nano will not affect two-wheeler market: Hero Honda MD

Posted on March 31st, 2009 in News by admin

New, Delhi, Mar 27 : Dispelling apprehensions over the future of the two-wheeler segment with the launch of Nano, Pawan Munjal, the Managing Director and Chief Executive Officer of Hero Honda Motors, said that it will have no bearing in the two-wheeler market.

“I am not saying there will be no impact at all. Some two-wheeler aspirants definitely move to a car. But there will be no major impact. There is not change in the market,” Pawan said this on the sidelines of a meeting hosted by the Confederation of Indian Industry (CII) here on Thursday.

Hero Honda Motors promoted by the Munjals of Hero Cycles fame, is among the majors of two-wheeler manufacturers in India.

Tata Motors launched its much-awaited Nano car on Monday.

On that occasion, Ratan Tata, Chairman of Tata Motors had reportedly asserted that the car Nano would be available with the promised price tag of rupees 100 thousand.

It was launched six months behind schedule in a subdued market, with production in the first year severely constrained and the threat of further ratings downgrades hanging over the company.

Amidst all these trends, the company has said that it will take over a year to deliver the first 100,000 cars.

Since the Nano was first shown, the main production plant had to be moved from Singur in West Bengal following protests over the acquisition of agricultural lands by the State Government for the setting up Nano factory.

Consequently, Tata Motors posted its first loss in seven years with its shares declining by 70 per cent and its credit rating downgraded.

Source: Newkerala.com

Nano effect: 3-wheelers to be cheaper?

Posted on March 31st, 2009 in News by admin

Bajaj Auto , the country’s largest three-wheeler passenger vehicles manufacturer, said it had enough leeway to reduce the price of its popular autorickshaws to counter any shift by its consumers to Tata Motors’  Nano.

While the Nano is priced at Rs 1.12 lakh (Rs 112,000, ex-showroom Pantnagar), Bajaj Auto’s RE petrol variant costs about Rs 90,000, while its diesel variant is pegged at Rs 1.2 lakh (Rs 120,000 ex-showroom).

“There’s enough room in our profit margins to lower the prices of our three-wheelers in the future,” said Sanjiv Bajaj, executive director of Bajaj Auto, on the sidelines of the CII National Conference last week. He was responding to a question on the impact of the Nano’s entry on the autorickshaw market.

The Nano’s base price tag of Rs 1 lakh (Rs 100,000) for the basic model is, says Tata Motors, applicable for only the first 100,000 units.

Industry experts, including Maruti Suzuki chairman R C Bhargava, have said three-wheeler customers will increasingly shift to the Nano as an alternative mode of transport which is safer and more comfortable than autorickshaws.

Bhargava has said that is primarily because the Nano is priced at about the same level of a three-wheeler.

Analysts also say Bajaj can drop prices without any problem. “Bajaj Auto has been in the three-wheeler segment for 60 years. Which means their plants are fully depreciated and they can afford to lower the prices, which other manufacturers can’t do,” says a top executive from a competing three-wheeler brand.

“The highest margins derived by Bajaj Auto comes from its three wheeler segment,” says Vaishali Jajoo, auto analyst at Angel Broking.

In the three-wheeler segment, comprising both passenger and goods vehicles, the former is 76 per cent. Of this, Bajaj Auto enjoys a 46 per cent market share, Piaggio Vehicles has 38 per cent and Mahindra, 10 per cent.

Broadly, the passenger vehicle segment is divided into two categories, three-seaters and six-seaters. Three-wheeler executives say the introduction of multi-purpose vehicles like Tata Motor’s Ace Magic has already dented sales of autorickshaws at the top end of six-seaters used in suburban areas and priced around Rs 1.8 lakh (Rs 180,000) each.

The segment is currently dominated by Piaggio, Bajaj and Mahindra. The same, they think, could happen to the popular three-seaters that constitute the bulk of sales in this segment.

However, Bajaj says there won’t be a major shift to the Nano from autorickshaw owners. “If you take issues like operating cost and mileage per km, a three-wheeler wins. Operating costs matter to the owner in this segment,” says Bajaj.

“A large number of the three-wheelers are used in rural areas. Much can’t be said about the Nano’s performance on rugged roads at this stage. Further, there’s the issue of obtaining a travel permit to run the Nano as a public carrier,” said another executive.

Source: Rediff

Buyers can seek Nano loan from any bank: SBI Chairman

Posted on March 29th, 2009 in News by admin

Jamshedpur (PTI): Buyers can seek loans from any bank to buy Tata Motors’ Nano car despite the company signing a deal with State Bank of India (SBI), SBI Chairman O P Bhatt said on Saturday.

“People can seek loans for the Nano from any other bank as well. The tie-up is meant to manage all booking points, including distribution and collection of applications,” Mr. Bhatt told reporters here on the sidelines of a programme at XLRI on Saturday night.

