PROJECT REPORT

ON

“Effect of Declining Market on TATA Motors”

BY

NILESH R. MANGHWANI

AM 26

P.G.D.M (MRKT)

2008-2010

SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION AND RESEARCH

PUNE- 411048

ACKNOWLEDGEMENT

Writing is a solitary task. However turning of millions of bytes of information requires an

army of talented folks . I have been fortunate enough to be assisted by many talented

and caring people. And I wish to express my appreciation all those help has been most

valuable.

To all these truly outstanding people , and many others too , my warm personal regard .

I am indeed grateful to my Director Mr. Sunil Kumar and Guardian Mr. Vishal Bhole and

class co-ordinator Mrs. Manisha Landefor providing me the necessary guidance and

facility required for completion of this project and for being an effective source of

inspiration. I am thankful to the library for providing the necessary magazines and

journals without which the completion of this project would not be possible

.

Your’s Faithfuly

Nilesh .R. Manghwani

C E R T I F I C A T E

This is to certify that the Project title Effect of Declining Market on TATA Motors is a

bonafide work carried out by NILESH R. MANGHWANI student of P.G.D.M (MRKT) of

Sinhgad Institute of Business Administration and Research, Pune for fulfillment of a project

report . He has worked under our guidance and direction. His work is found to be satisfactory

and complete in all respect.

Director Project Guide

Mr. Sunil Kumar Mr. Vishal Bhole

Date:

Place: SIBAR, PUNE

TABEL OF CONTENTS

1. Global Economic Downturn…………………………………………… 1

2. Impact of US Recession in India………………………………………. 1

3. Impact of Recession on Automobile Industry…………………………. 2

4. The Indian Automobile Industry Today……………………………….. 4

5. TATA Motor ltd Overview…………………………………………….. 5

6. Various Products of TATA Motors…………………………………….. 17

7. Other TATA Services……………………………………………………21

8. Share Holding Pattern of TATA Motors………………………………...22

9. Snapshot Analysis of Company : SWOT………………………………..22

10.Recent Business Decisions………………………………………………23

11.Marketing Strategies……………………………………………………..25

12.Human Resource Strategies……………………………………………...31

13.Operation Strategies……………………………………………………..34

14.Indian Automotive Players(Financial strategies)………………………..36

15.Conclusion………………………………………………………………46

16.Bibliography…………………………………………………………….47

GLOBAL ECONOMIC DOWNTURN

Definition: A recession is a decline in a country's gross domestic product (GDP) growth for two

or more consecutive quarters of a year. A recession is also preceded by several quarters of

slowing down.

Causes:

An economy which grows over a period of time tends to slow down the growth as a

part of the normal economic cycle. An economy typically expands for 6-10 years and tends to go

into a recession for about six months to 2 years.

A recession normally takes place when consumers lose confidence in the growth of

the economy and spend less.

This leads to a decreased demand for goods and services, which in turn leads to a

decrease in production, lay-offs and a sharp rise in unemployment.

Investors spend less as they fear stocks values will fall and thus stock markets fall

on negative sentiment.

Impact of a US recession on India:

Indian companies have major outsourcing deals from the US. India's exports to the

US have also grown substantially over the years. The India economy is likely to lose between 1

to 2 percentage points in GDP growth in the next fiscal year. Indian companies with big tickets

deals in the US would see their profit margins shrinking.

The worries for exporters will grow as rupee strengthens further against the dollar.

But experts note that the long-term prospects for India are stable. A weak dollar could bring more

foreign money to Indian markets. The whole of Asia would be hit by a recession as it depends on

the US economy. Asia is yet to totally decouple itself (or be independent) from the rest of the

world.

Impact of Recession in the Automobile Industry

Global recession has devastated the global auto industry with pinching effects on the

Indian auto industry. India is a strong and growing economy but the hit of recession has put red

marks on the entire balance sheet of the Indian economy.

Among the leading car manufacturers, General Motors and Ford were the first one to

file for bankruptcy. GM is struggling to stay alive and claims that the company has just enough

cash to continue its operations. Even the merger talks of GM and Chrysler have been officially

brought to a halt because of the liquidity crunch.

U.S sales have fallen down by 32% which has directly affected the Indian car industry

where GM has recorded a fall of 45%, Ford of 30% and Chrysler down by 35%. All the three

major car manufacturers have reported declined growth after the hit of recession.

After the industry experienced a heavy fall in the month of August due to inflation,

September proved to be a promising month with things setting out at the right place. Then again

the market went in the negative terrain swayed by the wind of recession.

October usually is considered to be the best month for car sales because of the festive

season. Unfortunately, this year it proved to be a curse for the Indian auto industry. At one end of

the spectrum, car manufacturers like Tata Motors, GM, Hyundai, Ford, Renault, Mahindra, and

Maruti Suzuki are investing huge amounts to establish new production plants and line up launch

of car models. At the other end of the spectrum, SIAM has cut down the growth forecast of

automotive sales from 12.5% to 9.5%.

