TATA Nano Target Costing

MANAC PROJECT TATA NANO: TARGET COSTING

Rishi Kalantri

201128

Sahil Khurana

201137

Sharad Rastogi

201148

Sidharth Sehgal

201158

Udit Bubna

201168

Vaibhav Aggarwal

201171

FMG20C TANO: Target Costing

MANAC PROJECT TATA NANO: TARGET COSTING

Rishi Kalantri

201128

Sahil Khurana

201137

Sharad Rastogi

201148

Sidharth Sehgal

201158

Udit Bubna

201168

Vaibhav Aggarwal

201171

FMG20C TANO: Target Costing

Contents EXECUTIVE SUMMARY .................................................................................................................................................. 6 TARGET COSTING............................................................................................................................................................. 7 TATA NANO – THE INTRODUCTION ........................................................................................................................ 9 A BREAK THROUGH CAR............................................................................................................................................ 11 COST CUTTING FEATURES ................................................................................................................................... 12 TARGET PRICING THE NANO ................................................................................................................................... 13 Product Features....................................................................................................................................................... 13 Dimension .................................................................................................................................................................... 13 Engine specifications for Tata Nano ................................................................................................................. 14 Safety features for Tata Nano – The 1 Lakh car ........................................................................................... 14 How green is Tata Nano? ....................................................................................................................................... 14 IDEA GENERATION OF NANO ............................................................................................................................. 14 THE COST – THE TARGET ........................................................................................................................................ 16 THE COST REDUCTION PARADIGM....................................................................................................................... 17 Value Engineering Alternatives: ......................................................................................................................... 17 Now the question was, “how much to produce” .......................................................................................... 17 PRODUCT DEVELOPMENT ................................................................................................................................... 18 The Final verdict: THE CAR COST IS Rs 1 lac .................................................................................. 18 ENGINEERING IT ........................................................................................................................................................... 19 Costs, outsourcing and beyond ........................................................................................................................... 20 Cost Price Structure ................................................................................................................................................. 21 Safety Issues................................................................................................................................................................ 22 STEPS TO ESTABLISH TARGET COST ................................................................................................................... 23 1.

Re-orient culture and attitudes. ........................................................................................... 23

2.

Establish a market-driven target price.................................................................................. 23

3.

Determine the target cost..................................................................................................... 23

4.

Balance target cost with requirements. ............................................................................... 23

5.

Establish a target costing process and a team-based organization. ..................................... 23

6.

Brainstorm and analyze alternatives. ................................................................................... 23

7.

Establish product cost models to support decision-making. ................................................ 23

8.

Use tools to reduce costs. ..................................................................................................... 24

9.

Reduce indirect cost application. .......................................................................................... 24

10.

Measure results and maintain management focus. ......................................................... 24

CHALLENGES FACED DURING THE DEVELOPMENT OF TATA NANO.................................................... 24 Question of Safety ..................................................................................................................................................... 25 Mass Motorization .................................................................................................................................................... 25 Used car market effects .......................................................................................................................................... 25 Cases of Fire ................................................................................................................................................................ 26 Competitors................................................................................................................................................................. 26 APPENDIX ......................................................................................................................................................................... 27 Target Costing Pressures on New Products .................................................................................................. 27 CONCLUSION ................................................................................................................................................................... 27 SPECIFICATIONS ....................................................................................................................................................... 28 Outsourced Parts Supplier Information .......................................................................................................... 29 COMPARISON ............................................................................................................................................................. 31 TATA NANO PRICES ON THE TATA MOTORS’S WEBSITE ...................................................................... 31 TATA NANO OFFICIAL FINANCERS AT LAUNCH ........................................................................................ 32 THE APPLICATION FORM ..................................................................................................................................... 34 THE ACCESSORIES PRICE LIST ........................................................................................................................... 35 GLOSSARY......................................................................................................................................................................... 36 REFRENCES...................................................................................................................................................................... 39

EXECUTIVE SUMMARY This report explains the concept of target costing through the case of Tata Nano. Target costing is the process of determining the maximum allowable cost for a new product and then developing a prototype that can be profitably made for that maximum target cost figure. A number of companies--primarily in Japan--use target costing, including Compaq, Ford, Isuzu Motors, ITT, NEC, and Toyota etc. The target costing for a product is calculated by starting with the product's anticipated selling price and then deducting the desired profit. Following formula or equation further explains this concept: [Target Cost = Anticipated selling price – Desired profit] The product development team is then given the responsibility of designing the product so that it can be made for no more than the target cost. In case of Tata nano the company decided on manufacturing a car that would be affordable for the lower segment class of the Indian population. It basically aimed at families with two wheelers and thus came down to engineering a car that would be sold for just a lakh. Then the target cost was exacted to about Rs 65000 per unit. A number of steps were taken to ensure that the cost remains within the target decided such as one windscreen wiper instead of the usual pair, No power steering, unnecessary due to its light weight, three lug nuts on the wheels instead of the usual four, Only one wing mirror, No radio or CD player, No air conditioning etc.

TARGET COSTING Target costing is defined as a cost management tool for reducing the overall cost of a product over its product life cycle. Management utilizes this pricing technique to meet both the demands of its customers as well as company profit goals. Target costing is particularly popular among Japanese firms such as Toyota, Nissan, Toshiba and Daihatsu Motor in various industries such as automobile manufacturing, electronics, machine tooling, and precision machine manufacturing. As Japanese tastes became more diverse, assembly-oriented production grew in popularity. This growing demand for a diverse range of products shortened product life cycles. With shorter product life cycles more focus is placed on the costs occurring at each phase (development, planning and design.) Compared to traditional standard costing approaches in which an estimate of product, general administrative, marketing, and distribution costs is taken into consideration, target costing takes on a more proactive approach to pricing. Traditional costing determines cost based on the design of goods, adds a markup and establishes a price. In comparison, the marketplace directs target costing by first setting a selling price, then subtracting target income and finally reaching a cost. Traditionally, a cost figure is obtained, implemented and once found to be poorly configured, sent back to management and engineers for reworking of production processes and cutting of costs. In comparison, target costing utilizes costing information and focuses on the best possible price up front, preventing wasted time on after-the-fact discussions concerning design and re-engineering of the product. The decision making process involves a cross functional team, in which employees from various departments (Production, Engineering, R&D, Marketing, and Accounting) are given the responsibility of determining an acceptable market price and corresponding Return on Sales, as well as a feasible cost in which a given item may be produced. In order to minimize costs, team members focus on eliminating non-value-added costs of the process, improving product design and modifying process methods. Target costing, in particular, emphasizes the reduction of costs during the planning and design stage of the product life cycle since the majority of product cost is determined at this stage. In comparison to traditional product costing methods, target costing allocates more of the total cost to the development stage, simultaneously reducing costs during the production stage. A number of cost-engineering techniques are used in the cost reduction process. Just-in-Time, Total Quality Control, Material Requirements Planning and Value Engineering are among such methods promoted by target costing. With the increased popularity of assembly-oriented industries, Economic Order Quantity analysis, a traditional means of keeping certain amounts of inventory on hand, became less useful. Instead, many firms, realizing the dangers of housing high inventory, turned to Just-InTime and Material Requirements Planning. JIT and MRP provided a great advantage to these companies that manufacture high variety, low-volume products.

