Tata Nano Report

Contents

1 Introduction 3

2 Tata Nano Specifications 8

3 Tata Nano flashbacks 9

4 The Bass Model 11

5 The life cycle of Tata Nano Car: Some diffusion models 13

6 Conclusions 19

7 Acknowledgement 19

8 Bibliography 20

Department of Stastical Sciences corresponding author:

Via Cesare Battisti, 241 santosh sabyasachi

35121 Padova santosh.sabyasachi@iitbbs.ac.in

Italy

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Tel: +39 049 8274168 http://www.iitbbs.ac.in

Fax: +39 049 8274170

Is Tata Nano a Market changing Innovation?

SantoshSabyasachi

School of Mechanical Sciences

Indian Institute of Technology Bhubaneswar

India

Abstract: Indian Automotive Industry has experienced a radical change with the diffusion of small and medium sized cars into Indian Market. Among these, Tata Nano is perhaps the most famous, being developed to be the most accepted small car by Indians. However a closer view of the sales of Tata Nano car gives a rather different picture. In this report we analyse the diffusion of Tata Nano in the Indian market, in order to understand how the life cycle of this new car is evolving. This analysis also provides interesting insights on how a developing country like India accepts an innovation, especially in the automotive field.

Keywords: generalised Bass model, Tata Nano, non-linear regression, logistic regression.

1 Introduction

The Automotive Industry in India is one of the largest in the world. As per data collected from Wikipedia, India manufactures over 17.5 million vehicles and exports 2.33 million every year. According to the Society of Automobile Manufacturers (SIAM), annual car sales are projected to increase up to 5 million vehicles by 2015 and more than 9 million by 2020. Increasing consumer demand has been driven by a buoyant economy, favourable demographics, and improving income curve. Price and fuel efficiency are considered importantdriversof...