This initiative taken by SIAM further forced few car manufacturers like Tata Motors

and Maruti Suzuki to cut down their production which further took away the job of almost 300

workers. Even Mahindra-Renault reduced the number of production units of their Logan.

In addition, the severe liquidity crunch in the U.S market has also forced many of the

car buyers to cut upgrades to bigger cars and many are pushed back from buying new cars. With

deteriorating car sales, even production has gone down to a great extent, which has eventually

put a negative impact on the auto component industry.

In October, overall car sales declined to about 9.05% over October 2007 and the car

production fell down to about 12.32%. Further to that even the month of November was not

successful in bringing some charm to the industry. Infact, November recorded the steepest fall in

car sales in the past five years.

Maruti Suzuki recorded a fall of 27%, Mahindra & Mahindra recorded a fall of about

40%, and Tata Motors showed 12% decline in the car sales.

It is also said that the recent Mumbai terror attack and the cyclonic rain in South India

have added to the woes of Indian car manufacturers.

The Indian Auto Industry Today

In 2009 estimated rate of growth of India auto industry is going to be 9 percent. Auto industry in

India has been hit hard by ongoing global financial recession. Sales figures of India automobile

industry for December 2008 have shown devastating after effects of global financial slowdown.

However, there is still hope for automobile industry of India in 2009 as there are certain factors

working in its favor. India is blessed with a middle class, which is getting economically stronger

with every passing day. This class is being touted as potential consumers for India auto industry

in years to come.

Indian economy has been, more or less, able to withstand tremors of global financial meltdown.

Even though its rate of growth has slowed down considerably, there are hopes of an economic

revival. Work force of auto industry of India is relatively well trained.

All these factors indicate that there could be a decent future for India auto industry in days

Hyundai, a major automobile establishment of South Korea, has put in large sums of money in

India automobile market. As per its estimates, India auto industry could become a major center

for small car manufacturing organizations in future.

There are some other automobile companies of world who have shown interest in India auto

market. Major names among these are General Motors, Skoda Auto and Mercedes-Benz. These

companies have major plans lined up for India auto industry and are likely to invest a huge

amount of money in India automobile market

India domestic auto industry has been passing through a tough phase in 2008 and such a trend is

supposed to continue in 2009 as well. Leading members of India auto industry have forecast a

difficult path in 2009. Shinzo Nakanishi, managing director of Maruti Suzuki, has said that 2009

would present them with a number of challenges.

Tata Motors Limited

Overview

Tata Motors Limited, formerly

known as TELCO (TATA

Engineering and Locomotive

Company), is a multinational

corporation headquartered in Mumbai, India. It is India's largest passenger automobile and

commercial vehicle manufacturing company. Part of the Tata Group, and one of the world's

largest manufacturers of commercial vehicles. The OICA ranked it as the world's 20th largest

automaker, based on figures for 2006.

Tata Motors was established in 1945, when the company began manufacturing locomotives. The

company manufactured its first commercial vehicle in 1954 in a collaboration with Daimler-

Benz AG, which ended in 1969 Tata Motors was listed on the NYSE in 2004, and in 2005 it was

ranked among the top 10 corporations in India with an annual revenue exceeding INR 320

billion. In 2004, it bought Daewoo's truck manufacturing unit, now known as Tata Daewoo

Commercial Vehicle, in South Korea. It also, acquired a 21% stake in Hispano Carrocera SA,

giving it controlling rights in the company. Tata Motors launched the Tata Nano , noted for its Rs

100,000 price-tag, in January 2008.

In March 2008, it finalised a deal with Ford Motor Company to acquire their British Jaguar Land

Rover (JLR) business, which also includes the Rover, Daimler and Lanchester brand names.The

purchase was completed on 2 June 2008

Tata Motors has its manufacturing base in Jamshedpur, Pantnagar, Lucknow, Ahmedabad and

Pune.

1. History

Tata Motors launches its first truck in collaboration with Mercedes-Benz

Tata Motors is a part of the Tata and Sons Group, founded by Jamshedji Nussarwanji Tata and J.

Baker. The company was established in 1945 as a locomotive manufacturing unit and later

expanded its operations to commercial vehicle sector in 1954 after forming a joint venture with

Daimler-Benz AG of Germany.