Value engineering involves the design of a product after gathering input from employees and from various departments within a company, each offering a different perspective on possible cost minimization tactics. Value engineering considers all aspects of the value chain and frequently involves individuals outside of the company such as suppliers in order to reach a decision that encompasses the most successful combination of price and quality. Total Quality Control is a Japanese process that initially developed in the United States as a method of Quality Control. Inspection is the main issue that distinguishes between the two. TQC incorporates QC (inspection) activities throughout a company, rather than in isolation within specific departments. Initially a project is either accepted or rejected based on marketability and cost and profit data. Once a project is accepted, the engineering department constructs an engineering development plan. This plan considers all aspects of product cost up-front. Target profit is then subtracted from expected sales to reach an estimate of allowable cost. In order to successfully reach this allowable cost, a great deal of effort is required from each department to tighten overall cost. Individual processes are evaluated in order to direct efforts toward the most valuable and feasible cost saving areas. The prevalence of assembly-oriented products along with shortened product life cycles has contributed to the success of target costing. Many firms have turned to target costing as a way of improving the price and quality of their products, creating a benefit in terms of a company’s profits as well as increased customer satisfaction. Target costing adds value to the production process by eliminating non-value added activities, thus paving the way for decreased costs passed on to the consumer. Target costing enables companies to ascertain a more realistic price as well as strengthen competition among firms to offer quality products at lower costs.

TATA NANO – THE INTRODUCTION The Tata Nano is a low-cost, rear-engine, four-passenger city car built by the Indian company Tata Motors. Aimed primarily at the Indian domestic market, it is an exemplary example of Gandhian engineering, a concept involving deep frugality and a willingness to challenge conventional wisdom. Tata Motors began selling its "one-lakh car" in March, 2009. The cheapest car in the world today, with a price little more than US $2,000, the Nano is within reach of many Indian families who could not previously afford an automobile. In 2008 the Financial Times 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." Nano is the SI prefix for one-billionth, and the word is used colloquially to mean "very small". The nickname, "one-lakh car" is due to the Nano's purchase price of near 100,000 (one lakh rupees). No other car launch in the history of Indian auto industry has received as much global press as the "people's car", the Tata Nano. For good reason. A report from Business Today No other car promised to revolutionize motoring as the Nano has. Clever marketing apart, some frugal and out-of-the-box engineering has gone into the making of Nano. BT's Krishna Gopalan and Kushan Mitra met the Nano's design team at the Engineering Research Centre in Pune to put together this report. It's not yet a week since Ratan Tata unveiled his dream car at the Auto Expo in Delhi to unprecedented global media, well, hysteria, but at Tata Motors' sprawling plant in Pimpri near Pune, it's business as usual. There are no 'we've-done-it' banners festooned inside or outside the plant, no puffed-up chests striding around the facility, or even smug grin on anyone's face. At the south-western corner of the 160-acre facility, home to the Engineering Research Centre, where a young chief engineer and his team of 500-odd engineers have slogged over the last four years, putting in 12-14 hours a day, six days a week, there's even less of back-patting. Instead, Girish A. Wagh, barely 37 years old, is thinking five years ahead - he's already got some designs ready for the small car, Nano, variants that Tata Motors could offer in the years ahead. They've just created automotive history, that too out of one of the most unlikely places on earth. They've taken their Chairman Ratan Tata's dream - much like what Henry Ford had in the beginning of the 20th century in the US-of offering Indians ultra low-cost cars and turned it into a reality. The "people's car" unveiled on January 10 at the Auto Expo was stunningly good looking for the price tag it sports: a bare Rs 1 lakh, or $2,500, for the base model. The feat has so shaken the automotive world-from Detroit to Stuttgart to Nagoya-that Tata Motors' rivals, who never really considered it as a serious threat in passenger cars, are scurrying back to their own drawing boards.

That's hardly surprising. At Rs 1-lakh, the Nano is the world's cheapest car and holds out the same promise as Ford's Model-T did when it was launched in 1908 at a price of $825, and which is to make motoring affordable to millions of Indians when it hits the road in September or October this year. Even its 'deluxe' model, featuring air-conditioning and power windows, won't cost more than Rs 1.2 lakh on road-a good Rs 80, 000 cheaper than the cheapest car currently in the country, the Maruti 800.

A BREAK THROUGH CAR The man in charge of the small car project is Girish A. Wagh, who was also very closely involved with the design of the Ace, a four-wheeler that serves as a load carrier. E. Balasubramoniam is the Head of Sourcing for the project. The graduate from IIT Madras is 45 years old and was earlier with Maruti Udyog (now Maruti Suzuki). Nikhil Jadhav, 29, is possibly the youngest member of the team. Jadhav, an alumnus of IIT Bombay, is the designer on the small car project. Abhay M. Deshpande is Tata Motors' Assistant General Manager-Vehicle Integration at the ERC. Deshpande, 44, is in charge of vehicle integration, vehicle performance and chassis design. While the Nano's design has received rave reviews, the team had to go through several iterations before the style could be frozen. "The entire body was designed twice while the engine was designed thrice," points out Wagh. If that sounds surprising, the floor was designed 10 times and the seats too an equal number of times. Wagh recalls that the car's dashboard had two concepts running simultaneously. Both had detailed designs with respective cost estimates. The one that was eventually chosen was what the Nano team thought would look more attractive to the customer. "There were two concepts and we thought the second one added more utility. We went for it since it was also more contemporary" says Tata Technologies' Industrial Designer, Nikhil A. Jadhav. Some Tata group companies lent their resources for the small car project and Tata Technologies was one of them. The car had three concepts to begin with. "We picked the one that we thought looked the best, and from that we made a full-scale model," says Jadhav. In mid-2005, one model was completed, which then went through a stage of refinement. This was where the initial volume of the car was defined. "It was here where we got into details like lamps and doors. From that point onwards, we actually did another model, which was a second stage model. Eventually, a final refined model was done by design house, I.D.E.A., which was brought here." adds Jadhav. The style for the Nano was frozen in mid-2006-exactly a year after the first model was completed. Understandably, this stage was important since it had to be in line with the cost targets. In January 2008, Tata Motors India made breaking news when they presented the model of Nano as the world's cheapest car at INR 100,000 only ($ 2500 at that time). For various reasons, the car is yet to be launched in the market. Without getting into the political issues associated, the Tata Nano car, in my opinion, is an unviable business model and therefore will continue to run into bad weather, unless fundamental changes are made therein. My opinion is based on just three issues - (a) cost-price structure of Tata Motors Nano car is unbalanced and hence unsustainable, (b) Tata Nano car is against the grain of environmental climate issues of the day and (c) Tata Motors have taken a laid back management style in resolving critical social issues like displacement of farmland.

