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@hrag: I agree with you on the respect they have. Out here in London, I have had a couple of experiences talking to Corus and JLR employees, and they have mostly positive things to say.

As to number of Nanos they need to sell, I we need to take into account what is the raw material cost (Rs 25,000 according to some articles), the manufacturing cost, the investment in the factory (Rs 1700 crs) and the design and development cost. I am no Auto analyst to be able to guage how much the manufacturing or the development cost, but I read somewhere that its going to take at least 400,000 Nanos before the start breaking even.

Couldn't agree with you more.

I dont and have never worked for a Tata company. I hate Tata broadband connections, they are the worst around (mainly because they are purchased from Dishnet and use exposed cabling since Tata does not have landlines in most areas unlike other providers like Airtel or BSNL), and I cant say I have been happy with every Tata product or service I have tried. However by and large I agree that all our lives are touched by the Tata brand and mostly in a positive way, and most common Indians have a lot of respect and pride in the Tata brand.

But there is another angle to this. Anybody who is aware of history and current events and who is patriotic cannot but be appreciative and respectful of the Tata group and their contributions to India as a nation. From the first steel plant, to the first Indian luxury hotel chain, to buying major UK companies they have against all odds proved that Indians can compete with the best. They also set up the first airline in the country (now known as Air India) which was then taken over by the govt. If not for socialism probably Air India would be comparable in stature to SQ and Tata Motors to Toyota by now. Not only that, apart from setting up IISc, Tata also set up the TIFR and funded Dr Bhabha for his research hence had a critical role in our nuclear technology and our nations security.

So whether Indica or Nano or whatever other product is like by anyone or not, for most people Tata = India.

This is totally off-topic, but TATA did start the First Privately Owned Airlines in India (or may be it is Deccan Airlines of Hyderabad). It was later nationalized and renamed as Air India, the behemoth money sucking bottom rung public sector company that still flies.

More off topic: I never worked for TATA or owned any of their products, except browse in a TATA net center once, but last year I bought a bottle of Glaceaux for $1.50 only because TATA had a 30% share in that company.

I lived and worked in New York before I relocated back to India. During my spare time I used to do extensive fundamental analysis research on companies mainly Tata group companies and my source of information was only internet and annual reports on Sebi's website. When Tata released the Indigo, I decided to buy a Tata car upon my return to India. At that time, I put up a review on Mouthshut praising Indian efforts and Tata cars. you can see the review and my id on mouthshut is ss_gary. People on Mouthshut tore my review down. I proudly declared that I will buy a Tata car upon my return to India. One lady from Bombay suggested that putting money in a Tata car is pouring it down the drain. She suggested that I buy a similiar car from Fiat instead of from Tata. That Fiat car apparently created waves upon launch and today does not even exist in the market. On the other hand Indigo remains the largest sold sedan in the country for years. I stopped posting on Mouthshut because I felt, I don't belong to it. I never worked for Tatas. But using their products and services is assuring. I drive a Tata Indica financed by Tata Motor Finance. Use Tata Sky, Indicom phone,VSNL Internet,Voltas AC,Titan watch, shop at Westside and Landmark bookstores. Until about a decade ago Tatas managed ACC. Those days my father bought that cement at a premium to the market while our house was being built. Ofcourse, I channel my investments into Tata managed companies too among others, because, I believe in the integrity of their management.

I expect Tata Nonos, will replace smaller transport vehicle like auto rickshaws in india..not immediately but over a period for sure..in that case the sales figure will be very large..

For all its faults, Tata Indica provides affordable, and I dare say, reliable motoring for many middle class Indian families.

we must also consider the fact that tata will definitely increase the price of the nano and slowly it will slip into ALTO territory and people will hesitate in choosing between the two.

For all the Indian flavour that Tata Nano provides my heart surely goes to Tata. But to stick to the agenda of the topic as it started.

I am guessing, the initial break-even required figures Tata's would target is 21000 p.m. which is the amount of Alto's Suzuki is selling now in India. That would be thier starting target. Once they achive that they would eventually target the sales figures of Hero Honda viz. 50000 p.m. As far as my knowledge of accounts goes. It should take atleast 10,00,000 cars to be sold before they can call it a beneficial investment.
Correct me if, I am wrong.

One of the biggest positives seen in the Nano sales so far has been the fact that Tata has been able to push the more expensive variants rather than bare basic Nano.

• People seem to be preferring to buy the more loaded variants which provides Tata with far healthier margins. There are an endless number of variants possible with this car.

• Then the impact of the Diesel Nano will be huge. The nearest Diesel competitor will be at least 2 lacs away which gives Tata an open playing field with no rivals, Diesels have always been their strong point.
• Nano will also have an auto variant. Till now there has never been an affordable automatic option for entry level car buyers. Senior citizens, First time drivers, the fairer sex and many others will welcome the automatic option available in a Nano at a much more affordable price.
• Benchmarking volumes of the regular Nano with the present cheap options in the market i.e. 800/Alto makes sense, but with the Diesel & auto variants Tata have their cards close to their chest, and for which the likes of Maruti, Hyundai or the long overdue Bajaj car have no reply. The variants presently available for sale is just a tip of the ice berg.
• The car has huge potential globally especially in developing nations. If Tata can fulfill domestic demand and begin to focus on exports the possibilities are limitless. Even with a very modest target of 200-300 cars monthly to the 25 odd countries they alsready export to, they can easily double the sales.
• Tata can also earn money on royalties, technology transfer or licensing production to various interested parties abroad. For years Indians have been shelling out their money for similar collabrations (a la Suzuki), high time the tables turned.
• Tata has aldready disclosed that they are developing other variants on the Nano platform. Which includes a commercial variant and the Europa.

Of course all of these are only assumptions, just like ones made on this thread regarding the faliure of this project. I think Tata have done the best job in designing and making the Nano under the near impossible parameters they have set themselves and I dont think any other car maker can do any better or even has the balls to attempt it. Initially naysayers were busy joking about what such a car will look like, When the concept was revealed, everyone was dumbstruck. Now its to question the commercial viability of the project. Of course it wont be an easy task, but I for one wish Ratan Tata and his team all the best.

Commercial viability for NANO !! :Shockked:
Come on man. 10 yrs. down the line cost of Nano will be less than an autorikshaw and the volume double of them ! Every small ally of indian small town would be filled with them. Every road side mechanic an expert in Nano. Have we forgotten "Hamara Bajaj".
If Hidustan lever can make profit by selling Rs.1/- pouch definitely, positively , 100% NANO has no other way.:thumbs up
Maruti keeping price of M-800 nearly constant for last decade ( @ ~ 2L) HOW 'n' WHY ?

Cheers

Read some press reports about Tata Nano booking being cancelled because of fire incidents ?

read more at: Nano mishaps prompt booking cancellations

An old thread has been bumped up on 1st Oct it seems.

Actually we need not worry about TATA making profits on the Nano and recovering the sunk costs unless we are Investors in TATA Shares.

The profits anticipated per Nano on the Nano are too high, as also the estimated sunk cost. These are all exagerated / worst case scenarios.

TATA will manage to do well with the nano, results will be out in a years time, INITIAL MECHANICAL / ELECTRICAL NIGGLES were expected and would be rectified soon enough.

Lets not worry too much, this one is going to be a case study at all management institutes in 3 years time. Much like the Scorpio story for Mahindra but this one is much bigger.