2.Cars

Tata Indica

After years of dominating the commercial vehicle market in India, Tata Motors entered the

passenger vehicle market in 1992 by launching the Tata Sierra, a multi utility vehicle. After the

launch of three more vehicles, namely, Tata Estate (1992, a stationwagon design based on the

earlier 'TataMobile' [1989] a light commercial vehicle which some people may still think of as

Tata's first passenger car), Tata Sumo (LCV, 1994) and Tata Safari (1998, India's first sports

utility vehicle); In 1998 Tata launched the Indica, the first fully indigenous passenger car of

India. Though the car was initially panned by auto-analysts, the car's excellent fuel economy,

powerful engine and aggressive marketing strategy made it one of the best selling cars in the

history of the Indian automobile industry. A newer version of the car, named Indica V2, was a

major improvement over the previous version and quickly became a mass-favorite. A badge

engineered version of the car was sold in the United Kingdom as the Rover CityRover . Tata

Motors also successfully exported large quantities of the car to South Africa. The success of

Indica in many ways marked the rise of Tata Motors. Note: In 1996-97 Tata launched the Tata

Sumo Deluxe and the Tata Sierra Turbo variants respectively.

3.Daewoo acquisition

Main article: Tata Daewoo Commercial Vehicle

Tata Novus is one of the best selling commercial trucks in South Korea.

With the success of Tata Indica, Tata Motors aimed to increase its presence worldwide. In 2004,

it acquired the Daewoo Commercial Vehicle Company of South Korea. The reasons behind the

acquisition were:

• Company’s global plans to reduce domestic exposure. The domestic commercial vehicle

market is highly cyclical in nature and prone to fluctuations in the domestic economy.

Tata Motors has a high domestic exposure of ~94% in the MHCV segment and ~84% in

the light commercial vehicle (LCV) segment. Since the domestic commercial vehicle

sales of the company are at the mercy of the structural economic factors, it is increasingly

looking at the international markets. The company plans to diversify into various markets

across the world in both MHCV as well as LCV segments.

• To expand the product portfolio Tata Motors recently introduced the 25MT GVW Tata

Novus from Daewoo’s (South Korea) (TDCV) platform. Tata plans to leverage on the

strong presence of TDCV in the heavy-tonnage range and introduce products in India at

an appropriate time. This was mainly to cater to the international market and also to cater

to the domestic market where a major improvement in the Road infrastructure was done

through the National Highway Development Project

On its journey to make an international foot print, it continued its expansion through the

introduction of new products into the market range of buses (Starbus & Globus).

4. Joint ventures

Tata MarcoPolo NON-AC City Bus in Delhi.The NON-AC version is only used in Delhi while

AC versions are used in Bangalore, Mumbai and Delhi alike

In 2005, sensing the huge opportunity in the fully built bus segment, Tata Motors acquired 21%

stake in Hispano Carrocera SA , Aragonese bus manufacturing company and introduced its high-

end inter-city buses in the country.

Tata Motors has also formed a 51:49 joint venture with Marcopolo S.A. , a Brazil-based global

leader, lead by Brian Behrle, in bus body building. This joint venture is to manufacture and

assemble fully-built buses and coaches targeted at developing mass rapid transportation systems.

The joint venture will absorb technology and expertise in chassis and aggregates from Tata

Motors, and Marcopolo will provide know-how in processes and systems for bodybuilding and

bus body design.

5. Tata Ace

Tata Ace was India's first mini truck

Main article: Tata Ace

Tata Ace, India's first indigenously developed sub-one ton mini-truck, was launched in May

2005. The mini-truck was a huge success in India with auto-analysts claiming that Ace had

changed the dynamics of the light commercial vehicle (LCV) market in the country by creating a

new market segment termed the small commercial vehicle (SCV) segment. Ace rapidly emerged

as the first choice for transporters and single truck owners for city and rural transport. By

October 2005, LCV sales of Tata Motors had grown by 36.6 percent to 28,537 units due to the

rising demand for Ace. The Ace was built with a load body produced by Autoline Industries.By

2005, Autoline was producing 300 load bodies per day for Tata Motors. Ace is still one of the

number maker for TML, TML sold the 2,00,000th Ace in August 2008, within 4 years since its

introduction.

Tata Ace has also been exported to several European, South American and African countries.

Electric-versions of Tata Ace are sold through Chrysler's Global Electric Motorcars division.

6. 2007

Tata Pick Up, unveiled in 2007, is expected to enter European and American market by 2009.

In 2007, Tata Motors generated revenues of Rs 31,884.69 crore.

In 2007, Tata Motors launched several concept models and future designs of existing models. It

also formed joint ventures with various local companies in several countries to assemble Tata

cars. Tata Motors launched a re-designed version of Tata Xenon TL during Motor Show Bologna

which would be assembled in Thailand and Argentina. A pick-up variant of Tata Sumo was also

launched under the program 'Global Pick-Up'. The company plans to launch the new pick-up

model in India, Southeast Asia, Europe, South Africa, Turkey and Saudi Arabia. Tata Motors also

unveiled newer model of Tata Indigo and Tata Elegante concept-car during the Geneva Auto

Show.