COST CUTTING FEATURES 

The Nano's design implements many cost-reducing innovations.



The Nano's trunk is only accessible from inside the car, as the rear hatch does not open.



One windscreen wiper instead of the usual pair.

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No power steering, unnecessary due to its light weight.

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Three lug nuts on the wheels instead of the usual four.

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Only one wing mirror.

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No radio or CD player

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No air conditioning

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No airbags

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623cc engine has only 2 cylinders

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Rear wheel drive: manually actuated 4-speed trans axle that gives the car better fuel efficiency

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Wheel Bearing: Wheel bearing is strong enough to drive the car at 72kmph but would quickly wear out at higher speeds.

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Analogue speedometer, odometer and fuel gauge.

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Single windscreen wiper

TARGET PRICING THE NANO Tata Nano idea struck in the mind of Chairman when he saw a family of four (a man, his wife and two kids) riding on a scooter on a rainy day. He felt that there was an unfulfilled need of safe, affordable and an all weather alternative. Announcing the vehicle as the least expensive production car in the world, Tata aimed for a starting price of one lakh, or 100,000, rupees. This was approximately US$2000 at that time. Rapidly rising material prices (up 13% to 23% over the car’s development time) caused the car to be priced somewhat higher than 1 lakh (US$ 2,270). In late October 2010, Reuters reported that prices of the car will be raised by an average of 9,000 rupees (US$202) from November, 1 because of rising material costs. Price was fixed without compromising on Aesthetics, Value to Customer, Safety & Environment requirements. Product design was choked because of the price target. Hence the setting the price as target triggered a series of innovation which involved: Suppliers were challenged with the stringent cost target given to them, but they accepted the same and provided good quality low cost supplies to for the vehicle. Target Cost approach – which involved breaking down the cost targets to sub-system and then to component level.

PRODUCT FEATURES 

Length:- 3.1 mtr



Wide:- 1.5 mtr

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Height:- 1.6 mtr

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Weight:- 600 Kg

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Mileage:- 20 Kmpl

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Fuel tank:- 15 Ltr

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Engine:- 624 cc

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Top speed:- 95-100 Kph

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Ground clearance:-180 mm

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Gear box:- 4-speed

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Speed of Tata Nano: Top speed – 105kmph

DIMENSION 

Length: 3.1m

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Height: 1.6 m

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Width: 1.5 m

ENGINE SPECIFICATIONS FOR TATA NANO 

Rear-wheel drive

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2-cylinder, 624 cc

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33 bhp

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Multi point fuel injection petrol engine.

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Engine is rear mounted.

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1st time a 2-cylinder gasoline engine was being used in a car with single balancer shaft.

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Anti-vibe balancer shaft

SAFETY FEATURES FOR TATA NANO – THE 1 LAKH CAR 

Sheet metal body

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Crumple zones

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Intrusion resistant doors

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Seat belts

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Strong seats and anchorages

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Rear tailgate glass bonded to the body.

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Tubeless Tyres

HOW GREEN IS TATA NANO? 

Tailpipe emission exceeds current regulatory requirements

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Lower overall pollution level than two-wheelers

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Fuel efficient (20 km/litre), ensures low carbon dioxide emissions.

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Front Bonnet

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Holds Battery

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Wind-Shield washer bottle

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Room for single suitcase

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Spare wheel

IDEA GENERATION OF NANO A dream is born – Says, “I observed families riding on two- wheelers -- the father driving the scooter, his young kid standing in front of him, his wife seated behind him holding a little baby. Add to that the slippery roads & Night time too. It is downright dangerous. It led me to wonder whether one could conceive of a safe, affordable, all-weather form of transport for such a family.” So when Tata Motors needed someone to take charge of the company's most ambitious plan yet to build the world's cheapest car ever Ravi Kant, who by then had become the company's

managing director, again turned to Wagh. Wagh remembers what he learned marketing the little truck. "People want to move from two-wheelers to four-wheelers," he says. "Today they can't afford it." More and more can, but Indian car buyers today represent a tiny slice of a potentially giant market India has just seven cars per 1,000 people. India's auto industry has grown an average of12% for the past decade, but just 1.3 million passenger vehicles were sold in India in the fiscal year ending March 2006. That means a billion Indians buy about the same number of cars in a year as 300 million Americans buy in a month.

THE COST – THE TARGET If four wheels cost as little as two wheels, that could change fast. About 7 million scooters and motorcycles were sold in India last year, typically for prices between 30,000 rupees and 70,000rupees, about $675 to $1,600. Tata is targeting a price of 100,000 rupees one lakh, in Indian terms of measurement or about $2,500 at current exchange rates, for its small car. That sounds impossibly cheap in the West but remains three times higher than India's annual per capita income. The average pay for factory workers at Tata Motors is just $5,500 a year. But the market wanted a car and if they build a people’s car it should be a car and not something that people would say,“ Ah! That’s just a scooter with four wheels or an auto-rickshaw with four wheels & not really a Car.” Trying to build a car cheap enough for motorcycle buyers seems to make sense now but seemed crazy several years ago when Rattan Tata, longtime chairman of Tata Motors and scion of the nation's giant Tata Group conglomerate, first mentioned his dream of building a one-lakh car in 2003. "They are still saying it can't be done," he says, insisting that it can and will. "Everybody is talking of small cars as $5,000 or $7,000. After we get done with it, there will hopefully be a new definition of low-cost." Since the car had to be built within a cost of Rs. 1 Lac, no conventional design would work as the costs shall be higher and so the entire car has to be redesigned. Target Cost approach lead to: Material Cost Savings- Smaller size of car & components; Material substitution- engineering plastic; Simplified component design and manufacturing process. While car manufacturers usually buy 10 to 15% of the car parts from multiple suppliers in a concurrent environment, Tata opened invitation to tender on the web to buy up to 40-50% of the car parts.

