TESLA and TATA Nano had a similar audacious goal i.e to bring an innovative car to the market. They had technological challenges, time constraints, and high expectations from the end-user however both companies took a different approach and different paths to achieve their aspirations. TATA nano failed and TESLA got tremendous success.
In hindsight, it's so clear how TESLA took the Lean & Agile Innovation approach whereas TATA Motors took a traditional waterfall approach for Innovation. The result is one created a new market segment and is leading it and others competing in the segment of Ultra Low Cost (ULC).
TATA Nano
TATA (www.tata.com) is a leading Indian conglomerate. It deals in from salt to software. TATA Motors is a leading Indian Automotive company that now owns brands such as Jaguar Land Rover. In 2003, its chairmen Mr. Rata Tata announced a car under $2200 USD (100000 Indian Rupees) for the common citizens who can’t afford a car otherwise. This was a tall order as the next cheapest car available in the world was around $5000 USD by a Chinese company. A 50% reduction in car cost meant revamping whole car manufacturing, designing, and delivery process. A number of Scientists and Engineers took up the challenge to realize the dream of “People’s Car”. Several inventions were done to realize the dream. Finally…