Tata Motors also formed a joint venture with Fiat and gained access to Fiat’s diesel engine

technology.Tata Motors is looking to extend its relationship with Fiat and Iveco to other

segments like the 'Global Pick-Up' program. The launch of the 'Global Pick-Up' will mark the

entry of the company into developed markets like Europe and the United States. The project was

initially a collaboration between Tata Motors and its subsidiary Tata Daewoo Commercial

Vehicles, but later Tata Motors decided to work with Iveco as Daewoo’s design was not in sync

with the needs of sophisticated European customers. The company has formed a joint venture

with Thailand’s Thonburi Company, an independent auto assembler, in which Tata Motors will

hold a 70% stake.

7.2008 onwards

8. Compressed air car

Motor Development International of Luxembourg has developed the world's first prototype of a

compressed air car, named OneCAT.In 2007, MDI owner Guy Negre was reported to have "the

backing of Tata"

It has airtanks that can be filled in 4 hours by plugging the car into a standard electrical plug. In

2008 MDI planned to also design a gas station compressor, which would fill the tanks in 3

minutes.There are no gasoline costs and no fossil fuel emissions from the vehicle when run in

town, but "the compressed air driving the pistons can be boosted by a fuel burner".

OneCAT is a five seat vehicle with a 200-litre (7.1 cu ft) trunk. With full tanks it will run at

100 km/h (62 mph) for 90 kilometres (56 mi) range in urban cycle. It is actually a dual fuel car

but it is more efficient than any present Hybrid cars.

9. Tata Nano

Tata Nano

Tata has developed a car, named Tata Nano , that aims to sell in 2008. It is the least expensive

production car in the world: the price is about Rs. 1,00,000 (USD $2,000)The company unveiled

the supermini car during the Auto Expo 2008 exhibition in Pragati Maidan , New Delhi. Bajaj

Auto and Mahindra-Renault have[when?] plans to launch cars in this price range.

Tata has faced controversy over developing the Nano. Some environmentalists are concerned that

the launch of such a low-price car could lead to mass motorization in India with adverse effects

on pollution and global warming. There was also strong opposition to the compulsory acquisition

of land for the proposed car factory in Singur West Bengal. NowTata Motors Limited plan to set

up the Nano factory in Sanand, Gujarat, because of the problems faced in West Bengal.

To solve this, Tata is goingto produce the E-Nano, an electric version, in partnership with

Miljøbil Grenland AS

10. Jaguar Cars and Land Rover

Main articles: Jaguar Cars and Land Rover

As of 27 March 2008, Tata Motors reached agreement with Ford to purchase their Jaguar and

Land Rover operations for US$2 billion. The sale is expected to be completed by the end of the

second quarter of 2008Tata will also gain the rights to the Daimler, Lanchester, and Rover brand

names.

In addition to the brands, Tata Motors has also gained access to 2 design centers and 3 plants in

UK. The key acquisition would be of the intellectual property rights related to the technologies.

11.Electric vehicles

Tata Motors unveiled the electric versions of passenger car Tata Indica and commercial vehicle

Tata Ace. Both run on lithium batteries . The company has indicated that the electric Indica

would be launched locally in India in about 2010, without disclosing the price. The vehicle

would be launched in Norway in 2009.

Tata Motors' UK subsidiary, Tata Motors European Technical Centre, has bought a 50.3%

holding in electric vehicle technology firm Miljøbil Grenland/Innovasjon of Norway for

US$1.93 M, which specialises in the development of innovative solutions for electric vehicles,

and plans to launch the electric Indica hatchback in Europe next year.

12. Global operations

The purchase of Jaguar Cars is expected to help give Tata Motors a foothold in European and

American markets.

With the unveiling of Tata Elegante during Geneva Motor Show, Tata Motors revealed its

intention to enter the sedan and sports car markets.

Tata Indica during an auto exhibition in Bangkok, Thailand. Indica and Xenon TL will be

assembled in Thailand and Argentina.

Tata Prima was unveiled during the Geneva Motor Show in 2009. The Luxury Sedan was

designed by Pininfrina and has marked the entry of Tata into the international sedan market. The

car is to be sold in India by 2013 and around the world by 2015

Tata Motors has expanded its production and assembly operations to several other countries

including South Korea, Thailand, South Africa and Argentina and is planning to set up plants in

Turkey, Indonesia and Eastern Europe.

13.Global brands

Tata Motors has been aggressively acquiring foreign brands to increase its global presence. In

2004, Tata Motors bought Daewoo's truck manufacturing unit, now known as Tata Daewoo

Commercial Vehicle, in South Korea. In March 2005, it acquired a 21% stake in Hispano

Carrocera SA, giving it controlling rights in the company.

On 26 March 2008 Tata Motors agreed to purchase Jaguar Cars and Land Rover from Ford

Motor in a deal worth $2.3bn (£1.15bn)Tata Motors has also acquired from Ford the rights to

three other brand names: Daimler, Lanchester and Rover. it was rumoured in 2008 that Tata was

in negotiations along with Fiat, General Motors and Renault-Nissan as a possible suitor for the

rapidly declining Chrysler, which is currently owned by Cerberus Capital Management 14.