THE COST REDUCTION PARADIGM VALUE ENGINEERING ALTERNATIVES: The target was very clearly defined that within the given cost structure of 1 Lac all the components have to be allocated a maximum price and the same had to be achieved using the available alternatives. The Guiding factor was that the tax structure, on materials and manufacturing, must support the final cost of Rs. 1 Lac. The Decisions were: 

Establish factory in a tax free zone.

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Get the tax advantages on infrastructure development.

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Get the suppliers to establish base near the factory.

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Get special concessions from State Govt.

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In short select a manufacturing location where all the advantages could be achieved.

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Total sales estimation

NOW THE QUESTION WAS, “HOW MUCH TO PRODUCE” 

It was estimated that the demand for the people’s car shall be at least twice the demand for Maruti 800, the lowest end car. Initial projections were at about 500 K cars per year.

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The basic reason was the conviction that the target price shall redefine the 4 - wheeler segment.

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The price decision of Rs 1 lakh is definitely going to make a lot many people transit to 4wheeler fold and that shall explode the demand.

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Of only 10% customers of 9 Million two wheeler market transit to 4-wheelers it shall amount to 50% of the passenger car market share.

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It was decided to set up plants with 5 lacs cars per annum capacity and ramp the same up in stages, in line with increase in market demand.

The initial response to the Nano has been overwhelming and the tiny, Noddy-land car is expected to help the company cross several milestones. With revenues at Rs 1,29,994 crore for the financial year 2006-7, and group companies enjoying a market capitalization of Rs 2,51,487 crore as on January 10, 2008, the Tata Group is on a strong footing, contributing more than 3 percent to India's GDP. Nano, being the world's cheapest car, has made international players sit up in amazement and the company has received proposals from some African, Latin American and Southeast Asian countries to manufacture the car there.

PRODUCT DEVELOPMENT And finally the product was developed with the following features. 

Engine Capacity Bosch 624 c.c. twin cylinder

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Low capacity, Lighter, sufficient with better Power, Rear Engine: To reduce the transmission length using a balancer shaft.

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4 Speed Manual Gear Box

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All Aluminum Engine

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Higher thermal conductivity than cast iron, Lighter and so better mileage

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Engine Management System by Bosch

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Superb emission control & smooth acceleration.

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Dimensions L: 3.1m, W: 1.5m, H: 1.6m

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Less length but more inner cabin space due to height. Comfortable leg room.

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Independent Front & Rear Suspension McPherson Strut in Front & Coil spring & trailing arm in rear.

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Better ride than Maruti 800.

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Single piece ribbed steel body with safety features such as crumple zones, intrusion resistant doors, seat belts, strong seats & anchorages.

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Safety requirements are adequately met.

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Single wiper in place of two

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Cost effective yet functionality is met

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Tube less Tires

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Weight reduced by 2 Kg. Cost reductions 200 Rs. And in line with modern vehicles

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Instrument console in the centre

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Elegant to look at and can be used both in Left Hand & Right hand version.

THE FINAL VERDICT: THE CAR COST IS RS 1 LAC

ENGINEERING IT According to Wagh, the prototypes were put in place with that design. Again, it was not as if the job was done. Tata Group and Tata Motors Chairman, Ratan Tata, felt that a slight change in the front part of the car was required. "Finally, we ended up increasing the length of the car by 100 mm," says Wagh. It is not as if there is no room for further change in styling or design. By Wagh's own admission, there will not be any change in the Nano's exterior although there could be a few changes in the interior of the car. While the bit about design and styling took a while, the decision with respect to having a rear engine was less complicated. "We had decided on a rear engine four years ago. This was with the objective of getting the best, optimal layout," states the Jai Bolar, Senior Manager (Development), ERC. If there was one thing from which the focus could not be taken away, it was obviously cost. That was often easier said than done, since the rising input costs were beyond the company's control. "Rising input costs made our engineering targets difficult. For example, if steel prices went up, we had no choice but to reduce the amount of steel in the car," says Wagh. Again, it was important to look beyond costs as well. "The price of the car is what the customer pays in the beginning. Later on, what matters is the performance of the car," he adds. Ideas for the Nano came from unexpected quarters and they were looked at closely before a decision was taken. For instance, in addition to the vendors, a small group of mechanics was part of the development phase. This was really a part of the serviceability and accessibility workshop. Wagh recalls that one of the suggestions was to have an additional opening on the rear floor which would provide access to the intake manifold and starter. "We were trying to avoid this for cost reasons but the mechanics were vehement," he says. The importance of balancing design changes with their respective cost implications cannot be overstated. Every design, therefore, had to cater to three key requirements-cost, regulatory requirements and acceptable performance standards. As Wagh puts it, "We did not want to make something that was an embarrassment of a car." Clearly, while the cost was hugely critical, the company was unwilling to make any kind of compromise on other areas. Fuel economy, according to Narendra Kumar Jain, Deputy General Manager (Engines), ERC, is a major driver for selling a vehicle in India. "It was important, for instance, to ensure that the car could be manoeuvred in the city. If your car requires less parking, then the material required is also less," he adds. Of course, there was the advantage of having learnt from the Indica and the Ace. Wagh, whose father was on the Indica R&D team, was very closely involved with the design of the Ace as well. "Clearly, the Nano was a tougher cost target. In a commercial vehicle, endurance is of prime importance. It is also important in the case of a car, but sometimes other aspects like touch and feel are more critical," he explains. Possibly, the biggest plus point through the launch of the Indica and the Ace is that the development process at Tata Motors has matured to a great extent.