According to him, the deal was signed as it is not possible for any company to go to hundreds of banks to handle such a huge distribution and collection of applications. Though most of the application collection would be done by SBI, others could also do the same, Mr. Bhatt said.

Mr. Bhatt said SBI would charge 10 per cent interest on car loans to buy the Nano in the first year and later the rate would be the same as other automobile loans.

2009 Tata Nano – First Drive Review

Posted on March 29th, 2009 in News by admin

You need to be reprogrammed in order to test the Tata Nano. Normal references do not apply. For the moment, disregard the Nano Europa that appeared at the recent Geneva auto show, as well as the possibility of a U.S. version. Instead, it is the simplest, most basic model that counts. Available for as little as $2400, it’s the cheapest new car available anywhere in the world.

We must not forget that the Nano is first and foremost a car for India, a country of about one billion people where fewer than two percent own a car. It was instigated by Ratan Tata, the chairman of the Tata conglomerate, India’s biggest corporation, in a gesture that looks as much philanthropic as business savvy. Watching the way whole families travel on motorcycles—rider, pillion passenger, and two children hanging on—and noting the terrible toll in road deaths involving two-wheelers, Tata called for a safer four-wheeled vehicle that bike riders could afford.

Small Car, Big Ambitions

Everyone knows that small, cheap cars mean small profits, and for Tata the margin on the Nano at its entry price is, well, marginal. But look at the big picture, and perhaps we can see the Ford Model T or Volkswagen Beetle for the 21st century. Through the Nano, Tata of India hopes to become one of the biggest players on the global automotive stage.

The “people’s car” of today primarily has to be for first-time buyers with average incomes way below those of industrialized Western countries. Ratan Tata’s brief for the Nano was that, apart from being cheap to buy, it must be a “proper” car capable of accommodating five people, it must exceed Indian safety and emissions requirements, and it must be economical to run. One look at the Indian market told the Tata engineers that the cost objectives could not be met by stripping out an existing conventional car. The cheapest car on the Indian market, the Maruti 800, is based on an age-old Suzuki minicar and costs twice as much as the Nano.

Keep It Simple

So, appropriately, Tata went back to the basics. Every component and every system was analyzed to find the cheapest solution that would achieve the required function, strength, and ease of production. Nothing was taken from an existing Tata model. Nothing superfluous would be included. To achieve the required cabin space within a small footprint, the design became a tall monobox with a sloping front. The 0.6-liter two-cylinder engine and four-speed manual transmission are tucked away under and behind the rear seat, installed transversely in a drop-down cradle that includes the final drive, cooling and exhaust systems, and rear suspension. The car’s structure is a welded steel monocoque with stamped steel outer panels, which turned out to be more cost effective than plastic.

The inside of the Nano in its simplest form is really quite a shock. Climb into the driver’s seat—it adjusts fore and aft but does not recline—and you are confronted by a small steering wheel, three pedals, a gear stick, one column stalk, and a speedometer with an inset fuel gauge. That’s it. No switches, no air vents (there’s no heater), no pockets or lockers, no trim on the painted metal of the windshield pillars. The nothing-superfluous philosophy continues as you get on the move. There is no power steering—although with a curb weight of about 1300 pounds, the narrow tires, and the engine at the back, that’s not a hardship. Drum brakes on all four corners with no vacuum booster or ABS give an old-fashioned pedal feel. Tiny 12-inch wheels, used to save weight and reduce the cost of tire replacement, are adequate to cope with the 35 hp the engine produces.

Better than a Scooter

You and your passengers have plenty of room, as the Nano wins in space utilization. It is only 122 inches long—that’s about two feet shorter than a Mini—but tall (65 inches), so four six-footers can sit upright with room to spare. The trunk isn’t very big and is accessed only by folding the rear seat forward; there’s no opening tailgate. The suspension is independent front and rear with no anti-roll bars—they would add weight and expense—and Tata’s engineers admit that deciding on the spring rates was tricky. They needed to avoid attitude changes, even in a “worst-case scenario” of a driver up front and three passengers and luggage in the rear. So the springing is firm, the ride on India’s broken byways is relatively hard, and the setup, which includes wider tires at the rear, is designed to provide safe terminal understeer.

The Nano isn’t in any sense a driver’s car. The little all-aluminum two-cylinder isn’t quiet, but it is smooth (it has a balance shaft), and the unusual engine note hardly changes as the revs rise, so you learn to judge when to change gears by the road speed. There is no tachometer, of course, but an ignition cutout operates at 5600 rpm, which equates to 19 mph in first, 37 mph in second, and 59 mph in third. Fourth gear is an overdrive, and the Nano’s maximum speed is governed at 65 mph. The little Tata is quick enough to keep up in the chaotic traffic of Indian towns but struggles on inclines, particularly if the optional air conditioner (it comes with the second trim level) is in operation. The clincher, though, is fuel economy, which averages about 55 mpg, according to the Automotive Research Association of India. In its home market, for a Nano buyer graduating from a motorcycle, the cost of fuel is a significant factor.

