Tata Motors - Nano Case Study

Tata Motors is planning to launch their cars in Europe. If to take a look on population of Europe, it is wide enough, because population in the most of the countries keeps growing. Just in European Union countries there are 497.8 millions people and their in year 2030 this number is predicted to be 527.7 millions.

However Europe consists of many countries, some of them has large population, like Germany – 82 million or France 62,4 million. But there are also countries with small population like Latvia -2.2 million, Lithuania- 3,3 million and Slovenia 2 million. For this reason for Tata Motors it would be inconvenient to go to all European countries, because also conditions in European Union and Non European Union countries are different and it would diversify approaches and raise the costs.

If we take a look on age distribution, average proportion of population above 65 is 17,2% and in 2030 it is predicted to be 23,7. It means that society in Europe grow old. But what is important for Tata Motors, that old people mostly are not those, who buy new cars. Also they prefer stabil brands with high quality.

Although Tata Nano mission is change the way people travel in rural parts of country, it doesn't conform for needs of European rural inhabitants. Still 31,7 of Eastern European,16,6% of Northern European, 34,6% of Southern European and 23,8% of Western European population lives in country side. Needs of these people are different from those what Tata Nano offers. Including, small boot and powerless engine.

Because still in European Union Countries there are 1,386.8 thousand km are secondary of regional meaning roads, which often are in not good condition (439.6 thousand km are national roads and motorways). Also in the mountainous countries of the EU15, the proportion living in mountain areas varies from 0.8% in Belgium to 49.8% in Austria; and in the mountainous applicant countries, from 5.8% in Poland to 64.9% in Slovenia. Switzerland