COSTS, OUTSOURCING AND BEYOND According to Wagh, every component in the Nano has been studied from a functionality, cost and performance requirement. There was no other way to reduce costs. From an outsourcing perspective, the company put in place an Early Vendor Integration Programme. "We had a lot of design inputs from vendors that either facilitated manufacturing or brought the cost down. This could be for lamps or seats, for example," says Balasubramoniam. Elaborating on the outsourcing for the lamp, he explains that the surface was provided. "It was within that surface where the lighting mechanism had to be made operational" explains Balasubramoniam. The Nano is completely indigenised, save for the fact that it will be using Korean and Japanese steel from Posco and JFE to begin with, as Tata Steel's expansion at Jamshedpur is not yet complete. Importantly, over 85 per cent of the vehicle will come from outside vendors. Tier-I ancillary manufacturers, based in and around the small car plant at Singur will manufacture complete sub-assemblies. The logic for this, says Wagh, is to make manufacturing as simple as possible. Balasubramoniam, meanwhile, has thus been flying all over the country, not only to the three established 'auto' manufacturing belts in India - the National Capital Region (NCR), Pune, Aurangabad, Nashik and Chennai - but also to the upcoming small car plant in Singur to plan the layout of the vendor park. This is with the objective of ensuring that parts between vendors and the assembly line move smoothly and just in time. Not surprisingly, the vendors have had it anything but easy as far as the small car project is concerned. There are those who thought that the pressures on costing were just not working to their advantage. "We felt that it was not feasible for us to compete for the basic model of the Nano because the costing was too tight," says Sanjay Labroo, Managing Director, Asahi India Glass, but adds that he did plan to bid for the 'Deluxe model'. Those who are on the project think it is worth the effort. "This car is not over-engineered like, say, German cars are, this is a great example of frugal cost-effective and relevant engineering," says Surinder Kapur, Managing Director, Sona Group, which has made the steering column and the transmission. Lumax Industries too was heavily involved in the project. The company made and designed the head and tail light fixtures on the car. "The opportunity to work on this car also gave our engineers a chance to showcase their skills, because most other car products are designed abroad and we just have to manufacture components to a specific blueprint. In this project we designed light fixtures that meet all regulatory needs, fit the car and are low-cost", says Deepak Jain, Executive Chairman, Lumax Industries. The company got involved in the project at a very early stage and Jain thinks that was one major reason by which costs were reduced. Keeping costs down was a major problem for vendors, and they found innovative ways around it. "A long-life bulb that might last 10 years adds a lot to the cost, so we fit a standard-life bulb that met regulatory and warranty issues but kept costs low," explains Jain. "When we figured out that the car would be rear-wheel drive, we knew that the steering column could be engineered differently since the front wheels would not hold the weight of the engine. So we kept the steering column hollow," says Kapur.

Tata Motors, for its part, looked at various ways to cut costs across the spectrum. "For instance, a normal wheel mounting has four pins while we have three. We have also reduced the thickness of the bumpers," explains Wagh. That is, of course, apart from the fact that the car has only one wiper instead of the more conventional two. Electronic sourcing has been another effort to cut costs. Wagh goes back to a time when Tata Motors was recovering from huge losses - that was in 2001 - when the company took a lot of initiatives to cut costs. "One of the ways we decided to do it was through e-sourcing. It was used extensively for the Ace and now for the Nano. It provides good benefits as long as product specifications are firm," he adds. By Wagh's estimate, there has been a saving of around 10 per cent as far as the Indica and the Ace are concerned. The actual numbers for the Nano are still being worked out. As things stand, the standard version of the car - what is being referred to, as the Rs 1 lakh car in that sense - will not have an air-conditioner or power windows or a central locking system. That apart, it will not have body-coloured bumpers or fabric-trimmed seats. All these features are expected to be a part of the deluxe model. According to Wagh, in any automotive development program, the cost reduction continues not till just the time the car is launched but much beyond that. "Initially, we were looking at cost prevention, which involved selecting a design concept with the least cost. Today, it is a clear cost-reduction effort," he says.

COST PRICE STRUCTURE We gather from press reports that Tata Motors have been driving hard bargains with the state governments to try and obtain as much subsidies as possible for the small car project. The subsidies they had obtained from West Bengal Government, as enumerated by the Economic Times of 25th September 2008, in an article "El Nano: A Perfect Storm" by Arvind Panagariya, are as follows –     

Land lease at throw-away prices (Rs 1,260/- only per acre per month) A soft loan of Rs 2 billion for 20 years at interest rate of 1% per annum Concessional tariff of electricity at Rs 3 per kwh VAT waiver for some Rs 10 billion or so Subsidized rates of water, stamp duties and other infrastructural facilities at nil or very low costs.

A recent press report says that it has been claimed that the amount of subsidy works out to Rs 60,000 per car, which is as high as 60% of its retail selling price. In fact the cost equation is so thinly balanced, even after grant of the above subsidies, that Tata Motors management rejected a proposal to shift the vendor site location from the plant site to just across the road on the ground that the additional costs will make the project unviable. It has never been wise to depend for business viability solely on government grants and subsidies and short term tax incentives. Nano however is trying to go against this basic business philosophy.

SAFETY ISSUES As there has been concern generally on the issue of safety, the small car team outlines the fact that the Nano caters to safety norms at two levels. "The Nano meets all regulations in the Indian market. The package protected car also meets all future regulations in Europe as well, which includes offset frontal and side impact," says Wagh. Environment has been another controversial area, though the company points out that all norms have been met. "Currently, the car meets Bharat III norms, which are applicable in 11 cities while it meets the Bharat Stage II norms in the rest of the country. We will meet the Bharat Stage IV and Euro IV requirements as well," says R. G. Rajhans, Project Manager (Body Systems), Tata Technologies. For now, the focus is on getting the car on the road, which Wagh thinks should be possible during the second half of 2008-09 financial year, that is after September. It is expected that the plant in Singur will produce around 1,000 cars per day. There are a couple of other things too that are being looked at. "There are alternate fuel technologies under development such as CNG and LPG", he says and he even hints that a future model "could have a diesel engine". If that is not enough, Wagh is also working on technologies that Ratan Tata mentioned in an interview to this publication that the car "in the future might well have continuously variable or automatic transmission." Wagh adds that the roadmap will be to have a second generation of the vehicle in the next 5-7 years. “A promise is a promise,” said Rattan Tata, Chairman, Tata Motors, on 10th January, 2008,when the Nano was first displayed at the Auto Show in Delhi. The Nano project didn’t grabthe attention of only Indians; the entire world had their eyes glued to the world’s cheapest car. A truly People’s Car, this time is from India. Though the dealer price is Rs. 1 lakh, the price on road, when it will be launched, will reach around Rs. 1,25,00 but it will be still more affordable and will be more eco-friendly than most other cars giving a mileage of around23km/liters. The price of the car is such that a lot of rich and HNIs, if interested, can buy the car just by a single swipe of their credit cards. Providing a car worth rupees one lakh car was the dream of the chairman of Tata motors Mr. Rattan Tata. And with high qualified IT skills people he has shown the Indian talents to the whole world. SOME BASIC FACTS Cost of development - 1700 crores Manufacturing cost(excluding dealer margin and taxes)- Rs 65,000 per unit Development of Design - India Time for designing the car - 4 years Team -A team of 150 engineers , everyone below age 28 Biggest hurdle - To make a car cheap without compromising design

