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Tata Motors History

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Have you ever seen “Micro” cars driving down the road and wonder what lead to the development of such a seemingly odd vehicle? To truly understand the culture within Tata Motors and its interaction with the environment that lead to and power the Nano’s past success and future potential we need to look as some key cultural elements. This paper will take a closer look into the inspiration that drove the development of the Nano, as well as the price, quality and risks associated with its introduction to India’s market. Furthermore, we will look at some lessons learned as we discuss the future of low cost cars and Tata Motors strategy as they move into US and European markets. Lastly I will describe what I believe the keys to success will be.…show more content…
The answer to this lies in culture and the needs of people. The vast majority of all products are created to meet the needs of people, whether the need is a cultural, economic, or physical. In India and many other countries many families have very limited transportation. For some it is a family horse or donkey for others it’s a bicycle. Other families may have a single motorcycle or scooter that they fit three or four people on, including small children. The reason many only have these forms of transportation is because of the high cost and availability of cars and trucks. Tata Motors “Nano” Nicknamed the “people’s car” was originally designed as merely a replacement for motorcycles as the main transportation for the average Indian family (Bickerstaffe & Honeywill, 2008). The Average Indian Family became the inspiration for Tata’s new form of transportation, a micro car witch is the first of its…show more content…
“There is growing concern about climate change and environmental impact that also affect the auto industry. “Boot says: There are environmentally led legislations, which is forcing the size and shape of cars to change (as cited by Reidy, 2008)." The political and regulatory pressure put on auto manufacturers made many rethink how they designed cars. This lead to smaller engines improved safety and emissions. With all these changes going on in the industry it set the stage for a whole new approach to transportation especially in the areas of the world where traditional cars where still not practical. This is what ultimately lead to the development of Tata’s “Nano” the people’s