19-01-2013, 09:32 AM
INTRODUCTION OF AUTOMOBILE INDUSTRY
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INTRODUCTION
Nicolas J. Cugnot was the first person who invented automobile in 1769. It was a self-powered, three-wheeled, military tractor that made use of a steam engine. Robert Anderson was the first to invent an electric carriage between 1832 and 1839. However, Thomas Davenport of the U.S.A. and Scotsman Robert Davidson were amongst the first to invent more applicable automobiles, making use of non-rechargeable electric batteries in 1842.The Automobile Industry finally came of age with Henry Ford in 1914 with the bulk production of cars. It first begun with the assembly lines of his car factory and then consolidated his position in the industry
INDIAN BACKGROUND:
Until the dawn of 1980‘s there were a few car manufacturers‘ like Hindustan motors, Premier automobiles etc. in the country and it was almost a seller‘s market; customers having neither the choice of models nor the delivery.
ADVENT OF NANO:
The introduction of the Nano received massive media attention due to its amazing features at a very low price. The Financial Times of London reported: "If ever there were a symbol of India‘s ambitions to become a modern nation, it would surely be the Nano, the tiny car with the even tinier price-tag. A triumph of homegrown engineering, the $2,200 (€1,490, £1,186) Nano encapsulates the dream of millions of Indians groping for a shot at urban prosperity. The car is expected to boost the Indian economy, create entrepreneurial opportunities across India, as well as expand the Indian car market by 65% according to CRISIL (The Economic times, 12 Jan, 2008). The car was envisioned by Ratan Tata, Chairman of the Tata Group and also Tata Motors, who has described it as an eco-friendly "people's car". Nano has been greatly appreciated by many sources including its adversaries and the media for its low-cost and eco-friendly initiatives which include using compressed air as fuel and an electric version (E-Nano).Tata Motors has indeed commercially launched the Tata Nano on March 23, 2009. Tata Nano initially has come in three variants, Standard, Deluxe and Luxury. The small car is priced between Rs. 1 lakh and Rs. 1.34 lakh. The dealer price is still believed to be Rs 1 lakh, but on-road price could be as high as Rs 1.34 lakh.Tata Motors in fact received 203,000 inaugural bookings with a total booking amount of Rs.2,500 crore ($502 million) for its small car Nano. Among the three variants of the car, 20 percent bookings are for the Nano Standard, 30 percent for the Nano CX and the remaining 50 percent for the top-end Nano LX, the statement added((May 4,(IANS)). Ratan Tata has fulfilled his promise of delivering the world‘s cheapest car, Tata Nano which is safe, affordable and fuel efficient at the same time. "A promise is a promise", said Ratan Tata. Nano launched by Tata Motors is going to change the face of Indian automotive industry. With this launch India has most definitely upped its presence in the global automotive industry. A lot has been talked about this car and another first has been associated with this car. Usually with the launch of a new product a company goes into a spending spree in terms of marketing of the product. However, Nano managed to get free publicity because of the hype which was associated with every move that it made. The initial 1 lakh customers which have been picked through a computer draw have advantage of promised price protection which means they will be getting the cars as per the promised launch day prices despite any adverse economic conditions in the future.
DEMAND AND SUPPLY ANALYSIS;
Initially with the launch of Tata Nano ,there was a huge demand for it due to its reasonable price .This led to a greater demand of the product than the supply, leading to a situation of excess demand ,gradually leading to rise in prices. To clear the huge demand company followed the policy of lottery system wherein first 1 lakh cars were given on the basis of lottery.
In a move that will help clear backlog, Tata Motors opened a new plant that will build the “world’s cheapest car” in the western Indian state of Gujerat.
The Sanand factory initially produced 250,000 units of the Tata Nano per year, with plans to eventually ramp up annual production to 350,000.
After the hype surrounding the Nano’s launch, demand was high and Tata collected 206,703 orders during the initial sales period. From this, 100,000 customers were chosen by a lottery. Deliveries of the cars began in July, and up till April 2010, 33,875 units have been accounted for.
The original dedicated Nano plant in Singur, West Bengal, was delayed after the automaker halted construction due to violent protests by farmers who originally worked on the land. Tata abandoned the near-complete facility in October 2008 and began building the Sanand facility on a 445-hectare plot.