Present global challenge

Tata Motors have some distinct advantages in comparison to other multi-national competitors.

There is definite cost advantage as labor cost is 8-9 percent of sales as against 30-35 percent of

sales in developed economies. Tata motors have extensive backward and forward linkages and it

is strongly interwoven with machine tools and metals sectors. Tata Group's strong expertise in

the IT based engineering solution for products and process integration has helped Tata Motors.

India has a large auto component industry noted for its world class capabilities. There is huge

demand in domestic markets due to infrastructure developments and Tata Motors is able to

leverage its knowledge of Indian market. There are favorable Government polices and

regulations to boost the auto industry.

However, some major automakers have moved their operations to India to cut costs. Volvo

entered India in 1998 to focus on production of its fully built buses. In India, it has focused on

providing economical transport solutions in consonance with its values of safety, quality, and

environmental care. Its competitive advantage is its high technology which makes the vehicle a

very comfortable option to travel through. Tata's trucks have long been reputed for their

unmatched performance, build, and technological advancements that are the flag bearers in their

production activities in India. It is still operating in the niche market of high end buses where the

Tata compete through its Hispano Carrocera and Marcopolo S.A. JV buses.

The Government of India announced an automobile policy in December 1997. The policy

required majority-owned subsidiaries of foreign car firms to invest at least US$50 million in

equity if they wished to set up manufacturing projects in India. It also forced them to take on

export obligations to fund their auto part imports and required them to submit to a schedule for

increasing the share of locally made parts in their cars. Mere car assembling operations were not

welcomed.

An Indian cabinet panel will soon consider a new automobile policy that aims to set fresh

investment guidelines for foreign firms wishing to manufacture vehicles in the country.

Investments in making auto parts by a foreign vehicle maker will also be considered a part of the

minimum foreign investment made by it in an auto-making subsidiary in India. The move is

aimed at helping India emerge as a hub for global manufacturing and sourcing for auto parts. The

policy sets an export target of $1 billion by 2005 and US$2.7 billion by 2010. The policies

adopted by Government will increase competition in domestic market, motivate many foreign

commercial vehicle manufactures to set up shops in India, whom will make India as a production

hub and export to nearest market. Thus Tata Motors CV will have to face tough competition in

near future, which might affect its growth negatively.

15.Future challenges

Tata Xover

Plastic Car Production- Tata plans on producing a car that is made of nearly 100% plastic.

• Mahindra and Mahindra : JV with ITEC, North American leader in heavy trucks. M&M

has formed a 51:49 JV called Mahindra International with ITEC, USA (parent Navistar

International), to manufacture commercial vehicles and to bolster its position in the CV

business. ITEC is the leader in medium and heavy trucks and buses in North America,

and is the world's largest manufacturer of medium-duty diesel engines. Mahindra

International aims to have a presence across the CV market (6-35 tonnes GVW) with

variants of passenger transport, cargo and specialised load applications and is likely to

start producing medium/heavy commercial vehicles from FY09.

• Force Motors Ltd : JV with MAN for manufacturing high-tonnage vehicles Force Motors

has paired up with MAN in a 70:30 JV to manufacture high-tonnage and specialty

vehicles, such as long-haul trucks, tippers, tractor trailers and multi-axle vehicles in the

16-32 tonne range at its Pithampur plant, with an initial capacity of 24,000 units per

annum and at an investment of Rs7bn. The JV plans to sell nearly half of its production in

the domestic market, while the rest is to be exported to the Middle East, Turkey, Russia,

Asia and Africa. Further, the two companies have formed another JV to manufacture

buses in India from end-2007.

• Ashok Leyland : Acquisition of Czech Republic-based Avia. Ashok Leyland (ALL)

recently acquired the truck unit of Czech Republic-based Avia for US$35m. Avia

manufactures 6-9 tonne LCVs and has a capacity of 20,000 units per annum. The

acquisition has given ALL direct access to an entire range of Avia trucks, Avia’s press

shop with dies and tools, welding lines, state-of-the-art paint shop and R&D facilities.

ALL has also entered into technology agreements with Hino Motors of Japan and ZF of

Germany to complement its in-house R&D efforts and developing complementary

components and aggregates.

Various Products of TATA Motors [1] Passenger cars and utility vehicles

Tata Indigo SW

• Tata Sierra

• Tata Estate

• Tata Sumo/ Spacio

• Tata Safari

• Tata Indica

• Tata Indigo

• Tata Indigo Marina

• Tata Winger

• Tata Nano (3RD March 2009)

• Tata Xenon XT

• Tata Xover (2009)

[2] Concept vehicles

Tata Cliffrider

• 2000 Aria Roadster

• 2001 Aria Coupe

• 2002 Tata Indica

• 2002 Tata Indiva

• 2004 Tata Indigo Advent

• 2005 Tata Xover

• 2006 Tata Cliffrider

• 2007 Tata Elegante

• 2009 Tata Prima

[3] Commercial vehicles

Tata 1616 Starbus

Tata Marcopolo Buses in the Delhi BRT.