Delivering on the Promise

Interest in the Nano in its home country is phenomenal. The day before its official launch in Mumbai, we took a Nano for an extended drive in and around the city of Pune, the home of Tata Motors, and were constantly chased by motorcyclists wielding camera phones. Everyone we met seemed to want a Nano or knew someone who intends to order one. Tata expects so many orders that it will make a random selection of applicants to receive the first 100,000 cars. The prices for the three Nano trim and equipment levels (base, CX, and LX) range roughly from $2400 to $3500, although they can vary in either direction by a couple hundred dollars depending on the Indian state and city in which the car is purchased.

As a car for India, the Nano is excellent, even brilliant. However, we can’t be so sure of its prospects in Europe and the U.S. Most of the things that were cast aside when designing the car will have to be replaced if it is to meet Western safety legislation, and export models will have a larger, 1.0-liter three-cylinder engine. The resulting sticker will be more than double the Indian price for the top model. The Nano could still be the cheapest new car available, but it will be a lot closer in price to more familiar, conventional cars at the bottom of the U.S. market.

Source: Caranddriver.com

Factsheet on the Tata group

Posted on March 29th, 2009 in News by admin

A factsheet on Tata group, India’s largest industrial house founded by Jamsetji Tata in the mid-19th century, which Monday announced the commercial launch of their small car Nano:

Past titans: Jamsetji Tata, Sir Dorab Tata, Sir Ratan Tata, J.R.D. Tata, Naval Tata

Chief Executive: Ratan Naval Tata, 71

Headquarters: The landmark Bombay House in downtown Mumbai

Promoter companies: Tata Sons and Tata Industries

Shareholding: Majority of the equity capital of Tata Sons is held by philanthropic trusts endowed by members of the Tata family

Decision makers: The Group Corporate Centre comprises Ratan Naval Tata, N.A. Soonawala, J.J. Irani, R.K. Krishna Kumar, R. Gopalakrishnan, Ishaat Hussain, Kishor Chaukar, Arunkumar Gandhi and Alan Rosling

Number of companies: 98, of which 27 are listed

Areas of interest: Seven business segments covering information systems and communications, engineering, materials, services, energy, consumer products and chemicals

Group turnover: $62.5 billion in 2007-08

Market capitalisation: $60 billion

Shareholder base of listed companies: Around 3.2 million investors

Countries of operation: Over 80, spread over six continents

Employees: 350,000

Some global companies acquired: Tetley of Britain in 2004, Daewoo Commercial Vehicles of South Korea in 2004, Eight O’clock Coffee of US in 2006, Anglo-Dutch Corus in 2007, Jaguar and Land Rover in 2008

Some popular brands: Tetley (beverages), Tanishq (jewellery), Titan (watches), Voltas (cooling appliances), Rallis (agro-chemicals), Westside (garments), Tata Indicom (telecom), Taj Air (in-flight catering), Nelco (electronics)

Some brand ambassadors: Tennis ace Sania Mirza, cricketers Saurav Ganguly, Yuvraj Singh and Irfan Pathan, Formula One racer Narain Karthikeyan, and actors Aamir Khan and Naseeruddin Shah

Some major companies: Indian Hotels, Tata Consultancy Services, Tata Tea, Tata Coffee, Tata Motors, Titan, Rallis India, Voltas, Tata Chemicals, Tata Steel, CMC, Tata Communications, Tata Elxsi, Tata Power, Tata Investment, Tata Metaliks, Tayo Rolls, Tinplate, Trent, Tata Teleservices and Nelco

Source: Indiaenews

UN climate change head says nothing wrong with Nano | Tata Motors …

Posted on March 26th, 2009 in News by admin

The Executive Secretary of the United Nations Framework Convention on Climate Change (UNFCCC), Yvo de Boer, said a day after the Tata Nano’s launch that there.

Read the original here:
UN climate change head says nothing wrong with Nano | Tata Motors …

The Tata nano aftereffects – funny cartoon |Website designer Kochi …

Posted on March 26th, 2009 in News by admin

I got these really funny cartoons in a forwarded e-mail. – Funny Part of Tata Nano Nanolution, One lakh Mantra, Tata NANO on the road and comics

Here is the original post: 
The Tata nano aftereffects – funny cartoon |Website designer Kochi …

The Tata Nano is a Market Changer – but would you Buy it?

Posted on March 25th, 2009 in News by admin

Article that looks at the financial and auto market implications of the Tata Nano and asks the question – would you buy a Nano?

Original post:
The Tata Nano is a Market Changer – but would you Buy it?

The Tata Nano is a Market Changer – but would you Buy it?

Posted on March 25th, 2009 in News by admin

Article that looks at the financial and auto market implications of the Tata Nano and asks the question – would you buy a Nano?

Read the original: 
The Tata Nano is a Market Changer – but would you Buy it?