STEPS TO ESTABLISH TARGET COST 1. RE-ORIENT CULTURE AND ATTITUDES. The first and most challenging step is re-orient thinking toward market-driven pricing and prioritized customer needs rather than just technical requirements as a basis for product development. This is a fundamental change from the attitude in most organizations where cost is the result of the design rather than influence the design and that pricing is derived from building up a estimate of the cost of manufacturing a product. 2. ESTABLISH A MARKET -DRIVEN TARGET PRICE . A target price needs to be established based upon market factors such as the company position in the market place (market share), business and market penetration strategy, competition and competitive price response, targeted market niche or price point, and elasticity of demand. If the company is responding to a request for proposal/quotation, the target price is based on analysis of the price to win considering customer affordability and competitive analysis. 3. DETERMINE THE TARGET COST. Once the target price is established, a worksheet (see example below) is used to calculate the target cost by subtracting the standard profit margin, warranty reserves, and any uncontrollable corporate allocations. If a bid includes non-recurring development costs, these are also subtracted. The target cost is allocated down to lower level assemblies of subsystems in a manner consistent with the structure of teams or individual designer responsibilities. 4. BALANCE TARGET COST WITH REQUIREMENTS . Before the target cost is finalized, it must be considered in conjunction with product requirements. The greatest opportunity to control a product's costs is through proper setting of requirements or specifications. This requires a careful understanding of the voice of the customer, use of conjoint analysis to understand the value that customers place on particular product capabilities, and use of techniques such as quality function deployment to help make these tradeoff's among various product requirements including target cost. 5. ESTABLISH A TARGET COSTING PROCESS AND A TEAM -BASED ORGANIZATION . A well-defined process is required that integrates activities and tasks to support to support target costing. This process needs to be based on early and proactive consideration of target costs and incorporate tools and methodologies described subsequently. Further, a team-based organization is required that integrates essential disciplines such as marketing, engineering, manufacturing, purchasing, and finance. Responsibilities to support target costing need to be clearly defined. 6. BRAINSTORM AND ANALYZE ALTERNATIVES . The second most significant opportunity to achieve cost reduction is through consideration of multiple concept and design alternatives for both the product and its manufacturing and support processes at each stage of the development cycle. These opportunities can be achieved when there is outof-the-box or creative consideration of alternatives coupled with structured analysis and decision-making methods. 7. ESTABLISH PRODUCT COST MODELS TO SUPPORT DECISION-MAKING. Product cost models and cost tables provide the tools to evaluate the implications of concept and design alternatives. In the early stages of development, these models are based on parametric estimating or analogy techniques. Further on in the development cycle as the

product and process become more defined, these models are based on industrial engineering or bottom-up estimating techniques. The models need to be comprehensive to address all of the proposed materials, fabrication processes, and assembly process and need to be validated to insure reasonable accuracy. A target cost worksheet can be used to capture the various elements of product cost, compare alternatives, as well as track changing estimates against target cost over the development cycle. 8. USE TOOLS TO REDUCE COSTS. Use of tools and methodologies related to design for manufacturability and assembly, design for inspection and test, modularity and part standardization, and value analysis or function analysis. These methodologies will consist of guidelines, databases, training, procedures, and supporting analytic tools. 9. REDUCE INDIRECT COST APPLICATION. Since a significant portion of a product's costs (typically 30-50%) are indirect, these costs must also be addressed. The enterprise must examine these costs, re-engineer indirect business processes, and minimize non-valueadded costs. But in addition to these steps, development personnel generally lack an understanding of the relationship of these costs to the product and process design decisions that they make. Use of activity-based costing and an understanding of the organization's cost drivers can provide a basis for understanding how design decisions impact indirect costs and, as a result, allow their avoidance. 10. MEASURE RESULTS AND MAINTAIN MANAGEMENT FOCUS. Current estimated costs need to be tracked against target cost throughout development and the rate of closure monitored. Management needs to focus attention of target cost achievement during design reviews and phase-gate reviews to communicate the importance of target costing to the organization

CHALLENGES FACED DURING THE DEVELOPMENT OF TATA NANO After much speculation, Tata Motors announced on May 19, 2006 that it will be manufacturing Tata Nano from Singur, Bengal. However, within a week protests were started by a few farmers in the area against the acquisition of their lands by Tata. The cause was taken up by Mamata Banerjee, the leader of Congress. The situation escalated with Tata‘s threatening to pull out and disruption of compensation for farmers who had volunteered to sell their land by antiacquisition activists. This was followed by a state-22 wide strike by Trinamool Congress in October. The government banned political parties from holding meetings or processions at Singur and installed a huge police force there. There was widespread violence in the clashes between the police and the farmers on December 2, 2006. The Key concerns are

• Safety • Emissions • Congestions

QUESTION OF SAFETY The Nano has an all sheet-metal body made from Japanese and Korean steel, with safety features such as crumple zones, intrusion-resistant doors, seat-belts, strong seats and anchorages, and the rear tailgate glass bonded to the body. Tires are tubeless.

MASS MOTORIZATION As the Nano was conceived and designed around introducing the automobile to a sector of the population who are currently using eco-friendly bicycles and motorcycles, environmentalists are concerned that its extraordinarily low price might lead to mass motorization in countries like India and therefore possibly aggravate pollution as well as increase the demand for oil. The ecology focused German newspaper die tageszeitung feels that such concerns are "inappropriate" as the Tata Nano has lower emissions compared to the average Volkswagen, and that developing countries shouldn't be denied the right to motorized mobility when industrialized countries should be looking to reduce their emissions and usage of cars. Die Weltre ports that the car conforms to environmental protection, and will have the lowest emissions in India. In crowded metropolitan cities like Mumbai, Ratan Tata has conceived a scheme to only offer the Nano to those individuals who do not have an automobile already. The Nano will also replace many overloaded and worn-out two-stroke polluting vehicles, both two and threewheeled. According to Anumita Roychowdhury, associate director of the Centre for Science and Environment in New Delhi, "the low-cost cars will be disastrous" in the current policy and regulatory framework.