Tata StarBus in Nagpur, Maharashtra. Tata Low Floor Buses are also used by administrations in

Delhi, Mumbai, Pune, Udaipur and Indore

• Tata Ace

• Tata TL/ Telcoline /207 DI Pickup Truck

• Tata 407 Ex and Ex2

• Tata 709 Ex

• Tata 809 Ex and Ex2

• Tata 909 Ex and Ex2

• Tata 1109 (Intermediate truck)

• Tata 1510/1512 (Medium bus)

• Tata 1610/1616 (Heavy bus)

• Tata 1613/1615 (Medium truck)

• Tata 2515/2516 (Medium truck)

• Tata Starbus (Medium Bus)

• Tata Globus (Low Floor Bus)

• Tata Marcopolo Bus (Low Floor Bus)

• Tata 3015 (Heavy truck)

• Tata 3118 (Heavy truck) (8X2)

• Tata 3516 (Heavy truck)

• Tata 4923 (Ultra-Heavy truck) (6X4)

• Tata Novus (Heavy truck designed by Tata Daewoo)

[4] Military vehicles

• Tata LSV (Light Specialist Vehicle)

• Tata 2 Stretcher Ambulance

• Tata 407 Troop Carrier, available in hard top, soft top, 4x4, and 4x2 versions

• Tata LPTA 713 TC (4x4)

• Tata LPT 709 E

• Tata SD 1015 TC (4x4)

• Tata LPTA 1615 TC (4x4)

• Tata LPTA 1621 TC (6x6)

• Tata LPTA 1615 T

Other Tata services: 1) Tata Insurance:

Tata AIG Life Insurance Company Limited and Tata AIG General Insurance Company Limited

(collectively 'Tata AIG') are joint ventures of the Tata Group and American International Group, Inc.

(AIG). Tata AIG combines the strength and integrity of the Tata Group with AIG's international

expertise and financial strength,

2) Tata motor finance:

Tata Motors is the largest automobile company in this part of Asia. The company has grown in a

big way in recent years and has embarked on expansion and acquisition programs. As part of it,

Tata Motors has also strengthened and expanded on its finance wing Tata Motor Finance that

provides for loan and financing options to the customers buying Tata Motors automobiles.Tata

Motorfinance (TMF) is the automobile financing wing of Tata Motors. It was launched in June

2003 and provides for loans on various segments of company automobiles like passenger cars,

utility and commercial vehicles along with construction equipments. The company that has

grown into most of the Indian cities along with a significant presence in some of the foreign

markets too, today boasts of 109 branches in 22 Indian states.

Some of the terms associated with the Tata Motor finance are as follows:

• Car financing/loan options available for customers belonging to different categories

• The repayment period varies to the tune of 36 months-84 months

• The interest paid on the loans are on the lower end

• Finance on passenger and commercial vehicles on all Tata vehicles and Fiat models

Palio and Adventure include top up loans, used vehicle finance, loan takeover and

refinancing

• The paperwork is limited and the financing company's representative can be called even

at home to complete the formalities, including calculating the likely Equated Monthly

Installment (EMI) that the customer might have to pay.

Marketing Strategies

a) Introduction of the new Tata nano

The introduction of the Nano received media attention due to its targeted low price. 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." The car is expected to boost the Indian

economy, create entrepreneurial-opportunities across India as well as expand the Indian car

market by 65% The car was envisioned by Ratan Tata , Chairman of the Tata Group and Tata

Motors, who has described it as an eco-friendly "people's car". Nano has been greatly

appreciated by many sources and the media for its low-cost and eco-friendly initiatives which

include using compressed-air as fuel and an electric-version (E-Nano Tata Group is expected to

mass-manufacture the Nano, particularly the electric-version, and, besides selling them in India,

to also export them worldwide[25][26]

Critics of the car have questioned its safety in India (where reportedly 90,000 people are killed in

road-accidents every year), and have also criticised the pollution that it would cause (including

criticism by Nobel Peace Prize winner Rajendra Pachauri ). However, Tata Motors has promised

that it would definitely release Nano's eco-friendly models alongside the gasoline-model

The Nano was originally to have been manufactured at a new factory in Singur, West Bengal, but

increasingly violent protests forced Tata to pull out October 2008. (See Singur factory pullout

below.) Currently, Tata Motors is reportedly manufacturing Nano at its existing Pantnagar

(Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat.]The company will

bank on existing dealer network for Nano initially. The new Nano Plant could have a capacity of

500,000 units, compared to 300,000 for Singur. Gujarat has also agreed to match all the

incentives offered by West Bengal government.

