Tata Motors, set up in 1945 to manufacture locomotives, is India's largest automobile company. With over 4 million of its vehicles plying in India, it not only stands out as the market leader in each segment of commercial vehicles but also takes rank among the top three passenger vehicle producers of the country. India's first fully indigenous passenger car Indica came from its stable in 1998. Though derided as the truck man's idea of what is a car, Indica came up as the largest selling car in India in segment B compact cars within 2 years of the launch. Tata Motors also earned kudos for developing India's first indigenous mini-truck Ace in 2005. It spread its operations in the UK, South Korea, Thailand and Spain through subsidiaries and associate companies. Its classic steadfast alliance with Italy's Fiat and heroic acquisition of two iconic British brands Jaguar and Land Rover have served as templates for emulation. It is the fourth largest truck manufacturer and the second largest bus manufacturer in the world.⁴ Tata trucks, buses and cars find good foreign markets incountries across Europe, Africa, Middle East, South Asia, South East Asia and South America as well. However, what has become the buzz and nudged the global auto industry to take a big look of Tata Motors is its small car Nano, lovingly nicknamed 'The People's Car', thanks to its endearingly accessible price of INR 100,000. People who were previously been unable to afford a car have now the exciting prospect of driving one. First unveiled at the ninth Auto Expo in New Delhi on January 10^th 2008, Tata's Nano is perhaps the world's most awaited car since the Model-T of Ford.

Nano Mania

As Tata's Nano was launched in Mumbai on March 23^rd 2009 marking a finale to an endeavour that started 6 years ago, Tata Nano website received around 30 million hits during the period ending April 25th 2009 (the date of the closure of the booking), implying almost 1 million hits a day. The day of its commercial launch has generated among thousands of families a new hope of ushering in a four-wheeled transportation in their driveways. Nano has come to represent a pleasant break from the past. It has allowed people, who could hitherto afford up to a motorcycle, to dare to dream of buying a car.

In India, millions often convey on motorbikes and scooters their entire families, perched precariously, often with luggage. This common observation - inducing heartfelt sensibility and pragmatic business sense that there is a crying need for a people's car - prompted Ratan Tata to take initiative in manufacturing one. When others had nodded 'No' to signal its impossibility, Ratan Tata came to conjure up 'Nano' to make the mass-aspired small car a smashing hit. Tata was proved right when people went crazy in their quest for the conquest of Nano to satisfy their want for a convenient, safe and all-weather affordable personal family transport. So much was the mania for Nano that for the first time in its history, Tata Motors had to gladly charge an application fee (INR 300). The number of bookings registered during the prescribed period of 17 days from April 9^th 2009 to April 25^th 2009 more than doubled the initial production capacity. 2.03 lakh bookings for Nano, which fetched Tata Motors nearly INR 25,000 million5, have necessitated the selection of the first 1 lakh owners through a lottery. Among the three variants of the car (Annexure I), the base version accounted for 20% of the bookings, the mid-level CX variant 30% and the top-end LX variant the remaining 50%. The delivery of Nano is expected to commence in July 2009.

Tata Nano gives a warranty of 18 months or 24,000 km whichever is earlier. It provides the usual three rounds of free service based upon distance and time whichever is earlier. The first round of free service is for 1,000 km or 1 month, the second for 5,000 km or 6 months and the third for 10,000 km or 1 year. Subsequent rounds of service are paid ones and are recommended to be done on every 10,000 km covered.

The three variants of Nano come with various colour options. While the low-end Nano base is available in three colours such as Bright red, Ivory white, Summer blue, the high-end Nano LX is also available in three colours but different from the above such as Champagne gold, Lunar silver, Sunshine yellow. The medium version Nano CX is available in five colours, which include all the above mentioned colours except Sunshine yellow. Nano is the cheapest car, only in terms of cost and price but not in terms of quality and consumer satisfaction. Its technical specifications (Annexure II) are no way inferior. Its emission norms are Euro-IV, Bharat Stage-III compliant and its safety norms have tested frontal crash. With a turning radius of only 4 metres, Nano can cutely execute a 360- degree turn even in its own tiny shadow.

As compared to Maruti 800, it is 8% smaller on outside but 21% larger inside. Even though it is the most affordable car of the world (Exhibit II), Nano has presented features some of which are not available in Suzuki's Maruti 800 and Alto or even Hyundai's Santro

Nano has a luggage space of 80 l provided behind the rear seat. The rear seat of Nano being a 100% bench seat, it lends itself to folding to create additional luggage space of 420 l.6 With its body made of sheet metal and engine innovatively mounted in the rear, Nano offers not only fuel economy but also proportionately more interior space

Tata Motors is poised to revolutionise the face of automotive industry. Not only would many two- wheeler users switch to four wheels, but also the companies that are planning to launch a budget family car have to relook and recast their cost-pricing structure. Consumer surplus is a deciding factor in purchasing a product. What the consumers would be willing to pay over and above what they are actually asked to pay marks this surplus. The masses have been mesmerised by the low offer price of Nano, which has incredibly not gone low on style quotient thanks to Tata's highly innovative cost-cutting approach. One windshield wiper, a single piece shiny hard plastic dashboard and 12-inch steel rims for tyres are some of these quickly noticeable cost-cutting measures. "Nano is frugally equipped but brilliantly engineered."7 This is reflected in Tata Motors' filing of several patents relating to the design of Nano. Its power train design alone has 34 patents.8 Incidentally, Nano also received a long drawn free publicity because of the political controversies surrounding the land acquisition methods at West Bengal's Singur from which the project was finally shifted to Gujarat's Sanand.