USED CAR MARKET EFFECTS The Nano is alleged to have severely affected the used car market in India, as many Indians opt to wait for the Nano's release rather than buying used cars, such as the Maruti 800 (a rebadged Suzuki Alto), which is considered as the Nano's nearest competitor. Sales of new Maruti 800s have dropped by 20%, and used ones by 30% following the unveiling of the Nano. As one automotive journalist summarizes; ―People are asking themselves—and us—why they should pay, say, 250,000 Rupees for a Maruti Alto, when they can wait and get a brand new Nano for less in a few months‘ time, a car that is actually bigger.

CASES OF FIRE There have been 7 cases where the Nano caught fire, with the first three attributed to an electrical fault in the steering column. Tata Motors has since replaced the OEM supplying the fire retardant material as well as the steering column assembly. In March 2010, a new case of a Tata Nano catching fire was reported, in which the car was being delivered from the dealership to the owner's house. This case is currently under investigation.

COMPETITORS Rival car makers including Bajaj Auto, Fiat, General Motors, Ford Motor, Hyundai and Toyota Motor have all expressed interest in building small cars in India that are affordable to more middle-class consumers in emerging markets. The bulk of demand there is for small cars because people are much more sensitive to fuel prices. Honda and Toyota are leading the way on so called cleaner gasoline-electric hybrids, and some environmentalists argue getting prices down on these technologies is where efforts should be concentrated. Inexpensive and ecofriendly electric-cars like Tara Tiny (which has an engine producing 4 hp compared to Nano's 33 hp), Oreva Super (both reportedly even cheaper than Tata Nano) and REVA pose even more significant danger to Nano. There are also rumors of Maruti Suzuki introducing a lower priced version of Alto to counter Tata Nano.

APPENDIX TARGET COSTING PRESSURES ON NEW PRODUCTS

CONCLUSION In the conclusion we can say that Nano has truly lived up to its expectations and shattered the following myths  Rear- engine cars are unsafe- Ferrari, Porsche, VW and Lamborghini do it why can‘t Tata?  The Nano will pollute the planet- 623cc engine produces less CO2 than average Eu small car.  The Nano will have no storage space-Sufficient storage space, under the bonnet and over the rear parcel tray, rear seats fold to dramatically increase storage space.

Tata has defied the conventional odds and sceptics in the industry through the innovation of the world's cheapest car. Tata Nano is a marvel of a product yet audaciously economical and mechanically simple. It is a breakthrough in frugal engineering where innovation is driven by cost savings and sheer ingenuity. Tata managed to reorient the basic tenets of efficiency and practicality to meet the cost target. Tata Nano achieves what most people deemed impossible through originality and ingenuity. It is a no frills car that serves the needs of the general public and India's deplorable road conditions and notorious traffic. In this sense, the production and launch of Tata Nano can be called a revolution - not only to the consumers but also to industry players. Other players are contemplating on their own versions of low cost alternatives as a result of the overwhelming response from the Indian public and all over the world. Moreover, their skepticism is met with a surprise upon seeing the model in action. The next step forward for Tata is to address the possible concerns with regard to ownership in order for customers to grasp the value proposition that Tata is trying to propagate. This includes dispelling all perceptions of shortcomings normally associated with a low-cost car through vigorous testing on real roads using real users. The basic rule of customer service still applies. Tata Nano should meet the consumer's expectations by providing a reliable and modestly safe vehicle to drive. The car, with its immense recognition gained even before its launch, is expected to fulfill the dreams of common people.

SPECIFICATIONS Engine:

2 cylinder petrol with Bosch multi-point fuel injection (single injector) all aluminium33 horsepower (25 kW) 624 cc (38 cu in) Value Motronic engine management platform from Bosch 2 valves per cylinder overhead camshaft Compression ratio: 9.5:1 bore × stroke: 73.5 mm (2.9 in) × 73.5 mm (2.9 in) Power: 35 PS (26 kW; 35 hp) @ 5250 rpm Torque: 48 N·m (35 ft·lbf) @ 3000 +/-500 rpm

Layout and Transmission

Rear wheel drive 4-speed manual transmission

Steering

Mechanical rack and pinion w/o servo Turning radius: 4 metres

Performance

Acceleration: 0-60 km/h (37 mph): 8 seconds Maximum speed: 105 km/h (65 mph) Fuel efficiency (overall): 23.6 kilometres per litre (4.24 litres per 100 kilometres (66.6 mpg-imp; 55.5 mpgUS ))

Body and dimensions

Seat belt: 4

Suspension, Tires & Brakes

Front brake: 180 mm drum

Trunk capacity: 150 L (5.3 cu ft)

Rear brake: 180 mm drum Front track: 1,325 mm (52.2 in) Rear track: 1,315 mm (51.8 in) Ground clearance: 180 mm (7.1 in) Front suspension: McPherson strut with lower A arm Rear suspension: Independent coil spring 12-inch wheels

OUTSOURCED PARTS SUPPLIER INFORMATION

Supplier [37]

Part/system [37]

Texspin

Clutch Bearings

Bosch

Oxygen sensor, Gasoline injection system (diesel will follow), starter, alternator, brake system

Continental AG

Gasoline fuel supply system, fuel level sensor

Caparo

Inner structural panels

HSI AUTO

Static sealing systems (Weather Strips)

Delphi

Instrument cluster

Denso

Windshield wiper system (single motor and arm)