Cost Cutting features

• The Nano's boot does not open, instead the rear seats can be folded down to access the

boot space

• It has a single windscreen wiper instead of the usual Some exterior parts of it are glued

together, rather than welded.

• It has no power steering.

• Its door opening lever was simplified.

• It has 3 nuts on the wheels instead of the statutory 4 nuts.

• It only has 1 side view mirror

Price

Tata initially targeted the vehicle as "the least expensive production car in the world"aiming for a

starting price of 100,000 rupees or approximately US$2000 (using exchange rate as of March 22,

2009)6 years ago, despite rapidly rising material prices at the time

As of August 2008, material costs had risen from 13% to 23% over the car’s development, and

Tata faced the choice of:

• introducing the car with an artificially low price through government subsidies and tax-

breaks

• forgoing profit on the car

• using vertical-integration to artificially boost profits on cars at the expense of their

materials industries

• partially using inexpensive polymers or biodegradable plastics instead of a full metal-

body raising the price of the car option.

Model versions

At its launch the Nano was available in three trim levels:

• the basic Tata Nano Std priced at 123,000 Rupees has no extras;

• the deluxe Tata Nano CX at 151,000 Rupees has air conditioning;

• the deluxe Tata Nano TX at 135,000 Rupees has air conditioning, Yellow Colour Taxi

Version;

• the luxury Tata Nano LX at 172,000 Rupees has air conditioning, power windows and

central locking

the Nano Europa, European version of the Tata Nano has all of the above plus a larger body,

bigger 3-cylinder engine, anti-lock braking system (ABS) and meets European crash standards

and emission. The base model will have fixed seats, except for the driver's, which will be

adjustable, while the deluxe and luxury models will get air conditioning and body coloured

bumpers.

b)Modification in tata sumo

New Tata Sumo

The Toyota Qualis and now competes with Chevrolet Tavera. The discontinuation of Qualis to

launch the Toyota Innova proved advantageous to Tata Sumo. The Sumo has seen a series of

changes in terms of refinement in this decade. It has been the favourite choice for cab owners, as

it is rugged and affordable.

The Tata Sumo has been enjoying its position in the MUV market since 1994. It had stiff

competition with new Sumo Victa has been portrayed as a family lifestyle vehicle, but in fact is a

carry over of the old Sumo, with some cosmetic changes. The Sumo comes in nine Victa

variants: CX 10/7 Str, DI CX 7/9/10 Str, DI EX 7/9 Str, DI GX 7/9 Str, DI LX 7/9 Str, EX

10/7Str, GX 7 Str, GX TC 7 Str, and LX 10/7 Str. All variants, except the Victa DI variants, are

powered by a 2-litre Inline-4 diesel engine. The GX and GX TC variants get a 2-litre

turbocharged diesel engine that generates 89 bhp. The Victa DI variants get a 3-litre turbocharged

diesel engine. Refinement, both internal and external, is evident across the variants. Tata's latest

three variants under the 'Sumo Grande' category are LX, EX and GX available in 2-seater, 7-

seater and 8-seater configurations. Sumo Grande boasts of a powerful 2.2-L direct injection

common rail (DICOR)

engine.

Quick Take

* Fuel Economy 9/14 kmpl (city/highway)

Available Engines 2.0L Inline-4, 67 bhp diesel

2.0L Inline-4, 89 bhp turbo diesel

3.0L Inline-4, 69 bhp diesel

2.2L DiCOR In-line 4, 118 bhp diesel

Available Transmissions 5-speed Manual Transmission (MT)

c) New version of indigo ,indigo Dicor

Dicor Variants

The DICOR (common rail diesel) version of Tata Indigo is available in two variants which has

already hit the bull's eyes. The beefy & bony structured sedan has the capacity to deliver

maximum torque of 140Nm @ 1800 - 3000 rpm. The Indigo Dicor from Tata Motors has been

made apt for Indian roads especially with its driver & co passengers oriented positive attributes

such as :

• Anti-submarine front seats

• New electronic instrument cluster with engine RPM meter

• Rear Seat with double folding backrest

• Video player with MP3: with headrest mounted LCD screens

• 1.4-litre as rail diesel engine

Indigo LX Dicor

Tata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear

view window, black dials with chrome rings & star check as the new pattern for its

console&ACfascia.

Indigo LS Dicor

Tata Indigo LS Dicor features manually operated outer rear view mirror, black dials, & Benz

silver as the new pattern for console & AC fascia. It has no mounted LCD screens.