While many go gaga over Nano, eulogising its potentiality to generate a lot of consumer surplus and well-being for Indians, there is no dearth of cynics who conjure up a scary scene of traffic congestion and environmental hazards that the little Nano is greatly capable of perpetrating by promoting mass private transport. Apologists for Nano, however, point to greater per capita harm coming from two wheelers and auto rickshaws that Nano is all set to supplant. Moreover, the bare bone features of Nano may drive away the potential consumers into the market for better featured second-hand cars. Whether Nano will be a means for pollution or solution only the future will tell. And there hangs the poser whether India's societal consumer surplus will be raised or reduced.

Exhibit II Price Comparison of Nano with Its Nearest Rivals Standard Version of The Car Starting ex-Show Room Price ( ex-Mumbai) (in INR) Tata Nano 1,34,000 Maruti 800 1,99,000 Maruti Alio 2,40,000 Hyundai Santro 2,67,508 Compiled by the author Exhibit III Comparison of Nano against Maruti 800, Alto and Santro Nano Maruti 200 Alta Santro Base Model Nano MROO Sid Alto Sanino Non-AC Plus Air Conditioner Nano CX/LX MROO AC Allo LX/LXi Santro GL/GLS Plus Heater Nano CX/LX Feature Not Available Alto LX/LXi Santro GL/GLS Plus Tinted Glasses Nano CX/LX MROO AC Alto LX/LXi Samin GL/GLS Fully Loaded Nano LX MROO AC Alto LXi Santro GILS Plus Front Power Nano LX Feature Not Feature Not Santno GLS Windows Available Available Plus Body Coloured Nano LX Feature Not Available Feature Not Santro Bumper, Door Handle Available GLS (Only Body & ORVM Coloured Bumper Plus Central Locking Nano LX Feature Not Available Feature Not Santro GILS Available Plus Front & Rear Nano LX Feature Not Available Feature Not Feature Fog Lamp Available Not AvailableAnnexure I Variants and Features of Tata Nano Features/Variants Nano Base Nano CX Nano LX AC with Heater Yes Yes Front Power Windows Yes Cup Holders in Front Yes Console IRVM Plain Plain Antiglare Gear Shift Console Basic Basic High End Console with Provision for Mobile Charger/ Cigarette lighter Magazine and coin Moulded Door Trim Holder on all doors Map pocket Integral Fabric pocket Fabric pocket Separate plastic trim with Driver & Co-driver Seat Front Seat Headrests Integrated Integrated Integrated Rear Seat Headrests Integrated Integrated (With Nap Rests) (With Nap Rests) Sunvisor on Driver & Yes Yes Yes Passenger side Driver Seat with Slider Yes Yes (With Recliner) Yes (With Recliner) Passenger side Seat Yes (With Recliner) Yes (With Recliner) with Slider Front assist grips Yes Yes Yes Rear assist grips Yes Yes Yes Head lamp levelling Integral feature Integral feature Integral feature through through innovative through innovative innovative suspension suspension design suspension design design Low Fuel Warning Lamp Yes Yes Yes Rear Seat Folding Yes Yes Yes Intrusion beam Integral feature Integral feature Integral feature through through innovative through innovative innovative door system door system design door system design design Radial Tubeless tyres Yes Yes YesAnnexure II Technical Specifications of Tata Nano Car Length 3,099 m Width 1,495 mm Height 1,652 mm Engine 2 cylinder Capacity 624 cc Power 35 PS Fuel Injection Multi Point Fuel Injection (MPFI) Fuel Type Petrol, diesel versions Body Type Sheet Metal Seating Capacity 4 ( Four) Mileage 20-22 Kmpl (City drive) 26 Kmpl (Highways) Top Speed 105 Km Emission Norms Euro-IV, Bharat Stage-III compliant Safety Norms Frontal Crash Tested Versions One Standard and Two Deluxe Compression ratio 9.7:1 Power to weight ratio 0.58 Acceleration 0-60 kmph: & secs Transmission Synchromesh on all forward gears, sliding mesh on revers gear with overdrive on 4* gear Gearbox 4 forward speeds, I reverse, all forward gears synchronised Suspension Front Independent mcpherson strut, shock absorber Suspension Rear Semi trailing arm, coil spring with gas filled shock absorber Brake Type Dual Circuit, Vertical Split operated by tandem master cylinder Front Brake 180 mm drum Rear Brake 180 mm drum Tyre Type Radial & Tubeless Contd.Front Tyre Size 135/70 R12 Rear Tyre size 155/65 R12 Min. Turning circle radius Am Ground Clearance 180 mm Fuel Tank Capacity 15L Battery Position Semi scaled under the driver's seat