FAG Kugelfischer

Rear-wheel bearing

Federal-Mogul

Pistons, Piston rings, Spark plugs, Gaskets, Systems protection

Ficosa

Rear-view mirrors, interior mirrors, manual and CVT shifters, washer system

Freudenberg

Engine sealing

GKN

Driveshafts

INA

Shifting elements

ITW Deltar

Outside and inside door handles

Johnson Controls

Seating

Mahle

Camshafts, spin-on oil filters, fuel filters and air cleaners

Saint-Gobain

Glass

TRW

Brake system

Ceekay Daikin/Valeo

Clutch sets

Vibracoustic

Engine mounts

Visteon

Air induction system

ZF Friedrichshafen Chassis components, including tie rods AG Behr

HVAC for the luxury version

Dürr

Lean Paint Shop

COMPARISON

TATA NANO PRICES ON THE TATA MOTORS’S WEBSITE

TATA NANO OFFICIAL FINANCERS AT LAUNCH

THE APPLICATION FORM

THE ACCESSORIES PRICE LIST

GLOSSARY Abnormal cost: It is the cost which is not normally incurred at a given level of output in the conditions in which that level of output is normally attained. Absolute cost: It is the total cost of any product or process. For e.g.: in a cost sheet, both absolute cost and cost per unit are depicted. Absorption costing: It is the technique of assigning all costs i.e. both fixed and variable, to the respective product/service. Actual Cost: An amount determined on the basis of cost incurred including standard cost properly adjusted for applicable variance. Administrative cost: It is the indirect cost pertaining to the administrative function which involves formulation of policies, directing the organisation and controlling the operations of an undertaking. Budgeted cost: Cost or quantitative expression of objectives and a means of monitoring progress towards achievement of those objectives for a specific period. Common Cost: The cost of resources employed jointly in the production of two or more outputs and the cost cannot be directly traced to any one of those outputs. Controllable cost: The cost, which can be influenced by the action of a specified person in an organisation, is known as controllable cost. Conversion cost: It is the cost incurred for converting the raw material into finished product. It comprises of direct labour cost, direct expenses and factory overheads. Cost: Cost represents the amount of expenditure (actual or notional) incurred on or attributable to a given thing. It represents the resources that have been or must be sacrificed to attain a particular objective. Cost unit: A cost unit is defined as a unit of quantity of product, service or time (or a combination of these) in relation to which costs may be ascertained or expressed. Cost units are usually units of physical measurement like number, weight, time, area, length, volume etc. Direct cost : Direct cost is that cost which can be identified with a cost centre or a cost unit. For e.g. cost of direct materials, cost of direct labour. Direct costing: Under direct costing, a unit cost is assigned only the direct cost, i.e., all the direct costs are charged to the relevant operations, products or processes. Direct Labor: Labor which can be attributed wholly to a particular Discretionary cost: It is an "escapable" or "avoidable" cost. In other words, it is that cost which is not essential for the accomplishment of a particular objective.

Economic order quantity: The level of inventory order that minimises total cost associated with inventory management. Estimated cost: It is an approximate assessment of what the cost will be. It is based on past data adjusted to anticipated future changes. Expired cost: Costs which cannot contribute to the production of future revenues. Imputed / Notional cost: Imputed cost is that cost which does not involve any cash outlay. Though it is a hypothetical cost, it is relevant for decision making. Interest on capital, the payment for which is not actually made, is an example of imputed cost. Inventoriable / Product cost: It is the cost which is assigned to the product. Job Costing: A job card is prepared for each job to accumulate costs.The cost of the jobs is determined by adding all the costs against the job when it is completed. This method of costing is used in printing press, foundries, motor- workshops, advertising etc. Joint cost: It is the cost of the process which results in more than one main product. Labour efficiency variance: The number of hours actually worked minus the standard hours allowed for the production achieved multiplied by the standard rate to establish a value for efficiency (favorable) or inefficiency (unfavorable) of the work force. Labor yield variance: It shows the monetary impact of using more or fewer total hours than the standard allowed = (standard mix * actual hours * standard rate) -(standard mix * standard hours * standard rate); Managed / Policy cost: It is that cost which is incurred as a matter of policy eg: R & D cost. It arises from periodic (usually annual) decisions regarding the maximum outlay to be incurred and. This cost is not tied to a cause and effect relationship between input and output. Marginal cost: It is the amount at any given volume of output by which aggregate cost changes if the volume of output changes increases/decreases) by one unit. Multiple Costing: It is a combination of two or more methods of costing mentioned above. Suppose a firm manufactures bicycles, including its components,the parts will be costed by way of batch costing but the cost of assembling the bicyclewill be done by unit costing.This method is also called composite costing. Some other industries using this method of costing are those manufacturing radios, automobiles, aeroplanes etc. Normal cost: It is the cost which is normally incurred at a given level of output, under the conditions in which that level of output is normally attained Operating Costing: The method of costing used in service rendering undertakings is known as operating costing. Period cost: It is the cost which is not assigned to the product but is charged as an expense against the revenue of the period in which it is incurred. Pre-production cost: It is that part of the development cost which is incurred for the purpose of a trial run, before the commencement of formal production.

Prime cost: Prime cost is the aggregate of direct material cost, direct labour cost and direct expenses. Prime cost percentage rate: Estimated overhead divided by the estimated prime cost.The result is expressed as a percentage. Process costing: A costing method applied where a product passes through many separate stages of manufacture.There is a continuous flow of identical products Shut down cost: The fixed cost which cannot be avoided during the temporary closure of a plant is known as shut down cost. Single Output/Unit Costing: This method of costing is used where a single product is produced.This method of costing is normally used in marble quarrying, mining, brick-kilns, breweries, etc. Standard cost: It is a pre-determined cost which is arrived at, assuming a particular level of efficiency in utilisation of material, labour and other indirect services. It is the planned cost of a product and is expected to be achieved under a particular production process under normal conditions. Standard Costing: CIMA defines standard costing as " a control technique which compares standard costs and revenues with actual results to obtain variances which are used to stimulate improved performance." Uncontrollable cost: The cost which cannot be influenced by the action of the person heading the responsibility centre is called uncontrollable cost. Fore.g. all the allocated costs and the fixed costs. Uniform Costing: It is defined as " the use by several undertakings of the same costing system, i.e., the same basic costing methods, principles and techniques." Variable cost: The cost which varies with the level of production is called variable cost i.e., it increases on increase in production volume and vice-versa. For e.g. cost of materials, cost of labour.

REFRENCES  www.accountingformanagement.com  maaw.info/ArticleSummaries/ArtSumSakurai89.htm  en.wikipedia.org/wiki/Target_costing  www.npd-solutions.com/target.html  http://www.costleadershipstrategy.com/product-costing/tata-nanoworlds-cheapest-car-2500/  ABS Motors: Authorized Tata Nano Dealers  http://streamlinesupplychain.wordpress.com/2008/02/02/tata-nanoand-the-supply-chain/  http://tatanano.inservices.tatamotors.com/tatamotors/index.php?opti on=com_content&task=view&id=215&Itemid=207