ENGINES

Petrol 1396 cc MPFI Petrol Engine with 32-Bit Microprocessor Max. power - 85 PS @

5500 rpm Max. torque - 12 Kgm @ 3500 rpm

Diesel Turbo-charged 1405 cc Indirect Injection Engine with Intercooler Max. Power -

70 PS @ 4500 rpm Max. Torque - 13.5 kgm @ 2500 rpm

Dicor 32-bit microprocessor based 1396 cc DICOR(Direct Injection Common Rail) 16-valve engine with Dual

Over Head Camshafts and a Variable Geometry Turbocharger(VGT) Max.power-70 PS@4000 rpm

Max.torque - 140Nm@1800-3000 rpm

e) Tapping of Rural Markets

According to the National Council for Applied Economic Research, or NCAER, rural India

accounts for 70% of India’s population, 56% of the national income, 64% of the total

expenditure and one-third of the total savings. So, the difficulties faced in cracking these markets

pale before the huge potential they offer a company. Of the total sales (of consumer goods),

around 55% come from rural India, and going ahead, the contribution is likely to grow. NCAER

data suggests that in real terms, at 1999 prices, the size of the rural economy will be about Rs16

trillion in 2012-13 compared with Rs12 trillion in 2007-08. The share of non-farm income will

be about two-thirds of the rural economy by 2012-13.

Noticing this huge potential Tata motors now plans to tap the rural market, 60 per cent of

which runs on cash. Tata motors ltd. are working on strategies to make inroads into these

markets.

Human Resource Strategies

a) Hiring Practices

Hiring the right talent is the greatest challenge in business environment and new and

innovative hiring strategies are the need of the hour if Indian companies have to succeed in

the changing global scenario. With Indian companies entering the phase of global mergers

and acquisitions, already there is a shift in standard hiring practices, the compensation

being offered, sharing the vision of the company and transmitting a sense of passion in the

company to the prospective employee will go a long way in attracting the right talent.

Some of the innovative hiring strategies could include hiring teams and not just individuals

and offering education and placement packages. Over the past few years HR is witnessing a

dramatic increase in lateral hiring of professionals with some years of experience, hiring

from the public sector as well as experienced people looking for second careers. The

challenge facing many firms is to hire with retention.

A smart and sophisticated workforce will be the most important corporate resource over the

next 20 The demand for this resource is sure to go up; however, the supply is already

dwindling.

2.Re-organizing the organizational structure of co.:

At the time of recession its important task of hr personal to reorganize the structure of

the company.so as to avoid extra man force and duplication of work.

3.Reducing in the incentives given to employees.:

Human resourse manger should cut incentives of individuals.for ex-If marketing manager used to

get incentives for hotelling accommodations 2000 per day.it should be cut down to 1200 per

day..as already due to recession he will get equal amount of service by paying the less price.

4.providing various offers to employee so to maintain the moral to

work hard.

It is very important from company point of view to survive in recession.so company should

provide different offers and gifts. For achievements of certain targets so as to maintain the moral

of working in the company. Of employees..

5. No salary cuts and increase in Resource and Development

They have not cut salaries of employees. But they have reduced the extra working hours, which

means the work which is to be done in two hours it has to be completed in two hours. They have

reduced delayes in work.

Operations Strategies

a) Reducing no. of shifts :

Tata motors has reduced its number of shifts frm 3 to 2 in a day and so as to control reduce

cost of production. And started making production according to the sales required.

b) Quality Management

Quality management is crucial to effective operations management, particularly continuous improvement. More recent advancements in quality, such as benchmarking and Total Quality Management, have resulted in advancements to operation s management as well.

c)Inventory ManagementCosts can be substantial to store and move inventory. Innovative methods, such as Just-in-Time inventory control, can save costs and move products and services to customers more quickly.

Conclusion

Over the period of time, fear of a slowdown in the United States of America have increased. The impact of the subprime crisis along with a slowdown in mortgages has led to a significant

lowering of growth estimates. Since the United States dominates the global economy, any slowdown there would have an impact on most of the global economic variables.

For India, it could mean a further appreciation in the rupee vis--vis the US dollar and a darkening

of business outlook for sectors dependent on US companies. The overall impact of a US

slowdown on India would, however, be minimal as the factors driving growth here are more

local in nature. Unlike the rest of Asia, India is a strong domestic demand story, so any slowing

in the US is likely to have a more muted impact on India. Strong growth in domestic

consumption and significant spending on infrastructure are the two pillars of Indias growth story.

No sector has a dominant influence on earnings growth and risks to our estimate are limited.

Corporate India is also learning to master the art of efficient capital management, reduction in

costs and delivery of value-added services to sustain profit margins. Further, interest rates are

expected to be stable primarily due to control over inflation and proactive measures undertaken

by the RBI

BIBLIOGRAPHY

[1] Philip Kotler, Kevin Keller,

Marketing Management (Twelth Edition)

[2] Marketing Management, The McGraw.Hill company,

Rajan Saxena (Third Edition)

[3] www.pearsoned.co.in/pkotler

[4] http://www.genmills.com/corporate/company/india.aspx

[5] http://www.utube.com

www.wikipedia.com

[6] http://iegd.institut.com

[7] http://www.rotman.utoronto.com